Insurance data shatters stereotype that women drive worse than men

Insurance data shatters stereotype that women drive worse than men | Insurance Business

Insurance data shatters stereotype that women drive worse than men

Data from four major motor insurance providers in Singapore shows that women drive safer than men, and subsequently pay lower insurance premiums on average.

According to a report by the Straits Times, data from four leading insurers – AXA, Liberty, MSIG and NTUC Income – showed that premiums for female drivers were up to 13.6% lower than males of a similar profile.

The report compared the premiums paid by motorists fitting the following profile: aged 25, 35, and 45, driving a new Toyota Altis, and with more than three years’ driving experience without a no-claims discount.

All four insurers charged women less than men. This is similar to findings in Europe, where women pay lower premiums than men, despite an EU ruling in 2012 banning gender-specific pricing.

According to Singaporean insurers, the difference in price is due to their own claims experiences, and various risk factors that influence how likely a driver would be to run into an accident.

“Based on our records, the claim experience for female drivers is slightly better,” said Peh Chee Kong, vice president and head of motor insurance at NTUC Income. “In other words, they generally make fewer claims than male drivers.

“Hence with all other factors being equal, the premiums for female drivers will be lower since they have a better risk profile.”

Insurers say that there is no sexism or prejudice involved here – it’s backed by hard data and actual claims records. For example, a woman with a poor claims history is much more likely to pay a higher premium than a man with a better claims history.

According to one driving expert, good driving skills have nothing to do with gender.

“It all boils down to experience,” said William Low, a driving instructor since 1984 and secretary of the Singapore Driving Instructor’s Association. “Most of the time, a poor driver is one who has not spent enough time on the road.”