The UK Insurance industry operates in a complex legislative environment that impacts many types of insurance product and the way that insurance services are offered to the public. 2012 looks set to be a busy year for insurers trying to accommodate legislative changes in their product pricing.
From the start of the new fiscal year (6th April) there will be several changes affecting employment law and therefore income protection insurance. New rules about taking action in Employment Tribunals will make it more expensive to challenge employment terminations, and from the same date, new starters will have no access to tribunals for 24 months instead of the current 12. This could affect the price and cover offered in many income protection policies.
More sweeping changes are likely in December when a ruling by the European Court of Justice comes into effect. At the moment, UK insurers have an ‘opt out’ clause in the European ‘Directive on Equal Treatment’ (reference (2004/113/EC) more usually known as the Gender Directive). This opt out clause allows them to consider gender when assessing and pricing insurance risks. From the 21st December 2012, this opt out will be revoked.
The net outcome is that any insurance policy that currently includes gender as a risk factor is likely to be affected.
Michael Day of Endsleigh Insurance explains; “The biggest impact is likely to be on motor insurance where young women may see prices rising by around 25 percent while young men benefit from a 10 percent saving. However, unemployment and income protection policies, pensions and annuities, and of course life insurance prices and benefits are all likely to be impacted.”
Endsleigh offers insurance policies for all of these risks and recommends that everyone should review their policies now with their current independent financial advisor, or else contact Endsleigh Insurance for advice and quotations. Endsleigh recently published an article on its website at http://www.endsleigh.co.uk/Media/Pages/Gender-Directive-News-financial-advice.aspx which offers further information about the impact that the ‘Gender Directive’ is likely to have on insurance prices and cover.
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About Endsleigh Insurance
Endsleigh is an independent intermediary specialising in the provision of insurance and financial products for career people.
The team have access to the leading insurers and lenders in the UK market, offering comprehensive advice on all areas of financial planning. Along with offering advice on financial protection, investments and retirement planning, Endsleigh also has dedicated mortgage and corporate advisers.
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