Employer > News > ECJ ruling on the Gender Directive
ECJ ruling on the Gender Directive
We'll be unable to use gender as a factor in product pricing.
On 1 March 2011 The European Court of Justice (ECJ) ruled that from 21 December 2012, insurers cannot use gender as a factor in product pricing1. This means that future rates for the majority of life assurance and annuity policies will have to change, which may not be for the better.
Existing legislation
The law already states that businesses can't set different prices based on gender, but insurers had been granted an opt-out from this legislation, provided they could show that differences in premiums were based on solid statistical evidence - for example, that women have longer life expectancy.
Now this opt-out is to be withdrawn due to a Belgian consumer group - Test-Achats which challenged their government's use of the insurance exemption. This challenge was subsequently referred to the ECJ.
What happens next?
In common with other insurers, Scottish Life will be reviewing the legal implications for new and existing group pension contracts. We will also work with the Association of British Insurers (ABI) and other industry bodies to assist HM Treasury in any way we can.
For you, business will continue as usual for the time being, and you should encounter no change to normal business practices.
More information
If you would like more information on the ECJ decision then speak to your financial adviser. Alternatively, you can read this ABI Press Release.
Reference
1Case C-236/09, European Court of Justice 1 March 2011
This information is based on our current understanding of the relevant legislation and regulations and may be subject to alteration as a result of changes in legislation or practice.
