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Swedish women will likely start paying higher car insurance
Wednesday, 07 March 2012
Insurance companies in Sweden will no longer be able to carry out risk
assessments based on gender when a car insurance policy is taken out.
The effect of this will be that women will pay significantly higher
insurance premiums unlike before.
Today, auto insurance for men is about 45 percent more expensive
especially for men aged 18-25 years than for a woman of similar age.
Young men have long been described as more likely to cause accidents
than young women, but the risk assessment based on gender is something
the EU is now putting on top of its insurance rule.
“I understand that insurance companies need different parameters for
their risk management, but by gender and age will see each lot painted
with the same brush. Ideally, high-risk behaviours at the individual
level will increase premium. But it can be understood to require new
ways for insurance companies to collect and manage information,” said
Erik Lif, CIO at the company Insplanet that mediates insurance.
EU directive on sex discrimination issues relating to insurance has
been around since 2006, but if insurance companies by means of
statistical demonstration show that there are differences between the
sexes, there exceptions could be made.
The new directive comes into force on 21 December 2012 and involves
that insurance companies will have to make significant price
adjustments. The consequence is expected that young women will have to
pay more when they sign new car insurance. Something one of the
industry player claims is only short term.
“We will be better able to understand the risks at the individual
level. In the short term, maybe we are will not able to as such this
could mean a price increase for young women,” says Daniel Eriksson,
product director at the insurance company Folksam.
Exactly how large the increase will be will be determined by the
insurance companies which will need to be decided at which time based
on their data at the time. But when prices of car insurance for men and
women will approach each other, it also means that young men can look
forward to a reduction.
“Yes most likely young men could pay slightly less than they do today,
but I think that especially young women will experience a more
noticeable increase,” said Erik Lif.
There are already technologies used in professional service to monitor
a driver's driving habits with GPS - a navigation system. Insurance
companies association, Försäkringsbolagen, is now investigating whether
a similar box can be installed as a step to make risk assessments more
By Scancomark.se Team
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