Admiral chief executive, Henry Engelhardt, recently stated that the ruling made by the European Court of Justice to eliminate discount car insurance for women through gender discrimination will actually hand car insurance companies the win.
Mr Engelhardt stated that short-term profit margins would be virtually guaranteed from the new court ruling. The motor car insurance provider incidentally reported a 23 per cent profit hike as well.
Insurers will most likely freeze car insurance rates for men and bring the amount their female counterparts pay in premiums up to a more legally acceptable level. Adding that the Court had gotten their wires crossed regarding ‘equal’ treatment and ‘being treated the same,’ Mr Engelhardt stated that women and men were treated equally in regards to how their risk factors and statistics were calculated, yet that resulted in different results for the prices of their insurance premims.
Admiral experienced growth in both their UK profits and business volumes throughout the previous year. The insurer increased its market share while benefiting from the more than 33 per cent rate hikes that spread across the entire industry in 2010.
Admiral did suffer some defeats last year, however. The firm’s US division had a disappointingly slow start from its inauguration in 2009. Admiral-owned price comparison site Confused.com also saw large declines in its market share, profits, and turnover.
It has been a struggle for the comparison site to hold on to its pole position. Competition for customers has intensified through several other highly popular comparison sites as well. One of the main problems the website faces is that customer loyalty for Confused is low in comparison to that of other customers.