AIG Golden Insurance Ltd. (AIG Israel) today launched a program for granting discounts of 10-35% on insurance premiums for women, compared with its premium rates for men. Ayalon Insurance (TASE: AYAL) presented a discount plan for comprehensive auto insurance with automatically extended coverage, including an exemption from deductible clauses.
AIG explained that a direct correlation had been proven between traffic violations and accidents. The company said that 88% of traffic violators, 83% of speeding drivers, and 97% of drunk drivers were men. AIG added that women constituted 40% of all holders of driving licenses in Israel, but were involved in only 22% of accidents and 9% of fatal accidents.
The target market for the program is women who are the principal driver of cars, and households with a second car is driven by a woman. “Damage caused to vehicles driven by women averages 12% less than the average damage to vehicles driven by men. Women drive better, and we’ll therefore charge the lower premiums,” said AIG VP marketing and sales Miki Barkan.
Barkan noted that women under 30 would be charged 35% less than men. “When they are older, the gap narrows, reaching 10% at age 55,” he added.
Published by Globes [online] - www.globes.co.il - on July 13, 2005