Tonight:
9°c
Admiral sees profit in 'nonsense' EU ruling
2 Mar 2011The EU ruling that insurers can't set premiums according to sex makes no sense - but it will lead to higher profits, says Admiral Group chief executive Henry Engelhardt.
"As an insurer I'm pleased. We will raise rates for young women, we won't bring them down much for young men. That means more profit," he said. "My consumer hat says this is a mistake. There is a difference between treating people equally and treating them the same. In this case the same turns out to be unequal. But that's what the EU says we have to do, so we'll do it."
Engelhardt, who helped found Admiral in 1991 and took it successfully onto the stock market in 2004, was talking as it unveiled another year of record profits for 2010, up 23% at £266 million.
Through its brands Admiral, Diamond, Bell and
Confused.com, the group insures about one 10th of the cars on British roads. Confused.com, the insurance premium comparison website, has had a tough year in a market that analysts say seems crowded and profits fell 34% to £16.9 million.
Engelhardt said: "Confused lost market share, but has kind of stabilised. The most important thing is better advertising. We need to make it more efficient."
Admiral has 4000 employees in in Wales where it is the only FTSE 100 firm
Reader views (5)
Surely the real problem is that an unelected body are making rules for commercial firms to be non -competitive.
So where does that fit into the definition of business; seems to me to be a bit like how we imagined old-style russia tried to function and we know where that ended.
- Steve Rudds, bromley kent, 03/03/2011 23:56
Report abuse
I totally aggree with Admiral, as I would do the same. Why should Admiral, as with any insurer, take additional risks in order to dance to Europes tune?
- David Graham, London, UK, 02/03/2011 18:57
Report abuse
Nonsense. If Admiral decides to increase premiums in an attempt to take advantage of the ruling, there will be other insurers who will be more than willing to have their customers by offering sensible premiums adjusted to the age, experience and accident history of the driver.
- John Buckeridge, London, 02/03/2011 17:49
Report abuse
"As an insurer I'm pleased. We will raise rates for young women, we won't bring them down much for young men. That means more profit,"
Greed pure and simple, there is no competition between insurers regarding prices, and no rational explanation for insurance frequently costing more than the car is even worth. No wonder so many people have no insurance, or are insuring and registering their cars abroad where premiums cost a fraction of what they do here.
- redsquare, london, 02/03/2011 14:42
Report abuse
But why should they not bring men's premiums down in proportion to what they add to women's premiums? Their overall risk hasn't changed. Unless of course there is no genuine price competition between insurers and consumers are paying a surplus.
- Bloke, Lambeth, 02/03/2011 14:28
Report abuse
