With three months to go until the European Court of Justice ban on insurers taking a person's gender into account when calculating premiums and benefits, the Association of British Insurers has published guidance for consumers.
Gender has always been one factor in assessing risk in insurance, with different risks linked to gender being taken into consideration to calculate premiums and benefits. But a ruling from the European Court of Justice in March 2011 means this will all change by 21st December 2012, as insurance pricing becomes 'gender-neutral'.
The ABI consumer guidance covers the main insurance products set to be affected by the gender ruling - motor insurance, life, critical illness and income protection insurance as well as retirement products such as annuities and income drawdown. And while people will see some changes to pricing, the ABI is urging customers not to focus on price alone, but make sure they shop around and buy products that are suitable for their specific needs.
Otto Thoresen, Director General at the Association of British Insurers said: "We know that there will be some differences in pricing and this will become clearer as the rule beds in. 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."
Press release
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