"We've got the pinkest, most sequinned-up brand in the market place," said the boss of esure boss today, explaining why female-focused insurer Sheilas' Wheels is benefiting from new gender pricing rules.
European legislation that came into effect last November means insurers cannot use gender as a factor to price risk on policies, despite women being statistically safer drivers. "For Sheilas', that's been an absolute positive," said esure chief executive Stuart Vann.
"We've got a book that's around 95 per cent women, compared to 50 per cent at other insurers, and so when we removed gender from pricing in November, we had very little disturbance to our rates. It means a win-win situation for the company and for consumers already in the book - we get a higher retention rate, and can offer very competitive prices compared to peers who have had to push up female rates to male rates."
Vann said Sheila's Wheels was still attracting "far more females, so the brand has a natural risk selection".
Esure, listed on the London Stock Exchange in March, said the premiums generated by its eponymous insurance brand and Sheilas' Wheels grew 3.4 per cent year on year in the first quarter.
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