CIB News

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."

Source: Post Magazine

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.

¹Source-www.abi.org.uk   ²Source-Aviva claims data, 2009.   ³Source-www.aviva.co.uk/risksolutions/riskadvice/

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

Source: AXA Insurance