Living Time – the fixed term annuity specialist has equalized the male and female annuity rates ahead of a crucial March 1 ruling by the European Court of Justice – which may ban gender as one of the parameters in risk calculation of insurance policies.
The decision to hike annuity rates to the higher male end prices was taken to dispel confusion to the consumers, said Kim Lerche-Thomsen, chief executive of Living Time. The price decision will however, be reviewed once the court judgment comes, he revealed.
“There is some confusion in the marketplace, and some providers are withdrawing their guarantee periods. We felt, just to bring a sense of balance to the marketplace, we would go ahead and do this ahead of the ruling”, said Mr. Lerch-Thomsen.
“At the moment, we’re equalising up to men’s but we’ll need to see what the market does after the ruling. Ultimately the market tends to move together so we’ll keep this position under review in the future”, he added.
Canada Life had declared previously that it would stop providing a guarantee period for annuities from February 25 since it may become illegal to set up annuity plans based on genders.