Higos Opposes New EU Gender DirectiveFriday 2nd November 2012
On 21 December 2012 a new EU gender directive comes into force, which will result in higher insurance premiums for women. The new system of rating insurance risks, which will no longer differentiate between the sexes, will penalise female customers who currently receive more competitive rates than their male counterparts. It isn’t just general insurance which will be affected, as the changes will also impact on life insurance, health insurance, pensions and annuities.
Traditionally, men have paid more for their car insurance than women because statistics show that they have a higher chance of claiming. We believe the decision to alter the existing sytem is illogical and goes against the entire risk factor the insurance industry has been built upon.
Our Managing Director, Ian Gosden, explains “The current system of insurance premiums is based upon a well-established history of percentages and has served the insurance industry well thus far. The new directive will be disadvantageous for consumers and it is desperately disappointing as it prevents insurers from employing a legitimate and successful rating factor. It would seem that the law has prevailed over common sense and there are unlikely to be any winners. Young women are expected to be the hardest hit, with average increases estimated to be in the region of 25%”
It is crucial women understand the change and are aware of the impact it will have on their insurance premiums ahead of its introduction on 21 December. We are urging female customers to look into what effect this will have on their policies going forward.