Motor insurer expects favourable impact on its women driver base due to low claims costs
Sheilas’ Wheels has outlined its plans for implementing gender-neutral pricing ahead of the 21 December 2012 EU Gender Directive start date.
The female-driver brand said it would introduce its new pricing structure to new customers on 18 December 2012.
The change to the EU Gender Directive will require the pricing of insurance to be on a gender-neutral basis for the first time across the European Union.
The brand, which currently insures more than half a million female policyholders, said the same pricing principle would apply to existing customers of Sheilas’ Wheels renewing their policies, with renewal invitations containing gender-neutral pricing quotes being applied from 18 November 2012.
From the same date, Sheilas’ Wheels also plans to progressively reduce its 30-day ‘quote guarantee period’ through to 17 December. This will ensure that any gender-specific quotes issued prior to this date are not guaranteed beyond the point when it would be unlawful for a policy to come into force using such a quote.
In addition, on 18 November 2012, the brand will temporarily stop offering car insurance quotes to new customers for policies where cover is scheduled to commence after 18 December 2012. This interim measure will be in place until Sheilas’ Wheels starts to offer gender-neutral pricing quotes for new customers on 18 December 2012.
No change to brand
The Esure-owned brand claimed that the look and feel of its brand would be unaffected by the change to the EU Gender Directive, and that it did not plan to change its marketing strategy.
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Motor rates for women are expected to rise as a result of gender-neutral pricing, particularly for those under the age of 30.
But Sheilas’ Wheels said this would help minimise price disturbance for the vast majority of its existing customers, predominantly female drivers, who would help influence premiums quoted for some time beyond the gender-neutral pricing implementation date due to female drivers’ historically lower claims costs.
Sheilas’ Wheels head of projects Jacky Brown said: “Although we have always believed the effects of this ruling will create many unforeseen consequences, not all of them positive for women, Sheilas’ Wheels expects that the impact for the hundreds of thousands of women we insure currently, and those who join us both now and in future, will be more favourable than what we expect to see in the market generally.”
Claims costs
Brown said that each company equalising prices ultimately needed to match premiums to claims.
“Our claims costs should continue to be relatively lower due to the sheer number of good, safe drivers who comprise our mainly female policyholder base today,” she said.
“What’s more our marketing and benefits will continue to appeal to women. We have always insured men from day one, but our marketing has always appealed to women more – that won’t change.”
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