Despite the fact that claims are dropping, the industry is still charging these travelers more for coverage.
Vacationers in their late 70s and their early 80s are now finding that travel insurance is costing them more than it once did – even more than people who have recently retired – even though the costs associated with covering those individuals on their holidays has been decreasing.
Typically these insurance policies become more costly with age because of a rise in the risk of accidents and health problems.
For that reason, when older customers buy travel insurance, they are seen as having an increased coverage risk than their younger counterparts. Therefore, insurers are increase the premiums that these individuals are being charged. However, a recent claim stats analysis has revealed that people in their late 70s and older are less likely to make a claim than they were when they were younger.
The cost of a travel insurance claim from an older senior is also lower than from someone freshly retired.
According to Fairer Finance, the consumer website that conducted the insurance news analysis, the claims from people in their late 70s and early 80s are less costly and less frequently, but those consumers see higher premiums because insurers say that these consumers have a higher risk in those areas. The founder of the website, James Daley, said that under typical circumstances, it would be expected that the premiums for this insurance coverage should fall.
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However, the analysis showed that the premiums for older vacationers were not only higher, but they were rising. The analysis found that an individual between the ages of 76 and 80 years would pay an average of £80 for their policies. However, comparable individuals who were ten years younger were being charged an average of £68 for the exact same type of coverage. For individuals in their late 80s, the average premiums increased substantially to £132, but at the same time, claims from this group were more frequent and costly, so this appears to have a much more direct connection to actual risk than it did for travels from 76 to 80 years old.
The data from this travel insurance study was gleaned from the Association of British Insurers.