Insurance more expensive under EU rules, says FSA

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FSA chairman Callum McCarthy has warned cost of buying insurance cover is set to rise if a European Directive preventing gender discrimination in premium pricing comes into force.

Speaking at the Global Financial Leadership Forum in London yesterday, McCarthy said insurance prices would rise considerably and could even exceed £1bn if the UK government presses ahead with the European Commission proposal. The new European directive on equal treatment will forbid EU-based insurance firms from considering a person's gender when calculating the price of a product - something which will in particular affect products such as annuities, life insurance, income protection insurance and motor car insurance. While the proposed directive itself sounds like a good idea, the ...

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