02 August 2011
Here we have an example of advancements in gender equality having less-than-desired outcomes.
In the UK, premiums for young female drivers are set to rise drastically after a ruling which bans using differences between men and women as a risk factor.
As of December 2012, UK insurers will be banned from giving favourable rates for safer female drivers. A tad unfair considering a young man is twice as likely to make a car insurance claim and 10 times more likely to be in a crash involving serious injury than a young woman.
Think tank Open Europe estimates a newly-qualified 17 year old girl will see her premium rise by 26%.
UK insurers may look to use loopholes where they can substitute other proxies for gender such as occupation or vehicle-type. Clever. They also warn that if they are not allowed to use such a crucial risk factor as gender, there will be an increased risk that premiums will not cover claims costs. Prices will have to be increased to compensate for this additional risk.
Never fear, because for every action there is an equal and opposite reaction - and this ruling is no different. Men’s pensions will be slashed by up to 10%. So there.