Fine up to €100,000: Cyprus fights age discrimination in insurance

Cypriot MP Alexandra Attalides has proposed introducing strict sanctions against insurance companies that discriminate against drivers based on age. Her initiative aims to protect citizens over 70, who are often denied insurance or face unjustifiably high premiums.

According to the bill, companies that use age as the sole criterion for refusing insurance or increasing the cost of a policy will face fines of up to €100,000. Insurers will also be required to provide documented proof that the pricing is linked to real risk factors, not the client's age.

The second bill obliges companies to provide a written explanation for refusals. Failure to do so may result in a fine of up to €3,500 imposed by the Insurance Commissioner.

Official data shows that in 2022, Cyprus had 70,343 drivers over the age of 70 — about 10.5% of all license holders. Elderly drivers accounted for only 7.2% of road accidents, which, according to Attalides, refutes insurers’ arguments about the "increased danger" of this group.

Andreas Athanasiadis, chairman of the Association of Insurance Companies, said the new measures could lead to higher prices for all customers but admitted that an independent review of market practices is needed. He noted that some insurers already apply age surcharges of 10–30%.

Dimos Antoniou, head of the "Third Age Observatory" organization, supported the MP’s initiative, emphasizing that many elderly drivers face refusals without any explanation. “My mother-in-law simply received an SMS saying: ‘Your insurance will not be renewed’ — without a single word of explanation,” he said.

Currently, Cypriot legislation does not contain provisions directly prohibiting age discrimination in the insurance sector. Existing equality laws mainly apply to employment relations. The parliamentary Human Rights Committee plans to review Attalides’ initiative after receiving legal opinions and feedback from professional associations.