Insurance ECJ Gender Ruling

March 31st, 2011

If you are not already aware, the European Court of Justice (ECJ) has introduced a ruling that will no longer allow the use of gender as a factor in determining the level of risk for insurance – all insurance.

The resultant effect will be that males and females will have a uniform premium. Traditionally males have paid more for life insurance and women have paid less simply based on mortality statistic. This is factual. The ECJ ruling is contrary to historical evidence showing that being male or female has a bearing on frequency and size of a claim.

All types of insurance are to be effected including life insurance.

Biba, the British Insurance Brokers' Association, said: "Effectively, females will now pay a cross-subsidy for males on their insurance premiums." The ABI suggests that females will see a 20% rise in the cost of life insurance while men could benefit from a fall of about 10%.

Lifebroker thinks that in the whole this ruling is extreme as the fact that females live longer than males is a biological one.