Older people are facing considerable disadvantage in finding travel and holiday insurance, according to a comprehensive new report published today (17 March 2007) by Age Concern and Help the Aged.

The report – “Insurance and Age: Exploring behaviour, attitudes and discrimination” – found that one in four people over 75 and one in five people over 65 were unsuccessful in getting quotations for motor insurance, travel insurance or care hire. This compares with just one in thirty-three of those aged 30 – 49.

This has meant that 13% of people over 80 have been put off travelling due to access, cost or perceived cost of insurance. The survey also found that 31% of those over 80 felt discriminated against when getting a quotation.

Unsurprisingly, older people took a dim view of the insurance industry, and see insurance companies as preoccupied with money and more interested in attracting new customers rather than serving existing ones. They also said that they felt that they were working through an “insurance minefield” of arbitrary charges and false promises.

The report calls on the insurance companies and the Association of British Insurers to work together to consider how they can develop - and effectively market - insurance products to meet the growing needs and aspirations of an older population. It also calls for greater transparency in the quotation system and better information on why older people have to pay more or are refused services.

The report also highlights the importance of driving and travel for older people: More adults in their 70s currently have motor insurance than those aged 20-24; over one in three people age over 70 and one in eight people in their 90s has motor insurance. It is anticipated that the number of those aged 70+ with a driving license will increase from the current 4 million to over 10 million by 2050.  At the same time, people in their 60s are more likely to have been on holiday in the last year than adults aged 18-59.

The report is published ahead of a conference on 22 March. This joint event from the Association of British Insurers, Help the Aged and Age Concern will examine the results of the research and will explore the attitudes, behaviour and experiences of older people in relation to motor and travel insurance.

David Sinclair, Senior Policy Manager at Help the Aged, said:

"This research confirms our suspicions that older people often get a rough deal from the insurance industry. Their inability to provide quotes for so many older people smacks of market failure.  Older people find it harder to access insurance and are less likely to shop around for alternative products. Government must take the opportunity of the forthcoming Single Equality Act to end age discrimination by putting in place legislation to ensure older people are not discriminated against by financial services, simply because of their age."

“As the older population grows, this will become a bigger and bigger issue. We hope next week’s event will launch a real discussion between older people and insurance companies that sets out a positive way forward for insurance.”

Gordon Lishman, Director General of Age Concern, said:

“This report clearly shows the extent and scope of the injustices older people are facing in access to insurance. It is not acceptable.

“We look forward to working with insurance companies to deliver a fair deal for older people. As the population ages, services providers will ignore older people at their peril.”

The survey asked 344 people to attempt to obtain motor insurance, travel insurance and care hire and then conducted qualitative research into their experiences. The nature of those taking part – higher than average internet users – meant that the survey understates the problem faced by older people, particularly those who are very old and very vulnerable.

www.ageconcern.org.uk 17th March 2007