Bereavement Penalty: Insurers Hit Surviving Partners with Premium Increases After Death of Spouse or Partner.
For many, the loss of a loved one is already a devastating blow. But for those who have lost their partner due to bereavement, receiving an insurance premium increase can be nothing short of crushing. In recent cases, several families have come forward sharing heart-wrenching stories of how insurers are hitting them with significant hikes in premiums after the death of a spouse or partner.
One such case involves Kay Lawley*, who received renewal quotes from her home and car insurance provider, Ageas, shortly after her husband's passing. The quotes showed an increase of up to 15% on both policies, leaving her stunned and dismayed. Her car insurance quote jumped from £301 to £348, while her home and contents policy rose by almost 12%, increasing from £1,039 to £1,161.
When Lawley contacted Ageas to inquire about the reason behind the price hike, she was met with a flippant response that the decision was based solely on "what comes up on the screen." Lawley argues that this is unfair, as nothing else has changed since her husband's passing. Her income may be reduced, and she may not have the emotional bandwidth to argue over prices at a time when she needs support.
The issue of bereavement penalties is not unique to Ageas; several other insurers, including Swinton and another unnamed provider, have faced criticism for increasing premiums after the death of a partner. The little-known policy that has been used by these insurers relies on algorithms that match individuals to customers with similar claims histories, taking into account factors like age, profession, and marital status.
However, experts argue that this approach can be particularly insensitive at a time when families are grieving. "These cases highlight the lack of humanity that sits within many insurers' pricing algorithms," says James Daley, managing director of Fairer Finance. "Even if there is a statistical basis for these decisions, they lack sensitivity – and it's all the worse that insurers are unable to explain the reasoning to customers because their pricing models are viewed as a trade secret."
Fairer Finance is calling on government regulators to insist on more transparency from insurers. The campaign group argues that opaque pricing practices are undermining public trust and that the increasing reliance on artificial intelligence to calculate premiums is making things worse.
In response to criticism, Swinton has apologized for the distress caused by their policy, offering compensation to customers affected. Ageas has also acknowledged its process failure in Lawley's case, refunding her additional premiums and sending a bouquet of flowers. However, Lawley will lose the discount on her policies when they are next renewed, which she believes is unfair.
These cases demonstrate that even in a world where technology and algorithms have improved our lives, there is still room for humanity and compassion. As Kay Lawley so poignantly puts it, "I had hoped that the world might have moved on from its bias towards coupledom, but clearly not."
For many, the loss of a loved one is already a devastating blow. But for those who have lost their partner due to bereavement, receiving an insurance premium increase can be nothing short of crushing. In recent cases, several families have come forward sharing heart-wrenching stories of how insurers are hitting them with significant hikes in premiums after the death of a spouse or partner.
One such case involves Kay Lawley*, who received renewal quotes from her home and car insurance provider, Ageas, shortly after her husband's passing. The quotes showed an increase of up to 15% on both policies, leaving her stunned and dismayed. Her car insurance quote jumped from £301 to £348, while her home and contents policy rose by almost 12%, increasing from £1,039 to £1,161.
When Lawley contacted Ageas to inquire about the reason behind the price hike, she was met with a flippant response that the decision was based solely on "what comes up on the screen." Lawley argues that this is unfair, as nothing else has changed since her husband's passing. Her income may be reduced, and she may not have the emotional bandwidth to argue over prices at a time when she needs support.
The issue of bereavement penalties is not unique to Ageas; several other insurers, including Swinton and another unnamed provider, have faced criticism for increasing premiums after the death of a partner. The little-known policy that has been used by these insurers relies on algorithms that match individuals to customers with similar claims histories, taking into account factors like age, profession, and marital status.
However, experts argue that this approach can be particularly insensitive at a time when families are grieving. "These cases highlight the lack of humanity that sits within many insurers' pricing algorithms," says James Daley, managing director of Fairer Finance. "Even if there is a statistical basis for these decisions, they lack sensitivity – and it's all the worse that insurers are unable to explain the reasoning to customers because their pricing models are viewed as a trade secret."
Fairer Finance is calling on government regulators to insist on more transparency from insurers. The campaign group argues that opaque pricing practices are undermining public trust and that the increasing reliance on artificial intelligence to calculate premiums is making things worse.
In response to criticism, Swinton has apologized for the distress caused by their policy, offering compensation to customers affected. Ageas has also acknowledged its process failure in Lawley's case, refunding her additional premiums and sending a bouquet of flowers. However, Lawley will lose the discount on her policies when they are next renewed, which she believes is unfair.
These cases demonstrate that even in a world where technology and algorithms have improved our lives, there is still room for humanity and compassion. As Kay Lawley so poignantly puts it, "I had hoped that the world might have moved on from its bias towards coupledom, but clearly not."
This whole thing is just wild, right? Like, I get that insurers need to make a profit and all, but hitting people with premium increases after they've lost their partner? That's just cruel. They're essentially saying "oh, you lost your spouse, good for you, now pay more". 
It's like, don't they know how painful it is already? 
And the fact that Ageas was all flippant about it? Unbelievable. I mean, what even is that supposed to do? Make Kay Lawley feel better? Newsflash: it doesn't work that way. 
. Like, how can an algorithm possibly understand what a person is going through when they lose someone? It's just not human. We need to start treating our insurers with more compassion, ya know? 
. Maybe we can get some real change going on here. 
I cant believe these insurance companies are doing this to people who just lost a loved one 
. Like, 15% increase in premiums is already so much, but when you're grieving and can barely take care of yourself, it's like they're rubbing salt in the wound 
. Like, I get that they need to calculate premiums and all, but come on, a 15% increase right after someone loses their partner? 
That's just heartless 
? That's just not good enough, you know? I mean, can't we have some empathy and understanding in our insurance policies? 
when their partner passes away... like, what's the point of having an algorithm match them to someone who's just grieving? it's all about cutting costs and making a buck off vulnerable people. I mean, can't they just show some basic human decency for once? a 15% increase on top of already crippling bereavement payments is just too much. the fact that they're trying to pass this off as 'just business' is so insincere 
. She didnt do anything wrong, and yet she gets slammed with these huge premium hikes. It just feels so unfair 
insurers are literally taking advantage of ppl who are already down on their luck after losing a loved one. like whats next? increasing prices on ppl's funeral expenses or somethin'?! 
its all about makin money off ppl when they cant even afford to grieve in peace. anywayz, i think its high time we had more transparency from insurers and less of this 'algorithms' nonsense. just be real and upfront with ppl, dont make them feel like they're just a number in some kinda spreadsheet. 
Fairer Finance needs to keep pushing for transparency from these companies. We deserve better 
.
. The fact that Ageas just gave her a bouquet of flowers but still made her pay more after was just a Band-Aid solution 
. and can we please do better than this?
.
. I mean, come on, a 15% increase just because someone lost their partner is ridiculous! It's like they think the person grieving isn't already struggling enough.
? That's not exactly reassuring... 
It's just so inconsiderate, especially when families are still trying to pick up the pieces after a loss.