New report hidden risks of being poor: the poverty premium in insurance (pdf) by Fair By Design and Institute and Faculty of Actuaries (IFoA) finds that vulnerable and low income consumers are increasingly quoted higher premiums for insurance, or are refused cover altogether.
The report shows that one of the main drivers of the poverty premium in insurance is a shift away from a pooling of risk across many different people towards more granular pricing based on an individual’s specific risk factors.
As a result, those who need insurance the most are often priced out or left out, leaving them unable to access the protection insurance provides.
This report also provides practical solutions to ensure everyone has a fair chance of being able to protect themselves and their families.
