Many insurance products could be forced off the market if new legislation goes ahead, firms have warned.
The Association of British Insurers (ABI) has spoken out against some of the measures proposed by the government for the upcoming Equalities Bill.
Minister for equality Harriet Harman suggested yesterday that the upper age limits currently imposed by many UK insurance firms, including car insurance providers, would be outlawed by the upcoming legislation as an anti-age discrimination measure.
However, the ABI - representing the firms - said that the limits were used because of the proportionally higher likelihood that older people stand of making insurance claims, and suggested that some cover could be withdrawn from the market entirely as a result.
Nick Starling at the ABI said: "The government, organisations that represent older people and the insurance industry agree that insurance premiums should reflect the risk presented by individual consumers. We are engaged in discussions with the government on the proposed Bill, which we hope will endorse this important principle."
He added: "Legislation, no matter how well-intentioned, could have the unintended negative consequence of forcing some insurers to withdraw certain products altogether, reducing competition and availability and pushing up prices for all age groups."
A study conducted last year by charity Age Concern showed that around 92 per cent of UK insurance firms enforced upper age limits.
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