News - Women drivers’ cover decision due
Sex discrimination laws are to be extended to cover goods and services but will be exempt.
However, the role of gender in premium will be regularly assessed by the EC and other groups in the hope that it will be phased out over time.
At present gender assessment means women pay less for car insurance.
Industry fight
The proposal to extend sex discrimination laws to the assessment of insurance premiums will be discussed at meeting of the EU Council of Ministers on Monday.
Several EU countries, including the UK, are believed to be against the proposal.
The proposal requires an unanimous vote amongst ministers to get the green light. The UK insurance industry has waged a campaign to have the proposal defeated.
Insurance firms have that gender is a valid factor in assessing risk.
They have argued that since women have fewer accidents than men, they should enjoy lower car insurance premiums.
On the flip side, mens’ life expectancy is less than womens’ and as a result men enjoy higher annuity rates.
“The truth is that women have fewer car accidents than men and that males on average live 3 or 4 years less than females,” Malcolm Tarling, spokesman for the Association of British Insurers, told BBC News Online.
“If these factors changed then so would premiums.”
A solution, involving regular meetings between bodies, the insurance industry and representatives of EU member states to discuss progress on eliminating gender bias, is expected to be adopted by ministers.
A European Commission proposal to ban insurers from using gender to assess premiums is likely to be watered down, the Financial Times has reported.
The truth is that women have fewer car accidents than men and that males on average live 3 or 4 years less than females
