April 2004

MEPs in the European Parliament have recently rejected an amendment to the Gender Equality Directive which would have allowed gender being used in underwriting decisions.

Currently women benefit from cheaper car insurance as they are deemed a ‘safer’ option to insure but this could all change due to the rejection by the European Commission. Women may face an increase of up to 30% on their insurance premiums and it could mean the end of women-only insurance companies.

The commission challenges that women drivers are not safer than male drivers, but the fact that men may be on the road more often than women would automatically mean that more of them are involved in accidents.

The Commission feels that gender neutrality should be upheld in the insurance industry and hence the use of actuarial factors relating to sex should be eliminated.

Ministers from all member states will discuss the directive on 1st June at the European Council.