Which insurance types will be affected by the European Court of Justice's ruling to eliminate gender from risk assessments for insurance?
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Life insurance, car insurance, and private medical? What other insurance types used gender to determine the premium?
MoneyTalks
1 year ago
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
annuities - both pension linked and standalone will be effected as they are underwritten with reference to life expectancy - as women tend to live longer they have had lower rates offered and men higher rates.
health insurance (private medical cover) and income protection, critical illness cover, even home insurance has an element of underwriting risk based on gender (although not often admitted by insurers).
essentially this ruling will completely rewrite the rules on insurance and not necessarily for the benefit of the consumer.
dont suddenly expect that boy racers will get cheaper car insurance or that women will get cheaper critical illness cover. it will cost the industry (and by its virtue, the consumer) a small fortune to udpate systems, reprint paperwork, and inform all policyholders of the changes that will come in at renewal time....
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health insurance (private medical cover) and income protection, critical illness cover, even home insurance has an element of underwriting risk based on gender (although not often admitted by insurers).
essentially this ruling will completely rewrite the rules on insurance and not necessarily for the benefit of the consumer.
dont suddenly expect that boy racers will get cheaper car insurance or that women will get cheaper critical illness cover. it will cost the industry (and by its virtue, the consumer) a small fortune to udpate systems, reprint paperwork, and inform all policyholders of the changes that will come in at renewal time....
