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NEWS

RELEASE

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21 September 2004

EMBARGOED UNTIL 00.01 HOURS WEDNESDAY 22 SEPTEMBER

LORDS COMMITTEE BACKS INSURANCE CUSTOMERS ON EU DIRECTIVE

(236 words)

The House of Lords EU Social and Consumer Affairs Sub-Committee has accepted the evidence of Britain's insurance industry that an EU Commission proposal to ban the use of gender in insurance would raise the cost of insurance for consumers, and in particular women, and would prevent companies from pricing risk effectively.

The ABI (Association of British Insurers) has also welcomed the Committee's view that the European Commission should carry out a thorough impact analysis of its proposals before proceeding any further.

Stephen Sklaroff, Deputy Director General of the ABI, said:

"The Committee's Report supports the UK's existing and robust sex discrimination legislation which allows gender to be used as a factor in insurance when the data is relevant, reliable and objective. The Commission's proposals as currently drafted would have the perverse effect of forcing women to pay more for their motor and life insurance.

"The Committee is also right to take account of the special features of the UK's annuity market, and to point out that the Directive would not help women in retirement. We endorse the Committee's view that other initiatives are needed to close what we have called the 'gender pensions gap'. We have recently proposed a package of measures to help achieve this."

He added:

"We are delighted that the UK Government, and now the Committee, have taken such a clear stand on this issue, which is of huge importance to our customers."

- ENDS -

Notes for Editors
  1. The EU Directive on gender equality is still under consideration by EU member states. The next important Ministerial meeting will be held on 4 October. We understand that there are still clear differences of opinion between member states and that a majority is opposed to the Commission's current position.
  2. Enquiries to:

Alan Leaman020 7216 7440 (Mobile: 07957 482330)

Leonie Edwards020 7216 7394 (Mobile: 07736 664 343)

Lucy Butler020 7216 7411 (Mobile: 07712 841184)

Malcolm Tarling 020 7216 7410 (Mobile: 07776 147667)

  1. The ABI is the trade association for Britain’s insurance industry. Its more than 400 member companies provide over 97% of the insurance business in the UK. It represents insurance companies to the Government, and to the regulatory and other agencies, and is an influential voice on public policy and financial services issues. ABI member companies hold more than a fifth of all investments traded on the London Stock Exchange, on behalf of millions of pensioners and savers.
  2. An ISDN line is available for broadcasts.

Copies of all ABI news releases, together with other information from the Association, can be seen on our website

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