Treasury consults on gender ruling
by Gill Montia
Story link: Treasury consults on gender ruling
HM Treasury has issued its promised consultation on how insurers can use gender as a risk factor.
In March, the European Court of Justice ruled that the use of gender as a risk factor by insurers should not result in differences in premiums and benefits for men and women, with effect from 21st December 2012.
Although the Government believes the judgment to be detrimental for consumers, it is obliged to implement it into law and today’s consultation:
Reiterates the Government’s legal interpretation that the judgment applies only to new contracts entered into after 21st December 2012, so existing contracts are not affected.
Seeks views on this legal interpretation and the accompanying draft regulations.
Seeks comments on the Government’s impact assessment and additional data relevant to understanding the impact of the ruling on consumers and insurers.
Asks for views on some of the key issues arising from the judgment, such as the scope of indirect discrimination.
Financial Secretary to the Treasury, Mark Hoban, comments: “While nobody should ever be treated unfairly because of their gender, financial services providers should be allowed to make sensible decisions based on sound analysis of risk.”
He adds: “We continue to work hard with other Member States and the Commission to secure legal certainty for industry and reduce any detrimental effects for consumers.”