Since December 2012, men and women are equal to the premiums paid - so decided the European Court of Justice .
does not often happen, that the efforts to align the position of women and men are a concern. However, the decision of the European Court of Justice a few weeks ago, according to which insurance companies must apply the same rates for their products for both women and men unleashed a wave of unrest.
In the Court's assessment of risk based on gender is discrimination based on sex and contradicts the principles of the European Union, which is the foundation of equality. Judgement will enter into force until 21 December 2012, but its effects will touch nearly every European who will pay as a result of higher insurance premiums. So far, insurance companies were pricing their products based on differences in the number of car accidents and life expectancy for men and women. The prohibition of such a method would force insurance companies to find other ways to determine the appropriate rates. "Eventually, prices will be more accurate and better suited for an individual, but the process will be much longer and more expensive to execute" - warns Tom McPhail President, Social Policy Research at Hargreaves Lansdown.
now young men are paying the highest insurance premiums on the car, since statistically more likely to participate in road accidents. In turn, their income from pensions is higher, because their life expectancy is shorter than in women. It would seem that a ban on premium pricing based on the sex of the insured will cause rates to compensate them after appropriate reduction, but the reality is quite different. Last year, the Association of British Insurers commissioned a study which showed that, by removing the distinction between men and women would have 25 per cent increase in vehicle insurance rates for women, and according to some experts, up to 50%. Moreover, is not expected to significantly reduce insurance premiums for men - risk of accidents caused by them is still high. Major changes are in store, therefore, insurers specializing in policies for women, and although companies such as Sheilas' Wheels do not intend to maintain that the introduction of significant changes to the pricing of insurance premiums only for women will be higher.
Martin Shaw, Director chief of the Association of Financial Mutuals is more optimistic view of the consequences of the European Court's decision in his view they will be limited and temporary. " Markets car insurance and life are very competitive, so will look for new, sophisticated ways which will be based processes to determine premiums. In practice, this means that issues such as health and lifestyle will become more important than ever determinants of the rates, because insurers will be forced to seek new methods of risk assessment "- explains Shaw.
drivers already struggling with high premiums for car insurance, which in the past three years has increased by £ 650 and now amount to an average of £ 1.332. If insurers can not consider gender in assessing the risk that rising curve may be significantly accelerated.
Because of the longer life expectancy, women pay lower premiums for life insurance, but more for critical illness insurance, while men receive higher benefits pension, because statistically men live shorter. British Association of Insurers estimated that after the entry into force of the European Court of men may benefit from the 10 percent reduction in the life insurance policy, while women experience a 20 percent increase in premiums. According to experts, the future changes to such a large scale will mean losses for both men and women. Even the smallest reduction in life insurance premiums for men will be reduced by raising the price of critical illness insurance policy similarly in women, so much the opposite.
Health is one of the most important factors affecting the life insurance premiums, thus losing a few pounds or quitting smoking can save insured up to 50 percent. Moreover, insurance for the pair is cheaper than separate policies. Savings can also be found in the change in the period of insurance and its scope, it is therefore time to time to review your policy and check whether the change in our situation in life will reduce coverage.
summary, in the future years waiting for us to change the way risk assessments by insurers. Prohibition on the pricing of premiums on the basis of gender policy holder, will make the insurance companies will look for innovative solutions, which may make women in particular will experience increased premiums.
article is based on The Independent (06-03-2011)
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