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January 9, 2012updated 13 Apr 2017 8:46am

Reluctant UK Treasury consults on premium gender equality

Making no secret of its dislike of the concept, the UK Treasury has opened a consultation on the implementation of the European Court of Justices ruling banning the use of gender as a risk factor by insurers as from 21 December 2012 (see EU insurers gender headache)

By LII editorial

Making no secret of its dislike of the concept, the UK Treasury has opened a consultation on the implementation of the European Court of Justice’s ruling banning the use of gender as a risk factor by insurers as from 21 December 2012 (see EU insurers’ gender headache).

In a statement, the Treasury noted: “The government believes that nobody should be treated unfairly because of their gender, but that financial services providers should be allowed to make sensible decisions based on sound analysis of relevant risk factors. Despite this, the judgment is binding in UK law.”

The Treasury stated that in its consultation the central assumption is that gender equality will result in an initial and marked net increase in the cost of premiums, with those in lower-risk categories suffering significant increases, subsidising the lesser reductions for those in higher-risk categories.

In particular, the Treasury noted that it is seeking input from insurers of the number of term life policyholders and annuitants, and the gender mix, to allow for an estimation of the aggregate impact of the gender ruling to be made.

In addition, the Treasury has placed a high priority on input from insurers relating to the costs of implementing the gender ruling.

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