Insurers are set to scrap an exemption that allows them to treat gay couples differently to heterosexual ones, a trade body said today.

The Association of British Insurers said insurers were currently able to take into account the fact that someone was in a civil partnership when assessing premiums for life insurance and other protection products.

But the group is proposing to abolish the exemption, saying there was no need for insurance companies to differentiate between people in civil partnerships and married couples.

It added that the majority of insurers did not differentiate between people on this basis, and all insurance companies would cease to do so by the end of August next year.

Nick Starling, Abi's director of general insurance and health, said: 'The insurance industry is united against discrimination and in support of treating people fairly.

'Insurers base their treatment of all customers on a fair and objective analysis of the risks they represent. It is sensible to differentiate, for instance, in the case of age or gender.

'But we do not seek exemptions where there is no case for one. There is no need for the law to provide for different treatment between civil partnerships and marriages.'

Alan Wardle, director of public affairs at Stonewall, said: 'Stonewall supports the ABI's proposal to abolish this exception.

'We trust the Government will repeal it at the earliest opportunity. Insurance premiums should be based on someone's behaviour rather than their sexual orientation.'