 | | Older tourists take a morning stroll along the beach
at Playa del Ingles in Spain. | |
Despite an ageing population, companies are in no rush to extend policies. Older Finns in the market for travel insurance are in a weaker position compared to other Nordics in their cohort. Many insurance companies will not even consider an applicant for extended-period coverage if he or she is more than 70 years of age. This is despite the fact that in the last few decades older people have become healthier and more well-travelled. They are also more likely to travel for longer periods, many opting to spend most of the winter in warmer climes. The upper age limit for year-long plans is usually between 68 and 70 years of age, although a couple of firms do offer coverage to customers as old as 80 or 86. In other Nordic countries, however, the upper age limits tend to be higher. While companies elsewhere in the region are responding to changing demographics, Finnish insurance companies do not appear to be very eager to follow up the trend, even if they do claim to be keeping an eye on slowly increasing demand. This is somewhat ironic given that Finland's population is ageing at a faster rate than anywhere else in the Nordic countries. The issue is not one of regulation or convention, Lea Mäntyniemi points out, but rather of the specific policies of each company. Mäntyniemi, a manager representing the Federation of Finnish Financial Services, emphasises that “the Federation has no role in deciding this matter.” IngoNord, one of the few Finnish companies with a comparatively high upper age limit of 86, provides coverage to clients under that age without requiring that they undergo a special medical examination. Their policy will cover up to 90 days of travelling on any one trip. The company explains that they adjusted their age limit upwards in response to public demand, which has been widespread and vocal among their older customers. They report that they have yet to encounter problems with the new regime. Older customers “risky” IngoNord are unique, however. The conditions on policies granted to older customers almost always include a demand for documentation of a recent medical examination, especially for trips lasting a number of months. Fennia, another company, currently has an age limit of 70 years, the most common among Finnish insurance firms. Product manager Tarja Luoto states that the firm has no intention to adjust its age limit during the next 12 months. ”We've certainly thought about it, but we'd really have to take a good look at the risks involved. Older customers are more likely to have certain chronic diseases, for example.” Some firms do offer more limited, single-trip policies to customers as old as 86, but many do not have an upper age limit on this policy, or even this policy for that matter. Moreover, extended period or ”continued” coverage often works out cheaper than one-off policies, so even those companies which are willing to insure older customers are effectively making them pay more for the service. Leena Jussila – STT
Matthew Parry – HT
Timo Jaakonaho - Lehtikuva |
