The End of the World and insurance premiums!

Is it coincidence that the recent ruling by the European Court of Justice that forced the UK to enact legislation to ensure that all forms of insurance cover comply with gender neutral pricing from 21.12.12, the same day as the Mayan Calender predicts the possible end of the world.

Yes it’s the Winter Solstice but unless something happens during the rest of the day it would appear that the significance of the date is that young women in particular can expect motor insurance and life insurance premiums to rise by as much as 25% given that their current premiums have been lower than men’s.

Conversely because men have a shorter life expectancy than woman and therefore benefit from higher annuity rates (on a like for like basis) men will lose out in retirement as their annuity rates are expected to decrease.

Complex changes from 1.1.13 which HMRC are introducing on the way insurance companies are taxed are likely to mean, one thing, more costly premiums for the customer.

If you are reading this having survived the end of the world, I wish you a Merry Christmas and a happy New Year!

 

  

2 comments

  1. Yes I am not looking forward to the insurance thing, mine’s high enough as it is and I’ve been driving for 5 years… And apparently the end of the world is at 5am Mexican time, so we’ve still got about an hour! 🙂

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