From 21st December 2012, the European Court of Justice has deemed it unlawful to use gender as a rating factor when determining premiums and/or policy benefits.
This will affect all insurers selling a range of insurance products that has used gender within their rating.
Underwriters tend to use a whole range of rating factors to establish price and gender has historically been included in part in this calculation of price, particularly on motor products.
Insurers will need to be going Gender Neutral for new business at some time between now and 21st December. Their terms will all be Gender Neutral for policies with renewal dates from 21st December onwards.
Renewal prices are influenced by many underwriting factors; therefore, it’s important to remember that any individual decrease or increase when compared to the prior year’s premium may not necessarily be due to gender neutral pricing.