The government will publish proposals within weeks which could stop insurers slamming pensioners with higher travel premiums.
The Treasury is currently considering whether there was a need to include the stringent proposals in its Discrimination Law Review this year.
The move could force insurers to stop hitting the elderly with higher premiums for both holiday and leisure cover.
Labour MP for Stroud David Drew is demanding that Chancellor Gordon Brown introduce legislation to end discrimination where insurers can impose additional premiums.
Ed Balls, economic secretary to the Treasury said the government was considering whether there was a case for "prohibiting age discrimination" in the insurance industry, among others.
He said: "We are considering whether there is a case for prohibiting age discrimination in the provision of good, facilities and services, including insurance."
However, he added: "The government does not prescribe terms and conditions that insurance companies may set when offering insurance, nor does it intervene in the commercial decision of insurers.
"As a rule, insurers use their claims experience and other industry-wide statistics to set the terms on which they offer insurance cover."
