Insurance Technology Industry News
[November 15, 2012]
The possible impact of the gender ruling on female drivers is being blown out of proportion
Nov 15, 2012 (Datamonitor via COMTEX) -- The impact of the EU gender ruling is generating much hype around the market; however, it will only affect female drivers under the age of 30, and therefore only 6.7% of all drivers. While this group may face price increases, Datamonitor's 2012 General Insurance Survey suggests that they shop around for quotes at renewal as much as men, meaning they should still receive competitive quotes.
Since the gender ruling was announced in 2011 there has been a ripple of fear around the insurance market on how this will impact insurers' pricing models. This has particularly been the case for car insurance, where for those aged under 30 there is a distinct difference in risk profiles between male and female drivers, with men being the riskier drivers and therefore being charged much higher premiums. However, from December 21 onward insurers cannot use gender within their pricing models, which means that women will potentially pay more while male drivers will pay less.
Despite a great deal of speculation as to the drastic effect this decision might have on the car insurance industry, it is only likely to impact female drivers under the age of 30. These women represent 13.6% of all female drivers and just 6.7% of all drivers, making them a minority group rather than the majority many are claiming. While this group does face price increases, Datamonitor's 2012 General Insurance Survey suggests that female drivers shop around for insurance quotes as much as men when it comes to renewal, so they should still be able to find a competitive quote.
For more information on this topic please refer to the Datamonitor report Insurance Pricing Post Gender Ruling (April 2012, CM00190-003) or contact Patricia Davies at firstname.lastname@example.org.
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