Insurers open black box to escape gender ban

Motor insurers seeking to get around a European ban on charging male drivers more than women are turning to an innovative black box technology that could trigger an upheaval in the way car insurance is sold.

Britain's biggest motor insurer, Royal Bank of Scotland, is among those testing the technology, which allows insurers to monitor customers through devices in their cars, and charge according to how risk-prone a manner they drive.

Insurers, previously deterred by the high cost of so-called telematics insurance, now see it as the best hope for avoiding price rises that could drive some customers away, once the ban comes into force next year.

"There's a renewed interest, not least because of the gender directive," said James Rakow, insurance partner at Deloitte. "Most definitely, this second wave of interest seems to have got a foothold in the market."

Women, who pay less for car insurance than men because they are statistically less likely to crash, face an 11 per cent price rise once the ban takes effect.

Source:- business standard