Insurance: Gender Discrimination

Lord Thomas of Gresford Excerpts

Tuesday 8th March 2011 Lords Chamber

[Baroness Verma]

My Lords, the noble Lord has referred to a number of very difficult decisions that had to be taken. We are disappointed by the ruling. The previous Government made written representations and we made oral representations, but the judges unfortunately decided that by 21 December 2012 it will be illegal to discriminate on the basis of gender. It is clearly undesirable to treat people unfairly because of their sex. However, financial services providers will be allowed a period in which to make the changes. We are encouraged that people have supported our drive for equality. Unfortunately, things such as this make our task much more difficult. I am pleased to say that the insurance industry has adopted a can-do attitude to this ruling, and I am sure that we will do our very best as a Government to assist it.

[Lord Thomas of Gresford]

My Lords, what steps have the Government taken to discuss this judgment with the insurance industry in order to prevent profiteering? Why has my stepdaughter's motor premium gone up now, when there will be no difference until December 2012?

[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.