UK insurance customers are being urged not to purchase on price alone, with new ‘gender-neutral’ premium pricing set to take effect in three months.
Following a ruling from the European Court of Justice in March 2011, insurance pricing for general and life products across the UK and Europe will become gender-neutral from 21 December 2012 (see: Male/Female Insurance Rates to Be Banned).
The Association of British Insurers (ABI) has issued a guide for consumers on the impact of the new regulations, appealing to customers to buy products that are suitable for their needs.
It is important to remember that gender is one factor of many used by insurers
“We know that there will be some differences in pricing and this will become clearer as the rule beds in,” said Otto Thoresen, ABI Director General.
“It is important to remember that gender is one factor of many used by insurers, and we hope our guidance will encourage customers not to focus on price alone, but think about their needs and shop around for products that are most suitable for them.”
Mr Thoresen said that insurers and the UK Government fought for nearly a decade to retain the right to offer premiums and benefits priced as accurately as possible by considering risks linked to gender.
“But now that the battle is over, the industry is focused on preparing to give customers ‘gender-neutral’ rates that are as fair as possible,” he said.
The ABI’s guidance paper asks consumers to consider whether they would be better off purchasing a policy before or after the new ruling takes place, suggesting some existing customers may want to cancel their policies and repurchase after 21 December. The guide also recommends consumers seek advice from a financial adviser or insurance broker before making their decision.
Are specific male and female cover now banned too?
What a terrible idea this is!!
wot a joke. next the PC crowd will be saying that you cant discriminate because you smoke or that youre fat.
will the European Court of Justice now allow men to also compete in womans events at the olympics? why stop at just insurance. will they ban separate male & female toilets – after all tha could be discriminatory as well? where does it end?
What can I say.
I thought it was a proven fact that Men are from Mars & Women are from Venus!
Interesting world world we now live in Master Jack!
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