This research from the Institute and Faculty of Actuaries and Fair By Design examines the poverty premium in insurance.
It explores the prevalence, key drivers and impact of the premium on the low-income consumers who experience it.
We have sought to understand and reflect the wide range of perspectives about this important topic. This has included discussions with regulators, civil servants, insurance practitioners and consumer advocates. Through engagement with consumers with ‘lived experience’ of poverty, we have ensured that the interrelationship between the poverty premium and insurance is reflected. We have
made a number of recommendations to mitigate the poverty premium as it relates to insurance. The key objective of this collaborative research is to shine a light on a complex issue and suggest ways to address it constructively.