Aviva group chief executive Andrew Moss has played down fears insurers will significantly cut male annuity rates following the ECJ ruling banning gender pricing from December 21, 2012.
In a conference call this morning Moss said it was “too early” to conclude that the changes, which will force providers to offer unisex annuity rates, will automatically penalise men who buy pension products.
He said: “It takes some time for the ruling to actually be implemented and the reality is we’ll see the market in the UK adapt during that period.
“We’ll have to see how it works through in a very competitive environment. I think it’s far too early to say male annuity rates will definitely worsen.”
The ABI has suggested male annuity rates could fall by 8 per cent as a result of the ruling, while it says women’s rates could rise by 6 per cent.