European Court of Justice outlaws the use of gender in underwriting

The European Court of Justice (ECJ) has outlawed the use of gender in underwriting from 21 December 2012.
The decision applies to all forms of insurance, including life insurance and private medical insurance (PMI), which the FSA predicts will be badly hit.

Industry representatives have been reluctant to speak out for fear being seen as lobbying judges, but the ruling will have a significant effect on protection and PMI pricing.

A statement from the ECJ said: "The Court rules that, in the insurance services sector, the derogation from the general rule of unisex premiums and benefits is invalid with effect from 21 December 2012."

It had been feared the ruling would be active immediately and retrospective to all currently in force policies, but this has not been realised.

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