New insurance pricing guidance issued

New insurance pricing guidance has been issued by the Association of British Insurers (ABI) ahead of the introduction of gender neutrality for the industry.

There are just three months to go before the European Court of Justice implements a ban preventing insurers pricing their policies based on gender – and the ABI has outlined how the changes are likely to affect consumers going forward.

The group explained motor insurance, life cover, critical illness and income protection are all likely to be impacted by the alterations, but noted customers should not solely think about money when putting pen to paper on a deal.

It recommended individuals shop around for the deals that are most suited to their personal needs.

Otto Thoresen, director-general at the ABI – which acts as the voice of the insurance industry in the UK – observed there will be some differences in pricing, which will become clearer as the market adapts to the new rule.

Mr Thoresen stated: “It is important to remember that gender is one factor of many used by insurers and we hope our guidance will encourage customers not to focus on price alone.”

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