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FSA highlights risk of insurers missing gender pricing ban deadline

The FSA is concerned insurers may fail to change their systems in time to comply with the ban on gender-based pricing which will be introduced on December 21.

The European Court of Justice ruled last March that insurers can no longer use gender as a factor in pricing.

In its retail conduct risk outlook, published today, the regulator says the ruling creates a number of potential concerns.

It says: “Our primary concern on the transition to unisex premium pricing is that firms fail to make appropriate or timely changes to their systems and controls to ensure the pricing of insurance products is in line with the new requirements.

“It will be important for there to be clear communication to consumers, particularly when issuing illustrations around the time the change is implemented in December 2012.”

The FSA is also concerned that consumers may not receive sufficient information about changes to existing products or quotations obtained immediately before December 21.

The regulator says another potential issue is that insurers withdraw from the market or from certain product lines  as a result of the ban.

It adds firms need to ensure they have the appropriate systems and controls in place in enough time to meet the statutory deadline of December 21.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. When the ruling happened last March – the possibility existed that the ECJ would require immediate implementation.

    Therefore as far as I know – all insurers were poised ready to press the Gender Neutral button on 1 March 2011.

    Most have therefore already done the work and it is just a question of pressing the button 18 months later.

    Treat it as an opportunity not a problem.

  2. And enter the era of female only annuity rates. What man will buy an annuity when he knows that the risk is weighted against him?

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