Does Levelling Up Create an Opportunity For Insurers?

Some reaction to the Government’s push on their `Levelling Up’ agenda;

Responding to the UK Government’s plans on levelling up, Louise Pryor, President of the Institute and Faculty of Actuaries, said:

“It is right that today’s White Paper includes a focus on widening opportunity, but it is also important that the levelling-up agenda increases individuals’ financial resilience. As set out in our recent joint report on the poverty premium in insurance, many vulnerable and low-income consumers are offered unaffordable insurance premiums, or refused cover altogether. Such consumers are often deemed by insurers to be ‘higher risk’, and this can be due to a range of factors. However, many of these factors can be outside the individual’s control, such as where they live. This then leads to financial exclusion and a lack of financial resilience amongst those who may need it most.

“Greater financial resilience will help to empower individuals to benefit from levelling-up, and help tackle financial and wider exclusion. We recommend that the Government should consider measures to help with the delivery of a minimum level of insurance protection, providing lower income and vulnerable customers with access to an appropriate financial safety net.

“From investment in infrastructure and understanding regional health inequalities, to ensuring individuals are able to retire comfortably or access social care services, actuarial expertise and skills will be critical if progress is to be made on the various issues highlighted in the White Paper.”