EU Gender Directive on Insurance coming into force this week
The EU Gender Directive is coming into effect this Friday, the 21st December 2012. From this date, insurance companies will no longer be allowed to use gender in calculating the cost of a person’s premium. This will mean pricing changes for the sexes depending on the type of insurance being sought. For your benefit, we outline below the consequences this will have for pricing on certain types of insurance:
Women, in particular young women, will end up paying more than what they have been currently paying for car insurance. Increases of up to 45% could be imposed on women between the ages of 17 and 30. However, older women will only face modest rises on the cost of insuring their car. On the other hand, their older male counterparts won’t see much change to premiums. But, young males, who traditionally pay much more for cover than any other motoring group, could see substantial drops on their premiums from this Friday.
Like with Car Insurance, women face increases to their Life Insurance premiums while premiums for men could go down. Women currently pay less for life cover thanks as they live longer than their male counterparts. But when the Gender Directive comes into place on Friday, women who take out a new Life Insurance policy will have to pay more.
While ladies are facing increased costs for Car and Life Insurance, they are likely to get lowered premiums for their Income Protection cover. This type of insurance provides an alternative income to the claimant in the event they cannot work due to a work accident or serious illness. Women currently pay more for Income Protection than men due to the fact they make more claims.
Unfortunately, these premium changes will become reality for insureds and the only way you can avoid these increases is by getting taking out an insurance policy before this Friday. Anyone who gets cover before the 21st December deadline can avail of pre EU Gender Directive rates. So, get in touch with our insurance team by calling 1850 746 759 today.