New gender equality rule will cause hit families in the wallet
Miami, FL -- (SBWIRE) -- 01/17/2013 -- Women will no longer be offered discounted rates on their insurance after the introduction of a new law by the EU was passed regarding gender equality.
The precise range of the rule is still unclear, but the law which was passed on December 21 will hit families in the pockets as male pensioners will suffer as well as women, who will see a 40% increase for insurance.
Insurance companies are no longer allowed to vary their policies based upon gender following G-Day, according to the result based on a 2011 European court of justice ruling.
The law will have an impact on the total that individuals will pay for car and life insurance, as well as the size of income available to men when they utilize a pension to buy an annuity.
PricewaterhouseCoopers (PwC) stated that male pensioners will see their annuity payouts reduced by £10,000 over the span of their policy. Men have historically averaged a reception of 4% more income on annuities than women, based on the tendency for women to live longer.
Raj Mody, who heads the pension consulting at PwC, stated: "While a small number of women will be better off from the ruling, eight out of 10 annuities currently sold in the UK are bought by men, so many more people risk losing out than gaining."
Joint life annuities purchased by the husband will now affect the wife's benefits, as they will end up with a lowered income compared to previous totals.
The Association of British Insurers stated that the insurance market could “remain competitive”, but experts on car insurance suggest groups will face some rather costly jumps in price.
Price comparison website GoCompare stated that the average price for 17 and 18-year-old females has risen by almost one-third, while Male's of the same age will have premiums decreased by 10%.
About Cheap Auto Insurance Guides
Cheap Auto Insurance Guides (http://cheapautoinsuranceguides.com/) gives visitors quality and easy-to-understand information on how to attain the best in vehicle insurance and best car insurance for new drivers. Visit the website to find out how much is car insurance for new drivers, online car insurance with no deposit and how much is car insurance with no deposit.
Copyright © 2005-2013 - SBWire, The Small Business Newswire - All Rights Reserved - Important Disclaimer
Contact Us: 888-4-SBWIRE (US) - 920-321-1250 (International)