A European Court of Justice ruling will end the use of gender in insurance pricing.
The British Insurance Brokers' Association said the ruling will have a significant impact on customers and the insurance industry and is almost certain to mean that young female drivers will see an increase in their motor insurance premiums from December 2012.
It said that insurers will no longer be able to use the exemption for insurance to base female driver premiums on statistics that show that they have lower accident rates and costs.
The average 18-year-old male claims cost is £4400 compared to the average 18-year-old female claims cost of £2700.
Insurance companies will have to re-evaluate their pricing models for implementation by December 2012. Younger female drivers renewing their motor insurance after this date are likely to see a significant change.
Steve Foulsham, Biba technical services manager, said: "Unisex rates will have to apply for motor insurance with the likelihood of an increase in premiums for females which could typically be up to 25% but in some cases more than 50%. However it's unlikely that premiums for male drivers will reduce much as their risk is still considerable."
Graeme Trudgill, Biba head of corporate affairs, said: "The ruling will have a significant effect on the insurance industry which has used the system of risk based pricing to award discounts to lower risk drivers like young females who are statistically safer drivers. Male drivers under 21 are twice as likely to have an accident than a female under 21. The industry will have to change its model and effectively females will now pay a cross subsidy for males on their insurance premiums."
Just in case you didn't hear about IPT increases in the Emergency Budget on 22nd June 2010, please note that IPT rose from 5% to 6% while the higher rate of 17.5% charged on some insurances such as travel insurance increased to 20% as from 4th January 2011.
You may have heard that Fortis has rebranded to Ageas.Whilst the company name has changed, the product offering and high levels of service remain the same.
Your policy cover and insurance certificate is not affected in any way.If you should need to claim or contact them, you can do so in the normal way.
Who are they?
Ageas is a leading provider of award-winning Personal, Commercial and Protection insurance in the UK.Insuring in the region of 7.6 million customers and working with a range of partners, Ageas is recognised for delivering consistent and high-quality customer experiences.
Their new name represents the 180 year history and where they want to be in the future.The “Ag” refers to the name of their Belgian company founded in 1824, the “eas” refers to their core markets in Europe and Asia.
What is the correct pronunciation for Ageas?
The name Ageas is pronounced “a-jee-as”.Pronounce ‘a’ as in ‘agenda’.
What happens if I send an e-mail to a Fortis address or type in the Fortis website?
A redirection is in place, so everything will still work for a period of time.
The cost of fire damage is rising, with both occupied and vacant properties being affected. In fact, the problem is at its worst since records began.
Statistics from the Association of British Insurers show that fire claims rose again by a further 20% between the first half of 2007 and the first half of 2009, with arson contributing prominently to the cost¹.
Allister Smith, property risk manager for Aviva, said, "Fire claims are at their highest and we are seeing an increasing number of arson claims crossing our desks. Over 40% of all fires in industry and commerce are now started deliberately."²
Another major concern is fire damage to unoccupied and unfurnished properties, with around 9,000 fires a year occurring in empty buildings³.
You should ensure properties are being regularly inspected, re-secured and repaired.
Ideally, businesses should carry out a weekly log of inspections to make sure the building remains secured. And they should also ensure that the perimeters around the property are secure too - with good quality, well-maintained fencing, walls and gates, and entrances to windows fully sealed and boarded up.
It's a small price for your clients to pay considering the damage and destruction arson can cause.
As the temperatures drop this winter, it's important for you to keep your pipes safe from the cold. That's because burst pipes, caused by water freezing and expanding, account for the majority of escape of water claims received every winter.
To help you avoid the disruption and potential home insurance premium increases that burst pipes bring, we have produced his handy seven step guide.
1. Keep central heating at a minimum of 12°C (54F)
2. Insulate pipes in your attic and crawl spaces
3. Seal up small gaps in your walls
4. Keep cabinet doors open
5. Lag your loft, water tank and water pipes
6. Leave your loft hatch open
7. Drain your system if your're away for a long time over winter
In view of the serious flooding experienced throughout the county, please find listed below emergency helpline numbers for the majority of our insurers who are operating 24 hour 7 days a week helplines.
AXA - Home 0870 556 1161 and Motor 0870 903 5999
Ageas (formerly Fortis) - Motor 0845 122 3018
NIG – Home 0845 607 1626
Norwich Union – Home 0800 012 345 and Motor 0800 678 999
Royal & Sun Alliance – Home 0870 165 0501 and Motor 0870 165 0501
Zurich – Home 0845 601 0869 and Motor 0800 400 641
Our office is open Monday to Friday from 9am to 5pm, tel. no. 01228 531071.