From the start of the new fiscal year (6thApril) there will be several changes affecting employment law and therefore income protection insurance.  New rules about taking action in Employment Tribunals will make it more expensive to challenge employment terminations, and from the same date, new starters will have no access to tribunals for 24 months instead of the current 12. This could affect the price and cover offered in many income protection policies.

More sweeping changes are likely in December when a ruling by the European Court of Justice comes into effect. At the moment, UK insurers have an ‘opt out’ clause in the European ‘Directive on Equal Treatment’ (reference (2004/113/EC) more usually known as the Gender Directive). This opt out clause allows them to consider gender when assessing and pricing insurance risks. From the 21stDecember 2012, this opt out will be revoked.

The net outcome is that any insurance policy that currently includes gender as a risk factor is likely...