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From the 21st of December 2012 (G-Day) there will be a fundamental change in how insurers calculate their premiums. This blog is the first of three articles to examine the implications for you and your insurance products.

Historically whether you were male or female was a major factor when determining premiums or benefits; however from the 21st of December gender can no longer be taken into account.

How will premiums be affected?

The cost of life cover has fallen considerably in recent years, due in part to increased competition between providers, and it has probably never been better value for money.

However, the changes coming as result of the gender ruling has introduced uncertainty. Initially the insurers are likely to be conservative, basing their pricing on the existing mix of men and women on their books, and an estimate of the mix for new business. They will also be influenced by their own marketing and product strategies, and by what their competitors do.

The upshot is that we are likely to see waves of price changes post (and possibly pre) G-Day as insurers adjust their pricing to reflect their initial sales and react to what the competition is doing.