Today’s ruling by the European Court of Justice (ECJ) to remove the discrimination between men and women when it comes to insurance has certainly caused a stir. I can’t remember the last time that the insurance industry was a headline story.
Here are some of the possible repercussions according to ABI estimates:
- Women aged under 25 could see car insurance costs rise by up to 25%
- Men could see an 8% reduction in annuity rates, but women could see a 6% rise
- The cost of life assurance could increase by 20% for women but fall by 10% for men
Whilst this ruling affects all types of insurance, not forgetting products such as annuities, which have traditionally paid out different rates for men and women, car insurance has probably received the most attention.
Price comparison site Confused.com have produced a car insurance price index calculator, which you can try out below, which shows how the average price for men and women of various ages varies in different geographic areas.
Car insurance premiums for women are now expected to rise, although there may be a little cat and mouse from insurers about when they choose to increase their rates for women. By December 2012, the differences between the genders will be gone.
Along with the gender difference, the calculator will also show you the shocking rise in insurance premiums over the last year. Try it out:
Insurance Price Index Calculator Widget created by Confused.com
Could age be the next factor the ECJ rules cannot be used in insurance pricing? I wouldn’t rule it out, it would only be as bonkers as today’s ruling.