Fairer Finance has tackled unfair and discriminatory pricing models driving a “poverty premium”, and called for the government and regulators to intervene as it made five recommendations.
In a report, Fairer Finance revealed UK insurance companies use up to 400 data points to price home and car insurance premiums, including email domain, birth location, and the time of day consumers apply.
It claimed the majority of these factors have no obvious link to the customer’s underlying risk, and many penalise vulnerable households with the lowest incomes.
The study found significant public concern about current pricing practices, with 72% of consumers believing it is unfair to charge
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