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Womens Car Insurance Article |
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EU insurance draft "ignores reality"
EU plans to stop gender being an issue when purchasing insurance and pensions have come under attack by the chairman of the Financial Services Authority this week.
Mr McCarthy claims the law would stop women buying cheaper car insurance. Insurance companies would also stop selling pensions based on a person's gender, despite the disparity in the longevity between sexes.
Mr McCarthy quoted the figure of £1 billion as the extra cost to the industry if this law were passed.
"Ignoring or overriding the reality of different life expectancies" would mean a two per cent increase in a 60 year old lady's pension annuity and a three per cent decrease in that of a 60 year old man's, he said.
European Commission spokesperson, Antonia Mochan, claimed the research into the longer lives enjoyed by women was merely speculative and not based on scientific facts.
The FSA predicts the cost of all insurance policies will rise as a result of the law.
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