Poll results from sex discrimination LinkedIn thread

Jul 5, 2011

Following the ruling by the European Court of Justice that insurance companies can no longer use gender to decide how much you pay for your premium we asked our followers on LinkedIn to tell us what they thought of the ruling.

The results were quite conclusive with 63% of the 304 votes cast disagreeing with the ruling and a further 11% were unsure.

Many of the 40 comments posted on the poll seemed to reflect this feeling with many people expressing concern at the ruling.

You can see the poll and discussions here - http://linkd.in/e8hMtL

Due to this ruling, young men will eventually see their premiums decrease and young women are likely to have to pay extra.

Association of British Insurers

The Association of British Insurers (ABI) suggests that young women could face an average increase of 25%, rising to 50% for the least experienced.

Research published by the ABI at the end of last year highlighted the possible impact of removing gender from assessing risk: 

For motor insurance:- women under the age of 25 could see an average rise of 25%t in their premium.

For annuities:- men approaching retirement could see an 8% reduction in annuity rates whilst rates for women approaching retirement could rise by 6%.

For life insurance:- women could see a rise of as much as 20% in the cost of cover, whilst men could see a fall of 10%.

Currently, young women pay less as they are seen as safer drivers. Whereas, on the other hand, statistics show that young men, in their late teens and early 20s, are more likely to speed, to be involved in drink driving accidents, and to claim on their policies.

The ruling could affect the cost of pension annuities, life assurance and health cover as well.

The ABI argues that people shoudl get a deal which accurately reflects their situation.

"The facts show young male drivers are most at risk of accidents on the road, so young women currently pay a lower premium for their car insurance," explains Nick Starling of the ABI.

The gulf between men's and women's motor cover is particularly wide for drivers who have recently passed their tests.

The British Insurance Brokers' Association

The British Insurance Brokers' Association (BIBA) said that currently the cost of the average car claim by an 18-year old man was £4,400, whilst that for an 18-year old woman was £2,700.

"The ruling will have a significant effect on the insurance industry which has used the system of risk based pricing to award discounts to lower risk drivers like young females who are statistically safer drivers," said Graeme Trudgill of BIBA.

"The industry will have to change its model and, effectively, females will now pay a cross subsidy for males on their insurance premiums."