Ruling by The European Court of Justice on Gender affects Insurance Premiums

New EU Directive on Gender Neutral Insurance Pricing

From December 2012, gender cannot be considered by Insurers’ when calculating individual premiums and benefits, under a European Court of Justice ruling.  Although British Insurers’ have argued against this for nearly a decade, they are now making the necessary changes to implement this ruling.

Historically, many women have enjoyed lower car insurance premiums as statistics have demonstrated that women are a ‘lower risk’ category.  This will no longer be the case.

As well as motor insurance, critical illness cover, life insurance, income protection insurance and other products such as retirement plans have previously used gender as one factor when setting premiums and benefits.

The Association of British Insurers’ advise that if you have an existing insurance policy, it should not be affected until it is due for renewal. If you have a policy with a renewal that falls around 21 December 2012 or intend to purchase a retirement income product,  it may be worth speaking with your insurer, broker or an independent financial adviser for more information and guidance.