View more on these topics

Gender basis ban gets go-ahead from MEPs

A ban on underwriting insurance products on the basis of gender moved a step further while an amendment to protect execution-only business was approved in two separate European Parliament votes last week.

The gender equality directive was approved by MEPs. It will prohibit underwriting life and general insurance products and annuities on the grounds of gender.

UK insurers are lobbying for insurance products to be exempt from the directive which is generally accepted will mean higher motor insurance premiums for women, although annuity rates may rise slightly. The directive goes before the European Council on June 1.

MEPs also overwhelmingly approved an amendment to the investment services directive which had threatened to outlaw execution-only business by introducing a know your customer requirement. The directive was changed after lobbying by Conservative MEP Theresa Villiers.

Speaking in the European Parliament, Villiers said: “Execution-only services and direct offer products will be permitted to continue under this directive. The framework for those products is more complex than I would like but execution-only business can continue.”

Norwich Union spokeswoman Louise Goffee says: “We are opposed to discrimination of any kind but the use of gender in the calculation of insurance premiums is not discrimination but a fair recognition of objective risk-premium differences between the sexes based on actuarial statistics and claims&#39 experience.”

Richard Jacobs Pension & Trustee Services director Richard Jacobs says: “In so far as it applies to annuities, this is discriminatory to men. Women will realise how stupid the whole issue is once their car insurance premiums go up.

“As clients become more sophisticated and there is more information available on the internet, the execution-only market, albeit a small one, will continue to grow.”

Recommended

County Mortgages – No Income Declaration Mortgage

Type: Self-cert tracker mortgage Tracker term: Lifetime of loan Tracker rate: Up to 90% of valuation &#45 1.99% above Bank of England base rate, up to 85% of valuation &#45 1.74% above Bank of England base rate, up to 75% of valuation &#45 1.49% above Bank of England base rate Minimum loan: £25,001 Maximum loan: […]

Children&#39s Mutual in admin deal with Capita

The Children&#39s Mutual has picked Capita to administer its existing services portfolio and new child trust fund accounts. It is planning to market its own CTF accounts and to provide products and admin services for other financial services organisations in partnership with Capita. Capita is to invest £2.5m in customising technology to create bespoke admin […]

Independent view

Pension misselling and endowment misselling – what went wrong? The problem is that, unfortunately, our industry is sales-driven. Yes, we can give euphemistic titles to salesforces but nonetheless they are salespeople. If you look at any industry which is sales-driven, it equates to high commission, inappropriate and complicated products and no after-sales service. Double-glazing, timeshare, […]

FSA finalises plans for &#39flexible&#39 exam switch

The FSA has finalised proposals to move from approved to appropriate exams, saying the change will lead to “greater flexibility” for firms in deciding which exams staff should take to be deemed competent. The regulator and the Financial Services Skills Council have agreed a memorandum of understanding, outlining the future of the two bodies&#39 relationship. […]

Survey cover

EEF/Jelf Employee Benefits Sickness Absence Survey 2015

EEF stated in its 2015 EEF Manifesto that the UK’s growth prospects depend on people being fit, working and productive. Keeping people in work and helping people return to work is very important for the manufacturing sector. It means boosting productivity by getting people back into work as early as is possible, as well as fostering workplace cultures and environments that proactively manage individuals’ health conditions so that all can benefit from lower sickness absence outcomes.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com