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Female focussed motor insurers need to re-evaluate ahead of the EU gender directive

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The private car market faces one of its greatest challenges when the EU gender directive comes into force this December.

The private car market faces one of its greatest challenges when the EU gender directive comes into force on 21 December 2012, both in terms of underwriting risks and marketing products to a unisex audience.

Premiums will rise for many female drivers while male drivers will see their premiums drop. Providers who have a large female book of business will need to address the risks involved in retaining this business as well as providing cover for the riskier male driver.

According to independent financial research company Defaqto, product differentiation in cover, marketing and sales processes will therefore be essential for motor providers in 2012.

Mike Powell, Defaqto’s insight analyst for general insurance, said: “The market faces one of its biggest challenges when the gender directive comes into force at the end of this year, both in terms of the underwriting and pricing of risks and how it markets products to its target audience.

“The introduction of the gender directive will create a level playing field. Although premium will still be one of the main purchasing decisions, this is a clear opportunity for the market to move consumer focus away from price and onto the quality of the actual product they are purchasing – and to differentiate their products in a crowded marketplace.”

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