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Impact of Assisted Dying Bill on insurance sector

ended 02. December 2024

As discussions intensify around the legalisation of assisted dying following MPs' support for the proposals, there are growing concerns about the potential impact on the life insurance and protection industry. Experts think this decision could lead to stricter underwriting practices, higher premiums, and possible policy exclusions as insurers reassess risk. They also point out the ramifications may extend to broader financial services, prompting a reevaluation of risk management strategies and consumer protections in response to these significant changes. We asked experts what they thought, their views are below. 

4 responses from the Newspage community

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Darryl Dhoffer
Founder at The Mortgage Geezer
The recent vote to legalise assisted dying in the UK could send shockwaves through the life insurance industry. Insurers may have to grapple with a complex web of potential changes including stricter underwriting, whereby insurers may ask more questions about a person's health and views on assisted dying, leading to higher premiums or policy exclusions. There could also be new product offerings, with insurers creating specific policies for individuals considering assisted dying, featuring lower premiums but reduced benefits. However, legalising assisted death could complicate the wider financial services industry, requiring adjustments to numerous products and processes. Ultimately, the impact on the life insurance industry is uncertain, but changes in underwriting, product design and industry practices are almost guaranteed.
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Ben Perks
Managing Director at Orchard Financial Advisers
Underwriters will be busy adapting policies, as insurers will not want to pay out in the event of assisted dying. So, this will change the shape of insurance policies going forward.
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Simon Bridgland
Broker at Charwin Private Clients
If the bill becomes law and gives those with six months' life expectancy the option to expedite their end of life, then new policies will face a significant tweak. Existing policies should align with a claim for terminal illness benefits, and insurers would not want the negative press of declining terminal claims on such a divisive topic. Actuaries will be poring over the wording of what is permitted and tailoring new plans to suit, as they would not wish to pay claims on policies that would not have otherwise fitted the terminal illness provisions. Any change is likely to result in an increase in costs to the consumer if it is portrayed as an additional benefit.
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Justin Moy
Managing Director at EHF Mortgages
The proposed assisted dying process would only be for those deemed 'terminal', and most life insurance policies already have a terminal illness clause for early payment on a claim. Therefore, this wouldn't require a lot of change within the current insurance regime, other than a bit of extra wording and clarity on that definition.