Does Gender Matter Anymore?
As from 21st December 2012, then No. Previously insurance premiums offered for Motor Insurance, Life Insurance and Pensions differed for males and females, due to research into life expectancy and likelihood of road accidents. However, as of 21st December 2012 this will be changed after a ruling from the European Court of Justice (ECJ) that Insurance Companies are no longer to charge different premiums based on gender.
How will this affect the Insurance Premiums?
At this current time there are no definite suggestions on how much the premiums will change, as this has to be decided by the Insurance Companies. Any difference will become effective, at the latest, your renewal following December 2012.
The biggest effect will be for young drivers. The British Insurance Brokers Association (BIBA) states that an 18 year old male who has an “average” car will currently pay in the region of £4,400* a year compared to an 18 year old female who would pay £2,700*. However, the general view is that female premiums may increase by say 30%* and males may fall by 10%. However, as previously stated this will be decided by the insurers.
How will it affect me when I take my pension?
Retirement income specialist, MGM Advantage, estimates that annuity rates will move to unisex rates. The Association of British Insurers (ABI) estimates that this could result in single men facing a reduction in annuity rates of 8%* with single women seeing a rise of 6%*.
How will it affect my Life Insurance?
Women tend to have longer life expectancy and currently will generally pay less for life insurances, however, the ABI estimates that as a result of this ruling males could pay 10%* less and females 20%* more.
What else will affect my premium?
When quoting premiums, they are not only calculated on your gender and this will remain the case. However, other factors are always calculated in, e.g. if you have previous claims, your premium will be higher than someone with no claims, or someone who smokes will be a higher life insurance risk than someone who doesn’t smoke. Age will continue to be a rating factor on all policies.
What does it mean for my Insurer?
The immediate change will be a lot more work for the insurance industry, ensuring all customers are aware, and for changing their systems. However, in the long run it will be one less rating factor to consider when quoting.
For further information to to discuss this please contact us on 01473 408408 or info@wmibl.co.uk
* all the figures quoted here are purely estimates – and should not be relied upon as hard evidence.
