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It was not immediately clear exactly how insurance prices would be affected, but the British think tank Open Europe said British insurance providers alone will need an extra 936 million pounds ($1.52 billion) under the new circumstances. It said that on average a 17-year-old female in Britain would have to pay 4,300 pounds ($7,000) more in car insurance over 10 years while a male would save 3,250 pounds ($5,300) over the same period. Philip Jarvis, head of insurance at the international law firm Allen & Overy, said it was tough to put financial figures on the change, but that it was clearly a major ruling. "It is nontrivial, it is a significant change to the industry," he said in an interview. He expects overall charges to rise. Since the gender analysis is out, insurers have to spend more money figuring out pricing. Insurers could push up charges across the board to protect themselves or fine tune other, more expensive ways to differentiate between people, he said. "The chances of this change leading to lower premiums for more people is relatively low," he said. The British Conservatives called the ruling outrageous. "It is a statistical reality that young men have more accidents than women so it should be reflected in their premiums," said European Parliament member Sajjad Karim. Kevin Clinton, head of road safety at the Royal Society for the Prevention of Accidents, saw a possible positive consequence of the ruling. "If insurance premiums for young male drivers fall, this might encourage those who currently drive uninsured to take out insurance, which would be a good thing," Clinton said. "On the flip side, some young female drivers might be discouraged from insuring their vehicles if the cost of their premiums rises significantly."
[Associated
Press;
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