Daily Insurance Industry News
 
 
Daily Insurance Industry News
Tuesday 23rd of January 2018
February 28, 2011

Gender Directive could require UK insurers to raise almost £1bn

by Gill Montia

Story link: Gender Directive could require UK insurers to raise almost £1bn

The European Court of Justice’s ruling on the Gender Directive, due 1st March, could mean that the UK insurance industry will need to raise nearly £1 billion in additional capital.

Unchallenged, the Directive means that UK insurers can no longer offer premiums based on gender and according to Open Europe, UK insurers will need to raise an extra £936 million to cover themselves against “new uncertainties” in the market.

The think-tank argues that this cost will be passed on to consumers, so that rather than equalising men and women’s existing insurance costs, the Directive would increase total costs for consumers, taken as a whole.

It would also affect several different insurance and pension products, including motor insurance, private medical insurance, life insurance and annuities.

Taking motor insurance as an example, Open Europe estimates that, on average, a 17-year-old female driver would have to pay an extra £4,300 in insurance premiums by the time she is 26, as a consequence of an unfavourable ruling.

The body’s research director, Stephen Booth, says: “This is a perfect illustration of how giving ever greater powers to unaccountable EU judges does not only come with a democratic cost, but can also have massive economic costs for individual consumers and the wider UK economy.”

 

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