Brexit could bring cheaper car insurance for women

Britain's withdrawal from the European Union could herald the end of rules on gender-neutral pricing, which prevents insurance firms from offering better deals to women drivers.

While many insurers are still waiting to see the impact of the Brexit vote, "several industry advisers have said they are already assessing the chances of reform on gender neutrality", says the Daily Telegraph.

A 2012 EU directive banned insurers from setting different prices for men and women. Some firms say this resulted in higher prices, particularly for young women, who shoulder the cost of claims made by and against younger men.

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Young women are statistically less likely to have a car accident than men but under the current rules, the gender difference is not allowed to be taken into account. This results in women having to pay more than they otherwise might.

Former City minister Mark Hoban described the European Court of Justice ruling at the time as "extremely disappointing".

He added that while car insurers bore the brunt of the EU directive, life insurers "have also had to adjust some annuity products because in certain age groups, men are much more likely to have higher incomes and available funds".

Again, this undermines a statistical reality of insurance underwriting that recognises women live longer than men and so on average, their retirement fund needs to be eked out for longer."One of the questions we've had to answer is whether the breadth of the rules means the concept of indirect discrimination comes into play," Hoban said.