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Insurance companies turning away younger people in higher numbers

Journalist: Tom Dunstan, FTAdviser

ended 28. January 2025

It has been reported that insurance companies are increasingly saying no a lot more and to younger people.

Younger people are more likely to have disclosed mental health issues; there is a higher incidence of higher BMI among younger people; and insurers are getting more strict on obesity and indicators of diabetes, etc. 

If one says no, they'll all say no.

Is this a phenomenom you have had experience with? Perhaps a client of yours has been turned away for this reason? Is this practice fair in the current climate? How should the protection industry respond?

2 responses from the Newspage community

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Editor
Scott Gallacher
Director at Rowley Turton
Over the years, I’ve noticed a significant shift in the insurance industry. When I first entered the field in 1997, insurers appeared more willing to take on additional risks. However, as competition has driven down the cost of insurance—thanks in large part to independent financial advisers and brokers working tirelessly to secure the best deals for their clients—I suspect insurers now have less 'fat on the bone' to absorb higher-risk cases. This has resulted in more clients being rated or even declined compared to the past.

This shift raises important questions for the protection industry. While it’s understandable that insurers need to carefully assess risks to remain sustainable, the broader implications for those with pre-existing conditions or other health factors deserve greater attention. Striking a balance between affordability and accessibility is vital to ensure that protection remains a viable and inclusive option for all.
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Editor
Dariusz Karpowicz
Director at Albion Financial Advice
Watching insurance companies turn away young people in droves has become a worrying trend, particularly when minor mental health disclosures or slightly elevated BMIs lead to automatic declines. It's creating a protection gap that could haunt an entire generation.
The industry needs to wake up and realise that competing solely on price while maintaining rigid Victorian-era underwriting standards isn't serving anyone well. When one insurer says no, they all follow suit – it's time to break this cycle and create products that actually reflect young people's lives today.