Following a ruling
by the European Court of Justice in March, the Government has
today issued its promised consultation document on how insurers
can use gender as a risk factor in the light of the judgment. The
ECJ ruled that the use of gender as a risk factor by insurers
should not result in individual differences in premiums and
benefits for men and women, with effect from 21 December 2012.
Although the Government continues to believe this judgment is
detrimental for consumers, there is an obligation to implement it
into law. Today’s consultation:
Reiterates the Government’s legal interpretation that the
judgment applies only to new contracts entered into after 21
December 2012, so existing contracts are not affected. It also
seeks views on this legal interpretation and the accompanying
draft regulations.Seeks comments on the Government’s impact
assessment and requests additional data that would help us better
understand the impact on consumers and insurers. Asks for views on
some of the key issues arising from the judgment, such as the
scope of indirect discrimination.
Mark Hoban, the Financial Secretary to the
Treasury, said:
"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. 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.”
Notes for Editors
1. Today’s consultation can be found here: http://www.hm-treasury.gov.uk/condoc_insurance_benefits_and_premiums_gender_neutral.htm
2. Mark Hoban issued a Written Ministerial Statement on this
issue in June, which outlined the Government’s interpretation of
the decision. This can be found here: http://www.publications.parliament.uk/pa/cm201011/cmhansrd/cm110630/wmstext/110630m0001.htm
3. The consultation closes on 29 February 2012.
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