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UK insurance industry affected by EU gender rules?

British ladies who already have an insurance policy set up will be only too aware of the recent European Union gender ruling which has caused UK insurance companies to raise their premiums for female customers.

This applies to life insurance just as it does to car insurance and pension annuities. It is still too early to quantify the difference this will make to the UK insurance industry but there are some points we can start to consider as regards the expected customer behavior now.

All of the Companies Are Affected Equally

There are lots and lots of insurance companies who offer life insurance now and all of them have to comply with the new legislation. This means that it won’t be possible for any ladies to get a cheaper deal which doesn’t take into account the gender ruling. Most people are happier about going with a company they have heard of and many of them prefer to use the firm which covers their home or their car for this insurance policy as well, and this is a trend which we can expect to continue. No one wants to worry about whether the insurance company they choose will pay out in the event of a claim, as this would take away a part of the peace of mind they are paying for. There are many reputable financial companies in the UK with long standing reputation and the likes of life insurance from the likes of Legal & General or Scottish Widows should continue to be as popular as it always has been, while the less well known firms shouldn’t make any big inroads in the marketplace because of this change.

Cheaper Policies Sought?

Of course, it isn’t only by checking with a number of different insurance companies that you can achieve a cheaper premium. An option which more women might be tempted to go with now is that of saving money by going for a lower level of cover. For example, if you could keep on paying the same sort of premium as before by moving from comprehensive car insurance to a third party, fire and theft basis then this could be extremely tempting. This brings with it the risk of many people reducing their insurance policies to a level which is lower than would be recommendable and some may even consider cancelling non obligatory types of cover such as life insurance. It is possible that one of the UK insurance industry’s biggest challenges in the near future is going to be that of encouraging female customers to maintain a decent level of cover.