Cyprus Considers Law to End Age-Based Discrimination in Car Insurance

Lawmakers hear claims of “elderly turned into insurance beggars” as industry warns reforms would raise premiums for everyone.

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ANDRIA GEORGIOU

A long-running row over car insurance costs for older drivers flared again in Parliament, with seniors’ groups accusing insurers of pricing people over 70 off the road, and the industry insisting that any legal ban on age-based pricing would force premium increases across the market.

“We’ve turned the elderly into insurance beggars”

Appearing before the House Human Rights Committee, Dimos Antoniou, head of the Third Age Observatory, described an “untenable” situation in which older motorists with clean records face steep premium hikes “for age alone,” leaving many unable to pay and effectively housebound.

Data cited in the hearing underscored the point. According to the Transport Ministry for 2022, drivers over 70 numbered 70,343 (10.5% of all licensed drivers), versus 600,814 under 70 (89.5%). Only 58 seniors (7.2% of those involved in crashes) were recorded in collisions, with responsibility assigned in 32 cases.

Attalidou’s draft laws

Seeking to curb what she calls profiteering, MP Alexandra Attalidou tabled two bills. The first would prohibit direct or indirect discrimination against drivers over 70 in underwriting or pricing, with fines up to €100,000 for violations. The second would require insurers to provide written reasons for any refusal to issue a policy, backed by fines up to €3,500.

Attalidou said the proposals rest on evidence of differential treatment of seniors and argued that risk should be assessed individually, not by age alone. She also plans to write to the European Commission seeking an independent probe into insurers’ profit margins and pricing practices affecting older policyholders.

Insurers warn of market-wide impact

The industry pushed back. Andreas Athanasiades, Director-General of the Insurance Companies Association, told MPs that implementing the bills would necessitate repricing across all policies. Some companies, he said, raise premiums after age 70 or 75 due to higher risk, just as they do for young drivers aged 23-25. Only about 3,000 of the 70,000+ older drivers, he noted, have had to resort to the market’s joint underwriting facility.

If insurers are barred from adjusting premiums by risk factors such as age, Athanasiades argued, the market would have to “change for everyone,” shifting costs onto other customers. The Intermediaries Association likewise cautioned that costs would be passed on, a view echoed by a Finance Ministry official who urged a balance between senior protection and market viability. Industry representatives denied blanket practices of doubling or tripling premiums solely because a driver turned 70, saying multiple factors are considered.

Police and transport officials: risk is not just age

Traffic Department chief Haris Evripidou told MPs seniors feature in 7.2% of collisions, compared with 92.8% among drivers aged 14–69. Road Transport Department director Giorgos Loukas added that older people typically drive less and take shorter trips. Stripping driving rights or pricing people off the road, he warned, undermines self-sufficiency and social life. Risk, he stressed, cannot be judged by age alone.

Regulatory gaps and next steps

The Ombudswoman flagged a legal gap: Cyprus has no statute that governs how premiums can be set by age. She backed Attalidou’s push for individualised pricing. With committees still split, the political question is whether Parliament will outlaw age-based pricing outright, or opt for a middle course, greater transparency, reasoned decisions, and evidence-based risk assessment, without triggering the broad repricing the industry warns about.

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