Early reports from UK motor insurance comparator sites suggest premiums have risen for women and held steady for men after the EU gender directive took effect in December.

The rule stating insurers cannot price according to gender means women no longer pay cheaper premiums for car insurance, even though they have fewer accidents.

The move was expected to have resulted in higher premiums for women and a drop for men.

The Association of British Insurers opposed the directive, saying it goes against the principle of matching price to risk. But it says the market will remain competitive.

The ruling will also affect life insurance and income protection. Women usually pay less for life cover, but Fitch Ratings says age and health are stronger indicators of mortality risk than gender “and, hence, are already more significant pricing factors”.

Fitch does not expect to change any insurers’ credit ratings, but it says the ruling could distort pricing and introduce cross-subsidisation.