Insurance: Gender Discrimination

Lord Davies of Stamford Excerpts

Tuesday 8th March 2011 Lords Chamber

[Baroness Verma]

My noble friend raises another very important issue. We cannot dictate to insurance companies how they should make judgments on how their premiums should be costed. However, we are working closely with insurance companies and the financial services sector to ensure that they do not roll out unfair premiums on the back of this ruling.

[Lord Davies of Stamford]

My Lords, it is a pretty remarkable day when an insurance market is instructed to operate contrary to actuarial principles. Are there not two things that could flow from this? Either everybody will be forced to buy their insurance within the EU by some means or other, which would surely be contrary to both the spirit and the letter of our WTO commitments; or those categories of people disadvantaged under the new ruling will simply buy their annuities or motor cover offshore, outside the EU, in the United States, Canada, Bermuda, the Channel Islands or wherever. In those circumstances, a substantial industry will develop offshore to supply those important segments of the EU market at the expense of the EU economy.

[Baroness Verma]

My Lords, the noble Lord raises a question that I posed to civil servants. The response I received was that any insurance sold in the EU, whether or not it is from outside the EU, will be applicable under these rules.