Insurance Equality Law
Insurance premiums are set to rise this year due to European sex equality legislation. The change in rules means that men and women must pay the same cost for their cover from December 21st this year. Younger female drivers are most likely to be the hardest hit. Some may see premiums increase by as much as 25% while younger male drivers should see a decrease in costs.
The insurance industry and Government lobbied against the change saying that insurers have only ever taken gender into account previously where it was relevant to risk.
These changes due to sex equality will also affect annuities and life and health cover.
The biggest impact of the change will be on drivers whose premiums will change at their next renewal.
Women under 30 will pay more while men will pay less but drivers in general will end up paying more in total as insurers will err on the side of caution when setting new levels.
Because there are so many changes to be made to brokers and insurers computer systems it is more than likely that the changes will be phased in from September.
Graeme Trudgill suggested that renewal time would be the ideal opportunity to shop around and get a second opinion.
The change in rates will drive the installation of “black boxes” in an effort to reduce each individual’s premiums.
Many leading insurance firms are now looking to approach drivers affected by the new laws with their “Black Box” solutions – by utilising Revive managements insurance mailing lists they can target these individuals via direct mail, email marketing, SMS and telephone. Revives vehicle marketing lists allow insurance firms to segment their marketing communications by vehicle make and model information, engine size and any other variables that would be included on an insurance quotation.
LIFE AND HEALTH
The fact that women live longer will not be considered towards cheaper insurance when equality rulings are introduced.
As the changes are not coming into effect until December 21st now is the time to take out new cover or top up existing policies. A woman taking out say £250000 of life and critical illness cover now at around £80 per month would save around £4800 over the policy’s 25 year life.
ANNUITIES AND PENSIONS
Pension funds will also be affected by the equality rules. The ABI forecasts that male annuity rates will fall by around 8% while female annuity rates will rise by around 6%. Vince Smith-Hughes who is head of retirement income at Prudential thinks that we will not get a clear picture until closer to the December deadline.
Men due to cash in their pension in the next 12 months might be tempted to try and buy an annuity at “male” rates before the end of the year.
Billy Burrows who runs specialist adviser Better Retirement Group says “ There are good reasons to be looking at taking the annuity now but the gender effect is only part of the equation. You must also take account of stock markets and what might happen with interest rates”.
So many pensions companies are wondering who are these individuals and how can you target them with your pension’s products? Revive Management’s dedicated pensions data file encompasses consumers that are actively looking for new pension’s products, these consumers have responded positively to a recent financial survey. All our marketing lists are fully opted in to receive third part communications via Mailing Lists, Email Lists, Telephone Lists and Mobile marketing.
For more information on any of our data files please please call 0844 693 0244 to speak with a member of the team or click here to send us your details and a member of the team will call you back within one hour.