Trade body defends underwriting practice following attack from former Justice Secretary
The ABI has thrown is support behind insurers using where people live as underwriting criteria following Jack Straw’s attack on post-code redlining.
The former Justice Secretary told a Brokerbility conference yesterday that insurers could lose their right to underwritie in motor if the practice continued.
Post-code redlining is where insurers hugely hike up premiums or even ban customers on where they live.
He said constituents in Blackburn, which has some of the poorest neighbourhoods in the North West, were being hit the hardest by post-coding.
Straw also believes it could exacerbate racial tensions.
However, an ABI spokesman leapt to the defence of using where a person lives as underwriting criteria. He said the trade body had already had amicable discussions with Straw about postcoding.
He said: “For motor it is only right to take into account where you live. But it is not the only criteria, it is one of many that insurers use.
“Insurers will always try to make the risk as fairly priced as possible.”
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