EU directive on gender discrimination leaves car insurance industry in confusion
19 Nov 2012
An EU Directive, which comes into effect from 21st December which prevents insurers from taking gender into consideration when providing motor insurance, has left insurance companies in some confusion according to R.A Rossborough (Insurance Brokers) Limited.
The Directive will mean many female motorists, who have enjoyed cheaper premiums than their male counterparts, may see prices rise when the ruling comes into effect. This may also apply to female motorists in Jersey, despite the island not being an EU member state. In simple terms, for an exactly equivalent risk, where the only difference is gender, the premium should be exactly the same.
'Whilst Jersey may be outside of the EU, the insurers are not and therefore the ruling will apply to Jersey motorists,' said Rob Hewlett, director, Rossborough. "We are in ongoing dialogue with our major providers to find out the best way to minimise the impact on female drivers while making sure that the way policies are quoted remains fair and, most of all, competitive. By the time the Directive comes into force, the pricing for all our motor insurance products will be "gender neutral".
'However, I'm delighted to say that our major insurance partner, Ageas, who are also one of the top four motor insurers in the UK, are currently taking the view that existing contracts ie renewals, are not affected by the Directive and so female motorists shouldn't expect to see any unusual changes when their insurance comes due for renewal.
'The change is due to come into force on 21st December. Any policy holders who wish to discuss the potential implications can ring us on 01534 500500 to discuss their policy. As soon as more information becomes available to us, we will share it with our customers,' concluded Mr Hewlett.
Rossborough is a local insurance broker, dedicated to providing island residents and businesses with tailored insurance solutions. The company was recently awarded Chartered Insurance Broker status, one of only 100 firms that have achieved this and the first in Jersey. This celebrated accolade is awarded in recognition of a company's professionalism and commitment to raising standards of knowledge, capability and ethical practice.