Insurance market failing vulnerable consumers: IFoA report

‘Poverty premium’ growing as obstacle for those from low income backgrounds

clock • 2 min read

The insurance market is failing vulnerable consumers and those from low income backgrounds, according to a new report by the Institute and Faculty of Actuaries (IFoA) and Fair by Design (FBD).

These people are increasingly being quoted higher premiums or face being refused altogether, the report found. This ‘poverty premium' - referring to the extra costs incurred by low-income households when purchasing the same or similar essential goods and services as households on higher incomes - is largely driven by factors out of people's control, such as where they can afford to live or their medical history. The shift away from pooling of risks across many difficult people towards more granular pricing based on individuals has also exacerbated the increased premiums The report ...

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Individual Protection

Fifth of cancer patients say wait times are too long

Fifth of cancer patients say wait times are too long

National Cancer Patient Experience Survey

Jaskeet Briah
clock 18 July 2025 • 1 min read
L&G updates support on adviser platform

L&G updates support on adviser platform

New webpage launched

Jaskeet Briah
clock 18 July 2025 • 2 min read
Uptake for NHS health checks hits record low for middle-aged adults

Uptake for NHS health checks hits record low for middle-aged adults

40% went on to get their check

Jaskeet Briah
clock 14 July 2025 • 2 min read