Association of British Insurers have published consideration points for consumers this week regarding the EU gender ruling.
The ruling which will come into force in less than a month will mean that insurance companies will no longer be able to take gender into account when calculating an insurance premium. Currently women are seen as a lower risk to insurance companies compared to males, but this will now change. Women are expected to see the biggest difference, as it is estimated that they could see their premium increasing by 25% compared to men who could see a 10% fall.
ABI have stressed to consumers that the insurance market will remain competitive despite the ruling. Consideration points have been published for those who are expected to be affected to prepare for the changes that will occur.
Among the points are the policies which will be affected such as motor insurance, life cover, critical illness cover, income protection and annuities. Consumers are also being urged not to focus on prices but to take out policies that are suitable for their needs.
Adeola Ajayi, spokesperson at the Association of British Insurers, said: “We lobbied against this ruling for nearly a decade. Insurance is all about matching price to risk and we wanted to retain the right to offer customers fair premiums and benefits based on risks linked to different genders.
“Insurers are now busy working hard to adjust their systems and remain committed to offering premiums and benefits that reflect risk as accurately as possible, despite having to ignore decades worth of data. The UK insurance market is competitive, with customers able to shop around many insurers, and it will remain competitive, gender or no gender.”
To read the full list of the ABI consideration points click here.
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By Amanda Bainbridge