European ruling bans gender for insurance companies calculating premiums
Wed, 02 Mar 2011
A landmark ruling from Europe's top court is banning insurance companies from calculating pemiums based on gender, which means that making men pay more than women for life insurance and car accident policies is discriminatory.

The insurance industry has said the judgement from the European Court of Justice that insurance companies must stop charging different rates for women and men from December 21, 2012, will drive up costs for consumers.

Women generally don't pay as much for life and car insurance because they are expected to live longer than men and be involved in fewer accidents .

Matt Morris, Senior Policy Adviser at LifeSearch, said: "This is a horrible mistake by the European Court. It is essential for insurers to use gender to calculate risk based on solid actuarial evidence and statistics. It is price differentiation, not discrimination, as it is not a decision that comes down to the whim of an individual. The consumer will now suffer. Prices will go up across the board as insurance companies try to build in the new risk. Women currently pay more than men for life insurance, whereas men pay less for income protection ."
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