The European Court of Justice ruling on the gender directive comes into force later this year. This means that gender can no longer be used as a risk factor for calculating certain insurance premiums.
While the insurance companies are all clambering around and overworking thier actuaries and marketing people to see what they have to do, some points are straight forward enough. The cost of life cover for females taken out after it comes into force will increase. The cost of car insurance for females will increase. Some other covers like income protection could increase for males.
How the insurance companies deal with these increases remains to be seen. Some may absorb some of the cost or balance between genders but to do this, they have to be quite confident what their gender mix if business will be going forward.
Either way, it’s probably safe to say that if you have not reviewed your protection requirements for over 3 years, now is the time to do it, especially if you have a birthday coming up in the next few months as once you pass a birthday, your premium for the whole term of a plan will be dearer. Feel free to contact me if you have any questions.
(I think we have an ad in this week’s Drogheda Leader near the propery pages with contact details.)
Not for any guaranteed term plans Sue, the premiums on those are guaranteed for the full term. With some older type unit linked policies which have premium reviews after 10 years and then every 5 years, at premium review stage there could be an impact but even without the ruling, those type of plans can increase quite sharply. If anyone is unsure which type they have, feel free to contact me.