Ruling ‘goes against’ principle of matching price to risk, association says
The insurance industry will remain competitive despite the introduction of the EU Gender Directive, according to the ABI.
The directive, which came into force on Friday, prevents insurers from basing prices on the sex of the policyholder.
Before the directive came into force, women drivers typically enjoyed cheaper premiums than men for motor insurance because they are statistically safer drivers.
Following the directive, women are expected to see premiums rise for their car insurance, while men should see reductions.
The ABI said in a statement: “Insurance is all about matching price to risk. We have opposed the gender ruling on behalf of our customers, as it goes against this principle.
“Although insurers can now no longer take gender into account, they will continue to look at other relevant risk factors to ensure consumers benefit from the most competitively priced insurance. The insurance market will remain competitive and customers should continue to shop around to get the right policy at the best price.”
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