Young women face a rise in the cost of their car insurance by 11% from next year due to European rules which ban firms from pricing according to gender, according to new research.
A study by the German insurance association, the GDV, estimated the effects of standardising premiums for both men and women.
They estimated that young women motorists, currently perceived to be at a relatively low risk of accident, will see their insurance costs rise by more than any other group.
Previous figures have suggested that the ruling could add about £400 to the annual cost of car insurance for a young woman.
The latest research, carried out by Oxera, a firm of independent consultants, also found that, conversely, high risk drivers, such as young men, would be likely to get cheaper premiums.
The rules change on December 21 next year after a ruling by the European Court of Justice in March that it was illegal to set premiums based on the idea that either sex was more likely to crash.
However, it also had wider implications as the principle applies to any kind of risk assessment for insurance purposes, including pensions.
The researchers found that, on average, men could see a reduction in pension income from annuities of around 5% or more; women could see life term insurance premiums rise by around 30% or more; while young women could see motor insurance premiums rise by 11% or more.
The study claimed the changes could stop people saving for old age.
Michaela Koller, the director general of the CEA, the European insurance and reinsurance federation, said: “The ban on gender in insurance pricing may have a number of potential unintended negative consequences for consumers, insurance markets and society more generally.
“The use of evidence-based statistics is indispensable in actuarial science, and the study proves that gender is one of the factors that has an obvious impact on the risks to be covered in such products as annuities, term-life and motor insurance.
“The European insurance industry will, of course, abide by the ruling of the court but the implications of that ruling for consumers and insurers need to be understood.”
Discussions are currently underway in Europe as to whether such rules should be extended to cover pricing on the basis of age and disability, which insurance experts said could undermine the entire market and make insurance much more expensive for the majority of people.
http://www.telegraph.co.uk/motoring/news/8930102/Car-insurance-to-rise-by-11-for-young-women-after-European-ruling.html
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