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Proposals by the EU to stop insurers using gender as a
factor when calculating premiums could mean road safety problems in the
UK.
Diamond, a direct insurer specialising in motor insurance
for women, warns that if the EU Directive goes ahead, as well as a significant
increase in premiums for women, an increase in death and injury is also
likely.
In insurance terms women, particularly young women, are
better drivers than men because they have fewer expensive accidents. This
is currently reflected in the difference in premiums that men and women
pay.
If the EU Directive becomes law in the UK, insurers will
have to charge the same rates for men and women. Young women could see
a 20-30% increase in their premiums, while young men could pay 10-20%
less.
This means cheaper car insurance for young men, making
bigger and faster cars more affordable for them to drive. The World Report
on Road Traffic Injury Prevention, issued by the World Health Organisation
2004, states that '…globally, road crash injury is a leading cause
of death for young drivers and riders. Men, especially young men in their
first few years of driving have higher rates of crash involvement than
women.' The Report concludes that '…excess or inappropriate speed
is a common contributory factor in crashes involving young drivers.'
Research based on the Canadian insurance regime should
make the EU think twice. In Canada some provinces allow insurers to use
gender and age when setting premiums, others have regulations that result
in little or no rating by age or sex. Deaths on the road are almost 20%
higher in the regulated provinces. A 20% rise in road deaths in the UK
would equate to an extra 700 deaths on the road each year."
Sian Lewis, managing director of Diamond said, "I
think it's only fair that young women's better driving is reflected in
lower premiums. Cheaper insurance for young men will mean more of them
on the roads, driving bigger and faster cars. All that will mean is more
death and injury on British roads."
Issue date: 11-05-04
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