There will be no changes to insurer credit rating in the wake of gender neutralisation, Fitch Ratings has reported.
According to the ratings agency, UK insurers should be able to cope despite the risk that gender-neutral premiums could distort pricing and introduce cross-subsidies between the genders.
Fitch stated: "We believe that insurers have the necessary underwriting and pricing expertise to maintain profitability, although there is likely to be some disruption for insurers while they adapt their systems to the gender ruling.
"For life insurance, the pricing impact is likely to be less dramatic because joint-life products, the bulk of business volume, typically have both genders factored into the pricing already."
It added that insurers would need to make better use of other pricing factors to reflect the risk of individual policyholders.
Fitch said age and health were stronger indicators of mortality risk than gender and already more significant pricing factors.
And it recognised that for single-life protection men may get a better deal post G-Day.
But it stated pricing shifts between the genders were unlikely to significantly affect overall business volumes and insurer risk profile.
Fitch said: "For many products, customers will largely have to accept the new rates, as there are limited alternative options.
"New premiums will likely include a loading to cover the unpredictable changes in the gender mix of the business and help offset potential increases in risks. Insurers may also look to pass implementation costs onto customers."
The pricing impact from the gender ruling could be blurred by the wide variability in premiums between competitors as they respond and position themselves strategically, Fitch predicted.
And other regulatory changes, such as those affecting the distribution of retail products, would likely significantly influence product pricing for insurers.
