What is changing?
The European Court of Justice is to ban the use of gender, as a rating factor, in the pricing of insurance policies from 21 December 2012. This means that, from that date, insurance companies will no longer be able to offer differential pricing rates for males and females.
What does it mean to you?
If you are considering taking out a new insurance product, depending on the type, it may be better in some circumstances to act before the deadline. The Gender Directive is likely to impact on a range of new insurance products e.g. car insurance, annuities, life cover. The full impact on premiums and ratings is currently unknown and may vary by product provider. For example, a male purchasing an annuity may receive a lower annuity income after 21 December 2012, whereas a woman purchasing an annuity after 21 December may receive a higher annuity income. For life cover, premiums may increase for female lives and reduce for male lives after 21 December. This is, of course, dependent on each individual’s circumstances and we urge all customers to seek independent financial advice or comparison quotations before making decisions.
Existing policies are less likely to be affected, although if they are reviewed or renewed there may be an impact on the level of future premiums. However, if you request an amendment to your policy, future premiums are more likely to be on Gender neutral rates.
As always, we would encourage our customers to seek independent financial advice when making decisions regarding their financial products.
Gender neutral pricing fact sheet