EU Gender Directive update

Industry-wide life insurance pricing may change

 

Beat the industry price rise

From 21 December 2012, new European legislation means that insurance companies will no longer be able to take gender into account when pricing insurance policies. Historically, women have paid less for life insurance than men, but this is likely to change at the end of this year.

Women likely to face increases

Initial HM Treasury data suggests women will see the largest premium increases – potentially rising up to 10% to 15% for term life insurance policies and 12% for critical illness policies.*

However, this change will affect all types of life insurance and illness protection products to varying degrees and is likely to impact many household budgets.

Avoid paying more for the rest of your life

Remember that life insurance gets more expensive as you get older. The good news is that this new legislation is not yet in force. There is currently a short time left for you to secure cheaper premiums with AA Life Insurance before the industry price rise.


20 November 2012

* HM Treasury consultation document, December 2011: EU Gender Directive