New Euro Zone laws may endanger discount car insurance for women in addition to slicing into retirement incomes for millions of their male counterparts.
The European Court of Justice is expected to rule shortly on the issue of using a person’s gender to calculate insurance premiums. Any ban would adversely effect the discounted car insurance rates women currently enjoy in the UK.
Car insurance companies are expecting a flurry of legal activity after receiving a legal opinion that pointed to the possibility of such an outcome is a possible one. Legal experts Slaughter & May stated that if implemented the new regulations could be put in place as soon as this March.
In addition to the loss of discount car insurance for women, men’s pensions could be reduced as well. This stems from the higher annuity rates that men receive due to their statistical tendency to not live as long as their female counterparts. In an ironic turn of fate female pensioners might only see a nominal increase in their own incomes however.
Additionally many women may end up paying as much as 25 per cent more for motor car insurance. Younger women are poised to lose big if gender-specific risk assessment becomes banned as young male drivers are considered to be significantly worse drivers from a statistical viewpoint. Industry experts fear that some insurance companies may begin to refuse to provide cover to the risky demographic. Health and life insurance pricing would also be affected by the ruling.
The Association of British Insurers stated that they expect a decision by this May. However an ABI spokesperson commented that as there have been no solid indications as to what the courts will decide, they have been making preparations by looking at what the consequences could be.