Why are Ageas customers being charged higher premiums after losing a partner?

Ageas claims that joint policyholders are statistically less risky than solo ones, and therefore receive a discount. This discount is forfeited when one of the policyholders dies, resulting in higher premiums for the surviving partner.

How have insurers' pricing practices affected Alison Roper after her husband's death?

Alison Roper was informed that her home and buildings insurance would cost more when her husband died, as the insurer explained that her property is likely to be left less well attended with only one person living there.

What did the Swinton Insurance case reveal about the impact of a spouse's death on insurance premiums?

When the son of a Swinton Insurance customer contacted the company after his father's death, the renewal quote for his mother's home and contents policy increased by £441, from just over £200 to £641. The insurer blamed the system and said they could do nothing about the higher premium.

Home / Business and Economy / Insurers Accused of Charging Bereaved Customers Higher Premiums

Insurers Accused of Charging Bereaved Customers Higher Premiums

15 Nov

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Summary

Widows and divorcees face higher insurance quotes after losing a partner
Insurers claim single policyholders are higher risk, despite no changes
Lack of transparency in AI-driven pricing models undermines consumer trust

Insurers Accused of Charging Bereaved Customers Higher Premiums

In the past few months, many bereaved customers have reported significant increases in their home and car insurance renewal quotes after the death of a partner. According to the article, shortly after her husband's passing, Kay Lawley's car insurance quote went up from £301 to £348, while her home and contents policy rose by almost 12% - from £1,039 to £1,161.

When Lawley inquired about the reason for the increases, the insurer Ageas was unable to provide any explanation beyond "that's what comes up on the screen." The article states that this practice of charging a "bereavement premium" is based on insurers' belief that single policyholders are higher risk, even if the customer's circumstances have not changed.

Divorced and separated couples are also affected by this pricing model, which relies on algorithms that match individuals to the claims history of similar customers. Factors like age, profession, and marital status can influence the pricing, but this approach has been widely criticized as insensitive, especially for those adjusting to the loss of a partner.

The article highlights the lack of transparency in insurers' pricing practices, with the increasing use of AI-driven models making the process even more opaque. Industry groups and consumer advocates are calling for more regulation and oversight to ensure fairness and empathy in how insurers calculate premiums, particularly for vulnerable customers.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.