User:Tonylopessa/Insurance for women

Insurance for women
Internationally, many insurers offer women better insurance rates than their male counterparts.

This is based on the fact that according to research studies, women are lower insurance risks than their male counterparts. They take fewer risks, make more careful decisions, usually stick to the speed limit and frown upon road rage. In addition, the cost of repairs to vehicles crashed by women is on average, lower than the cost of damage caused by men.

This is further supported by statistics in the UK that state that the cost of the average car claim by an 18-year old man was £4,400, while that for an 18-year old woman was £2,700. In South Africa, the cost of the average car claim by an 18-year old male is R11 997.00, while that for an 18-year old woman is R8668.00.

With these statistics and research findings in mind, insurers, like 1st for Women Insurance Brokers in South Africa and Sheila’s Wheels in the UK, are able to charge insurance premiums that reflect women’s lower insurance risks as drivers, and the lower cost of their motor accident claims.

European Court of Justice gender ruling
In March 2011, the European Court of Justice prohibited the use of gender in underwriting premiums, with car insurance, life insurance and pension annuities.

The ruling, which will take effect in December 2012, means that insurers across Europe will no longer be able to use sex as a factor to determine whether someone represents a bigger risk in insurance terms, even though historical evidence shows that being male or female has a bearing on frequency and size of claims.

The ruling has been described as "utter madness" and a "setback for common sense" by Conservative MEP Sajjad Karim and UK Independence Party MEP Godfrey Bloom accused the European Court of "social engineering". "The EU judges do not understand that insurance premiums are not random chance but risk-assessed," he said.

The Association of British Insurers estimates that the decision will actually reinforce price discrimination, with women drivers under 26 in the UK facing a 25% rise in car insurance rates, with a 10% drop in rates for fall for men.

Discrimination in South Africa
According to constitutional law expert, Pierre de Vos, as quoted in a leading Sunday newspaper in South Africa, “South Africa’s jurisdiction on equality is different from that of the EU in that our primary focus is not on treatment, but the impact or effect of legislation. If the effect is to perpetuate a stereotype or unproven assumption, then it will not be allowed. However, if statistics can show a factual difference, especially if it works in favour of a group that is traditionally disadvantaged – such as women – then there should be no problem.”

The insurance industry as a whole differentiates but does not discriminate.

“Discrimination implies an arbitrary distinction that is not based on merit whilst differentiation is a distinction based on merit. The entire insurance industry differentiates in terms of age, gender, geography, years of insurance and licence period, for example,” says Robyn Farrell, managing director of 1st for Women Insurance Brokers.

de Vos notes that there is a law against blind people obtaining a driver’s licence. “Blind people are disadvantaged, but there is clearly a good reason for this law. In the case of sex discrimination in insurance, women are known to be a more vulnerable group, so the fact that the discrimination works in their favour means I’d be surprised if anything changes.”