Hungary protests EU gender neutral insurance guideline

The EU's equality guidelines prescribe that contracts for insurance and related financial services signed after December 21, 2007 must not use gender in the calculation of either premiums or payments. The Hungarian government, however, has already decided to request exemption.

The Finance Ministry and other relevant organizations are continuing to negotiate the details of these guidelines. If the EU refuses to exempt Hungary, it will affect clients currently paying a combined fee of Ft 406 billion and will result in a 5% - 50% increase in payments in the life insurance sector, as shown in a study by the Gender Committee, which was set up by the financial watchdog State Supervision Authority of Financial Organizations (PSZÁF).

In Hungary, there is an 8-9 year difference in the life expectancies of men and women, which plays a significant role in calculating life insurance policies, as well as for car, accident and health insurance policies. According to the study, the voluntary pension and health funds and life annuity for the real estate sector may also be effected.

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