The wires are buzzing this morning with news that the European Court of Justice has, as anticipated, outlawed the use of gender as a variable for actuaries to set insurance premiums.

The ruling will not apply immediately (or retrospectively) as had been feared, but from 21 December 2012, giving insurers adequate time to update their pricing and systems.

Some PMI insurers will be required to equalise their prices, but the overall effect on the market will be slight, because most insurers do not price on gender. Financial protection products such as life and income protection insurance will be more significantly affected.

Lest anyone think that this development will actually benefit consumers, insurers will have to increase their premiums to comply with the legislation, pricing some people out of the market.

Update: PruHealth, one of the two PMI insurers to price on gender, has announced that it will be equalising its prices from 1 April 2011.