It is a truth universally acknowledged that when it comes to insurance, it pays to be a woman. In fact, a certain car insurer based its entire business model, shocking-pink adverts and jingles from Down Under upon just that!

But all that is about to change. In 2011, the European Court of Justice banned the use of gender as a deciding factor in the setting of premiums. As a result, insurance pricing will be gender neutral as of next year, with a big impact on both sexes.

The fairer sex?

The ruling will affect a number of insurance plans. When it comes to salaries, the continual gender inequality that prompts column after column of coverage will affect policy pricing for fixed income annuities. Given that men tend to earn more than women but live for a shorter time means that insurers don’t have to pay out for as long. But with the change in law, annuity rates on new plans are likely to fall for men, meaning less cash in the old boy’s pocket during retirement.

When it comes to life cover protection, the fact that woman enjoy a longer life expectancy than men means that claims are traditionally made later. The change dictated by Brussels will see this factor eradicated and thus higher premiums on new plans, with the biggest blow to women’s policies.

But the biggest price increase for health insurance will be footed by men. As it stands, women already pay more than men as they are more likely to visit the doctor when they feel ill, and therefore are more likely to make a claim. Men tend to make fewer claims, but with the introduction of the recent ruling their stay at home stoicism will cease to reap a financial reward. Their health insurance will more than likely increase, while many women will see theirs reduced.

A risky business

Insurance pricing is all about risk. A number of factors are taken into account when determining the price of a plan, but as of 2012 gender will not be one of them. It’s not yet certain which insurance plans will be affected, but what is certain is that many people will end up coughing up more cash for their policies.

Amidst this uncertainty, the key is to shop around and complimentary, no-obligation reviews like that offered by wealth managers such as Gerry Slora at www.sjpp.co.uk/isis are priceless. These services allow customers to pinpoint areas in which savings can be made, and the factors to consider when assessing the level of cover they require.

By Amy King
http://amyking.me