Previously, women were being offered lower quotations by insurers as women, on average, live longer than men.
(PRWEB UK) 13 July 2012
Following the EU’s ruling of equal gender annuity rates that come into effect in December, senior workers within the insurance industry have raised doubts over the loopholes that potentially could be available and exploited, specifically in occupational pensions.
The new EU directive will cover only personal pensions, prohibit gender discrimination in this area and see the rise in female retirement income quotations and a drop in quotations for men. Previously, women were being offered lower quotations by insurers as women, on average, live longer than men.
John Lawson of Standard Life has warned, the new ruling could still see insurers offering gender based annuities after December, by specifically targeting occupational pensions and traditionally male-dominated sectors. Controversially, this would be a useful loophole for insurers and companies could still buy annuity on an employee’s behalf, which is causing confusion and worry within the industry.
Scott Mullen of My Pension Expert believes that the new ruling doesn’t make sense and the system is already confusing enough for investors. He also stressed it is important through these times to take advice when looking in to retirement options.
It appears that to have some cohesion within the insurance industry, an equal gender pricing rule must cover all aspects of pensions, regardless of whether they are personal or occupational in order to satisfy concerned customers and officials alike.
The debate as to whether the EU should refine the new ruling has yet to come to light, however, the gap in the legislation continues to be provocative within the industry and can be seen as a glimmer of hope for some insurers.