ECJ decision to increase premiums for insured and other benefits

16 January 2012 |

The ECJ has held that insurers cannot take gender into account as a risk factor when setting premiums and payouts in respect of annuities, retirement savings and accident cover.

The decision is likely to affect many insured benefits provided by employers such as life assurance and private medical cover and have the effect of increasing premiums.  The impact of the decision is less clear in respect of occupational pension schemes which are presently allowed to use gender-specific actuarial factors (under the Equal Treatment Directive and, in the UK, included in the Equality Act 2010) which are based on data which broadly demonstrates that women live longer than men.   However, an equal annuity is now likely to cost more for a woman as she will receive it for longer than a man.

The ECJ considered that taking the gender of the insured individual into account as a risk factor in insurance contracts constitutes discrimination contrary to Article 4(1) and 5(1) of EU Directive 2004/113/EC which implemented the principle of equal treatment in the access to and supply of goods and services.  A rule providing for unisex premiums and benefits will come into effect from 21 December 2012.  During the transitional period between now and then EU member states need to decide what action to take on domestic laws and give companies time to adjust and consider the potentially substantial knock-on effects.


Association Belge des Consommateurs Test-Achats and Others (Social Policy) [2011] EUECJ C-236/09 (01March 2011)

For further information or to discuss the issues raised, please contact Guy Abbis, David  Widdowson or Stephen Wright  on +44 (0) 203 051 5711


Content is for general information purposes only. The information provided is not intended to be comprehensive and it does not constitute or contain legal or other advice. If you require assistance in relation to any issue please seek specific advice relevant to your particular circumstances. In particular, no responsibility shall be accepted by the authors or by Abbiss Cadres LLP for any losses occasioned by reliance on any content appearing on or accessible from this article. For further legal information click here.

Related content

13 June 2024
How to apply for certificate of residence in the UK
Where an individual is resident in the UK and has…
29 May 2024
UK Share Plan Reporting 2024: Everything you need to know
The deadline is approaching for the HMRC’s annual return filings…
20 May 2024
Employee Share Plan Reporting 2024: Alerting Your Clients
The UK tax authorities’ (HMRC) submission deadline for annual return…
Subscribe to our newsletter
Stay up to the minute on our latest news and insights?
International reach

We have helped clients meet their HR needs in over 70 countries across five continents.