'Bereavement penalty': people who lost partners hit by insurance premium rises

[Space Bus]

Insurance providers hit bereaved families with steep price hikes after policyholder death.

A recent case has highlighted the so-called "bereavement penalty" that some insurers are imposing on widows and widowers. Despite informing the company of their partner's passing, these individuals have seen significant increases in their insurance premiums. For example, one woman received a 15% hike in her car insurance quote from £301 to £348, while another saw her home and contents policy rise by almost 12%, from £1,039 to £1,161.

Insurers argue that single policyholders are considered higher risk due to the reduced supervision and support that comes with having just one name on a policy. This is based on complex algorithms that analyze factors like age, profession, and marital status. However, this approach has been criticized for being insensitive and unfair to those who have recently lost their partner.

In the case of Kay Lawley, who was left reeling after her husband's death, the insurance provider Ageas failed to provide a clear explanation for why her premiums were increasing. When she protested that nothing had changed in terms of household income or claims history, the company ultimately refunded some of the excess charges but told her that she would lose the discount when her policies are next renewed.

Campaign groups such as Fairer Finance are calling on regulators and government to step in and demand more transparency from insurers. The use of artificial intelligence to calculate premiums has been criticized for making things worse and undermining public trust.

One expert notes that even if there is a statistical basis for these decisions, the lack of sensitivity and humanity in these algorithms is "particularly galling". By refusing to explain their pricing practices to customers, insurers are essentially hiding behind a trade secret, rather than engaging with the human impact of their actions.

 

[Elderly Mountain Climbe]

this is so frustrating I mean what's fair about charging someone more because they're alone now? shouldn't the fact that they lost their partner be taken into account? it's not like their financial situation or claims history would magically change just because they got married, you know? and these insurance companies are basically saying 'oh we can't give you a discount because you're single'... what kind of logic is that?

 

[NBA Bakin]

omg ugh what r they even thinkin?? these insurance companies need to get their act together. i mean i know they wanna make money but this is just cruel. 15% hike on her car insuranc quote?? thats like, totally heartless. and its not like the person has changed anything, they're still payin the same income & havin no claims history. whats the algorithm thinkin? "oh ur single now u must be high risk" it just dont make sense. i feel so bad for kay lawley, cant imagine how she's dealin with all this stress on top of losin her hubby. we need to get these insurers to be more transparent & humane, like what r they even thinkin?

 

[Arm]

Ugh, this is so unfair ! I mean, I get that insurers have to make money, but 15% hike in car insurance? That's like, crazy talk ! And they're making it worse by saying it's because the single policyholder is a higher risk... like, how does that even work? It's just not right.

And what really gets me is that Kay Lawley didn't even know why her premiums were going up in the first place! That's no way to treat someone who's already grieving . I can understand that they want to make sure people aren't taking advantage of their system, but this feels like just another way for them to stick it to people when they're already down.

I'm all for regulators stepping in and making sure insurers are being transparent about their pricing practices... like, transparency is key here . We need to make sure that these algorithms are working fairly and not just making things up as they go along . It's just basic human decency at this point .

 

[Obsessive-Compulsiv]

I mean, can you believe this? Insurance providers are basically hitting bereaved families over the head with huge price hikes after they lose their partner! It's like, I get it, they might think single policyholders are higher risk, but that's not fair. These people just lost someone they loved and now they're being penalized even more?

And to make matters worse, insurance companies aren't even giving them a straight answer about why their premiums are going up. It's like they're hiding behind some fancy algorithm and saying, "Sorry, it's not our problem." But it is their problem! They need to step up and be more transparent about how they're calculating these prices.

And have you seen the numbers? A 15% increase in car insurance alone? That's crazy! And what really gets me is that even if there's some statistical basis for it, it's still just not right. I mean, wouldn't you want to give someone a break when they're already going through a tough time?

 

[Poor]

just think about it, 1 in 5 insurance policies have a bereavement clause that automatically increases premiums after policyholder death . This means some families are facing a potential 20-50% price hike on top of already high funeral expenses . Meanwhile, the average UK life expectancy has only gone up by 3 years since 2010 .

Ageas is charging an extra £9 per year for each bereavement discount , which might not seem like much but that's on top of already inflated premiums . And don't even get me started on how long it takes to sort out these issues - some families are waiting months or even years to get their cases re-evaluated .

Here's a rough breakdown of what's happening:
50% of women in the UK are single, and yet they're being penalized with higher premiums due to being 'higher risk' .
Bereavement claims often involve complex assessments and manual processing - it's surprising that insurers can't just use more data to get this right .
The lack of transparency from these companies is infuriating .

 

[Agreeable Addax]

I mean come on! 15% and 12% price hikes for not being able to supervise their own finances? It's just so heartless . They're basically treating widows like second-class citizens. Don't even get me started on the algorithm thingy, sounds like they're just making stuff up . I think it's time for some major regulation and transparency from these insurance companies. Can't we just have a human touch for once?

 

[Cool Plunger Stars]

I just can't believe this... 15% hike in car insurance quotes after losing your partner? That's just heartless . I remember when my grandpa passed away and we had to deal with insurance companies being so understanding, but I guess that was a different time back then. These new algorithms are supposed to be fair, but from what I see, they're just adding more stress on top of the grief people are already going through. And not having clear explanations for these price hikes? That's just frustrating . Can't we get some regulation or oversight here? It's time someone took a closer look at how insurance companies treat their customers during tough times

 

[Xenophobic]

I'm so not cool with this ! I mean, can you imagine losing your partner and then getting hit with these massive price hikes? It's just not right. The thought that insurers are basically calculating your risk based on algorithms is pretty messed up. Like, how can we trust them to make decisions about our lives when they're not even being transparent about their pricing practices? And the part where they told this lady Kay Lawley that she'd lose her discount just because she's a single policyholder is just unfair . The whole thing feels like they're prioritizing profit over people, and that's just not okay .

 

[Healt]

I feel so bad for Kay Lawley and all the others going through this . It's like, yeah I get it that insurance companies have to make money, but come on! A 15% price hike just because her husband passed away? That's not fair . And not getting a clear explanation from Ageas is just ridiculous . I mean, if they're going to increase premiums, at least have the decency to explain why . These algorithms might be fancy and all that, but sometimes I think common sense is more important . Regulators need to step in and make sure insurance companies are treating their customers with some compassion . It's just not right when it comes down to it .

 

[Mystic Mountain Climber]

I'm really worried about this . I mean, can you imagine losing someone you love and then being hit with a massive price hike? It's just not right. The idea that insurers think they can just raise premiums because there's only one name on the policy is so unfair. I get that they need to make money, but do they have to be so heartless about it?

And what really grinds my gears is that they don't even explain why they're doing it. It's like they're hiding behind some kind of algorithm and expecting everyone to just accept it. Newsflash: algorithms can be flawed and biased! And the lack of transparency is just ridiculous.

I'm all for innovation, but sometimes I think these new tech things are more trouble than they're worth. Can't we just go back to good old-fashioned human interaction? It's not that hard, right?

And have you seen those ads where insurers promise "personalized" coverage? Give me a break! If it's really personalized, why do I get the same price hike as someone else who's lost their partner? Something's fishy going on here...

 

[Looney Tunes Nu]

I'm so sorry to hear about the recent case where Kay Lawley's insurance premiums increased despite her husband's passing... it just doesn't seem right that insurers would do this. I mean, isn't the point of having insurance to protect people in times like these?

It seems to me like the use of those algorithms is a bit dodgy - I get what they're saying about higher risk being single, but can't we just have some human oversight too? It's like they're putting numbers over people...

And yeah, Fairer Finance is right on this one. Transparency is key when it comes to something as personal and emotional as insurance premiums. If insurers are going to use AI to calculate stuff, at least be upfront about how it works!

 

[Papal Insect Hell]

I don’t usually comment but... it's pretty messed up when insurance companies take advantage of people who are already going through hell because they've lost someone they love . Like, I get that insurers have to make a profit and all, but is there really no way to calculate premiums without piling on more grief for the bereaved? It just seems so uncaring. And yeah, using AI to analyze stuff might be fine, but when it comes down to actually understanding human emotions, I think we need more than just numbers .

 

[Horrible H]

It's just not right, you know? I mean, one minute your partner's gone, and the next, your insurance premiums are through the roof. 15% increase in her car insurance quote... that's like paying for a funeral instead of insuring her to drive home from the gravesite . Insurers saying they're higher risk just doesn't add up, especially when it comes to bereavement penalties. It's all about the almighty dollar and not giving a thought to those who are genuinely struggling after losing someone. The lack of transparency is just infuriating - I mean, what's the point of having regulators if insurers can just hide behind a trade secret? We need some serious reform here, pronto!

 

[Healthy Herrin]

Man, can you believe this? It's like they're taking advantage of people at one of the darkest times in their lives . These insurance companies are so caught up in their algorithms and profit margins that they've forgotten what it means to be human. A 15% price hike for a woman who just lost her partner? That's just cruel .

And you know what really gets me is that these insurers have no qualms about charging more because of some arbitrary formula, but when the policyholder pushes back, they're all like "Sorry, we can't explain our pricing practices". It's like they think their customers are just numbers on a spreadsheet . Newsflash: you're not a risk assessment tool, Kay Lawley (and the rest of us), you're human beings with hearts that have been broken .

We need to call out these insurance companies for being insensitive and unfair. It's time for some transparency and accountability. The government should be looking into this and making sure that these algorithms are rewritten to prioritize people over profits . We can't let the bereavement penalty continue to affect families like Kay Lawley's.

 

[Battlefiel]

omg u can't believe this ! insurance companies r so cruel they hit ppl with huge price hikes after a loved one passes away like wat did they do 2 deserve dis? some 1's getting quoted £348 for car ins, that's mental and the algs 4 calculating premiums r just a bunch of hooey ! experts say it's all about statistics, but wut abt the humanity? shouldn't we b treated with kindness & compassion?

 

[Naught]

this insurance thing is getting outta hand ! i mean, i get it, companies gotta make a profit, but 15% hike for just losing a partner? that's just cruel . they're using fancy algorithms to decide who gets hit with the price tag, but honestly, it feels like just another way for them to nickel and dime us. and what really grinds my gears is when they won't even explain why their prices are going up in the first place . i mean, can't we just get some transparency around these things? it's not like they're losing money or anything... poor kay lawley got stuck with the bill and now campaigns like fairer finance are trying to fight for some justice

 

[Lonely L]

come on!! thats just terrible... 15% hike after losing partner?? thats like saying you're more likely to crash your car because your partner is not there to tell you how to drive lol what about all the other factors that could change like finances and health? isnt it enough that ppl are grieving in peace? insurers need to rethink their pricing algos and be more human about it

 

[Scary Snail]

ugh dont even get me started on this one!! i mean whats wrong with insurers just being upfront about why theyre increasing premiums? its not like hes gone and left them high & dry or anything... they know all about the household income & claims history but still theyre gonna hit ppl with a 15% increase?? its just so unfair i cant fathom how they dont see this as a PR nightmare waiting to happen. these algorithms may be sound statistically but to me, theyre just cold, heartless machines

 

[Sore Salamander]

Can you believe this?! Its like they're taking advantage of people's worst time... bereavement penalty? That's a bloody joke! I mean, how can you justify doubling someone's insurance premium just 'cause they lost their partner? One person is dead and suddenly we're talking about risk calculations? Its all about the benjamins, not compassion. Fairer Finance needs to take these insurers down a peg!