Insurance Industry: Travel Premiums

Lord Watts Excerpts

Tuesday 28th June 2022 Lords Chamber

[Baroness Penn (Con)]

Age can be a risk factor in the provision of insurance. It is right for the market to take that into account but, where there are examples of discrimination that go beyond assessment of the risk factor, that is for the FCA to consider as the regulator of the market.

[Lord Watts (Lab)]

The Government rely on the regulator, but is not the problem that many regulators do not do the job, be it water, insurance or many other areas? What are the Government doing to monitor the performance of regulators and, when they fail, to remove and replace them?

[Baroness Penn (Con)]

I think I have explained one action that the regulator has already taken in respect of this question, on the signposting agreement that came into place in April last year. The FCA has also acted on general insurance pricing practices, where it was found that existing customers renewing their insurance were being charged unfair rates so that insurers could offer new deals to people who were prepared to move. As I said, the FCA has taken action on that front. Since 1 January 2022, new rules have been in place. As I also said, the Government have the Financial Inclusion Policy Forum, bringing together market operators and the regulator to look at questions of financial inclusion and see what we can do. The Government publish an annual report on the action taken within that forum.