EU Gender Directive

 

What is the EU Gender Directive?

This is a new ruling that was passed by the European Court of Justice (ECJ).  It was passed by the ECJ in March 2011 and will come into effect from the 21 December 2012.  This ruling states that no longer can insurance companies charge men and women different rates on their policies.

Why was this directive introduced?

When insurance companies assess your details for a quote on car insurance they take into account many risk factors such as age, licence type, engine size and even your gender.  Insurers have been doing this for many years now and it was allowed under Irish and EU laws due to sound statistical information that gender was a risk factor.  This law was challenged by a Belgian consumer group called “Test Achtas”.  Test Achtas seen this use of gender as a risk factor as gender inequality so they challenged this law in the ECJ and their challenge was successful.

What does this mean for insurance companies?

Insurance companies will no longer be allowed to use your gender as a contributing factor when calculating premiums.  This means that both men and women must be charged the same amount for their policies and insurance companies are forced to offer unisex policies.

What does this mean for you?

Men shouldn’t be jumping out of their skin expecting cheaper premiums as of yet.  We cannot be certain what will happen to your premiums until the directive is effectively in place.  We personally think that men’s premiums will only decrease a slight fraction, if decreasing at all, but instead women’s premiums will rise.  Women could potentially see an increase in their premiums of up to 15%.

What policies will this ruling effect?

The new ruling applies to all insurance polices where gender is used as a contributing factor when calculating premiums.  These polices are motor insurance, life assurance and annuities.  These policies include car insurance, van insurance, life cover, serious illness cover, cancer cover and income protection.

Will my direct debit payments change after the 21st December?

No.  The new unisex rates will only affect policies that are renewed or new policies that are taken out on or after the 21st December 2012.  Policies that are currently active will not be affected until the policy is being renewed.

What to do when renewing or taking out a policy after 21 December?

Insurance companies around Ireland and Europe will change their rates frequently when the new ruling is in place.  This is due to the fact that they have to produce new rates while they are still trying to be competitive with other companies.  Our advice for you is to shop around.  We here at Wexford Insurances have contact with 14 different insurers and can search the market for the best policy at the best price, all on your behalf.

Is this really equality?

It is a statistical fact that young male drivers are much more likely to have a road collision that their female counterpart so is this really equality?  If using one’s gender as a risk factor is seen as inequality then what about using one’s age?  Is using age as a contributing factor when calculating insurance premiums ageism?  Should young first time drivers be charged the same amount as older first time drivers for their policies?

This ruling has received mixed reviews from the general public.  We here at Wexford Insurances would like to know what your opinion on this new ruling is.  You can get in contact with us via our Twitter, Facebook or LinkedIn account.

Contact us TODAY to discuss your insurance needs with your experienced, dedicated account handler on:

Tel:                 0818-31-30-30

Email:             info@wexfordinsurance.com

Website:        www.wexfordinsurance.com

Drop into us:  Wexford Insurances, 86 South Main Street, Wexford Town, Co. Wexford

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