Starting in December, the massive upheaval in premiums will kick in as gender is no longer a coverage factor.
The insurance news that will rock the European Union next month will explode as policyholders open their bills and discover that the premiums that they had previously been quoted will experience a notable difference.
A European Court of Justice ruling has said that gender cannot be used to calculate premiums.
This means that insurers will no longer be able to take into account whether a customer is a man or woman when determining how much they will be paying. The insurance news across the industry has nicknamed the deadline for the changes “G-Day”. This will be the day that premiums must become “gender neutral” and men and women must be treated the same, despite the fact that they come with different levels of risk to their insurers.
This insurance news started in March of last year, but will now be taking full effect.
The deadline itself will be on December 21, 2012. Though some insurers have already beaten the insurance news date limit and have implemented the changes to the premiums in order to comply with the ruling, others are waiting until the last minute. Some have not yet even revealed what the new premiums will be or exactly how they will be changing.
This has left many policyholders wondering whether they should be expecting good insurance news or bad in their next monthly bill. What experts do feel is relatively obvious about any of the upcoming changes is that in terms of auto coverage, young women will be paying notably more than they currently are, whereas men at the same age will be paying slightly less.
On the other hand, when buying an annual pension (an annuity), women will now be receiving a slightly better deal and men will not be benefiting quite as much as they were before the regulation went into place.
Gender has been a factor in the calculation of policy premiums for decades – particularly in terms of vehicle coverage. In that sector, there has been very little insurance news as of yet, as most of the insurers have decided to wait until the deadline – or close to it – to make their changes.