Some protection and private medical insurance (PMI) providers could be forced to immediately close to new business on 1 March when a European Court decision on gender underwriting is announced.
It could also send those markets into a re-pricing frenzy with advisers finding themselves on the frontline as providers attempt to accommodate the new risk limits.
COVER understands the verdict, which cannot be appealed, could force insurers to stop gender-based underwriting immediately.
This would mean those providers with older legacy systems may have to stop conducting new business until they can update their systems or risk trading illegally.
The judgment may even compel insurers to retrospectively amend their policies.
It stems from a European Court of Justice opinion issued by Advocate General Kokott in September that supported the case brought by Belgian Consumer Association, Test Achats.
She declared insurers should not be able to use gender in risk pricing and suggested a three year transition period for providers to install gender neutral contracts and premium calculations.
By the end of the transition period the gender neutrality in future premiums and benefits would also need to be applied to those policies presently in force, she added.
However, the judges could go further than this, ruling all changes need to be implemented immediately.
If the transition period is included in the decision, it is likely to cause a significant phase of upheaval as insurers amend their contracts, underwriting and pricing.
And a large volume of churn is also expected within the market as clients seek the best deal for their circumstances.
Another dilemma would be dealing with clients who have guaranteed premium contracts.
The industry is aware of the potential implications but has attempted to avoid commenting for fear of appearing to be lobbying judges.
The publication of the decision itself could add further complications to the process as it is initially delivered in French, with an official English translation expected an hour or so later - potentially leaving the market in limbo for that time.
The full impacts of the equalisation are not completely understood but it is expected that life insurance premiums for women would rise significantly, while income protection rates for men would climb.
Critical illness costs may be largely unaffected as the product is similarly priced for both men and women.
Annuities could also be greatly affected with male rates likely to drop moderately but female levels rising significantly.
