A European Union sexual discrimination ruling will see premium pricing change in the UK by the end of the year, according to the Association of British Insurers (ABI).

The European Court of Justice decision, delivered last year, will stop insurers using gender to determine price from December 21.

Women taking out or renewing life and vehicle insurance can expect price rises when insurers remove gender as a risk characteristic. Females have often had cheaper car cover because statistics show they have fewer crashes.

And because of their shorter life span, men have always enjoyed higher annuities than women – another difference that will change under gender-neutral rules.

“Insurers and the UK Government fought for nearly a decade to retain the right to offer premiums and benefits priced as accurately as possible by considering risks linked to gender,” ABI Director-General Otto Thoresen said.

“But now the battle is over, the industry is focused on preparing to give customers ‘gender-neutral’ rates that are as fair as possible.”

London-based population health expert David Leon says in “virtually all countries women do have a slight advantage” in life expectancy. However, this gap is expected to disappear by 2030.

In Australia the average woman is expected to outlive her male counterpart by nearly four years, reaching the age of 83.9.

“We know there will be some differences in pricing and this will become clearer as the rule beds in,” Mr Thoresen said.