Government's propsed legislation could reduce competition and push premiums up.
The Government’s intention to publish an Equality Bill, which would include provision to outlaw unjustifiable discrimination based on age, will not affect the differential provision of products or services for older people where this is justified, the ABI has said.
Nick Starling, the ABI’s Director of General Insurance and Health, said: “Insurers agree that unfair discrimination on the basis of age is wrong. That is why they do not practice it. The Government, organisations that represent older people and the insurance industry agree that insurance premiums should reflect the risk presented by individual consumers.
"We are engaged in discussions with the Government on the proposed Bill, which we hope will endorse this important principle. Legislation, no matter how well-intentioned, could have the unintended negative consequence of forcing some insurers to withdraw certain products altogether, reducing competition and availability and pushing up prices for all age groups.
Starling added: “Insurance for older people is available from a range of providers. For example, single trip travel insurance is widely available for older people at fair prices. However, we recognise that some people may need more help to find the most appropriate insurance policies for them. We are working to improve this, and we know that the Government and age charities will support our efforts in this area.”