Insurance: Low Incomes

(asked on 15th November 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps his Department is taking to help make insurance coverage more accessible to low-income households.


Answered by
John Glen Portrait
John Glen
Paymaster General and Minister for the Cabinet Office
This question was answered on 23rd November 2021

The Government wants to ensure that people, regardless of their background or income, have access to useful and affordable financial products and services.

There are wider initiatives that low-income households will benefit from when accessing insurance. For example, from 1 January 2022, new FCA rules for home and motor insurance will require insurers to offer renewing customers a price that is no higher than they would pay as a new customer.

Additionally, since 2012, the Government has engaged in a voluntary signposting agreement with the Association of British Insurers (ABI) and the British Insurance Brokers Association (BIBA) for motor and travel insurance. Where an insurer or insurance broker cannot offer cover due to upper age limits on their policies, it will refer the customer to another insurer who can provide cover, or an appropriate signposting service.

The Government also continues to engage closely with the sector, including the insurtech sector, on products available in the market to ensure that consumers can benefit from a wide range of products suited to their needs.

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