by Andrew Newman


Peripheral vision T


he evil machinations of the powers across the English Channel to undermine gender discrimination in UK insurance underwriting reminds that it’s not just the life and pensions sector that’s involved.


The 1990s saw the


discounted premium for female drivers in the motor sector really take off. Yet, despite the headlong rush to promote ‘me too’ female premium discounts and the so called ‘Lady Driver’ policies, there were pockets of resistance. Male chauvinism at work or simply prudent underwriting?


Let’s go back to a regional broker roadshow at the time when female driver schemes were just about to take off with a bang. A packed throng of local brokers was treated to a rare visit from a motor Underwriter, not normally prone to be seen north of Houndsditch. (The capital ‘U’ for underwriter reveals that he ran a Lloyd’s syndicate, and a successful one too, although of course now long since disappeared from the scene.)


And when we say he ‘ran’ the syndicate, that was literally true. The Lloyd’s Underwriter was the monarch in his own kingdom. Forget about finance directors, compliance officers, and marketing gurus - these worthies ran their own show from top to bottom, often signing every claims cheque themselves and knowing their own business inside out. ‘Gut feel’ tended to overrule what management


32 insurancepeople MARCH 2011


information existed in that era. Back at the roadshow, the man with the capital ‘U’ fields the usual questions from his audience. There’s no ‘grey’ or uncertainty in any of his answers - which basically consist of a forthright “Yes!”, “No!” or “Black” or “White”. A lady broker stands up to ask our man when he might be thinking of implementing a female driver discount. The subsequent conversation went something like this:-


Underwriter: I won’t be doing so.


Broker: Why is that?


Underwriter: Because in my opinion female drivers do not deserve a discount.


Broker: But that contradicts what’s happening in the market.


Underwriter: (Pause) ...Well, let me show you what I mean. You’re standing up, looking at me at this moment. There’s a window on your left. Now, still looking at me, and without moving your eyes or head, can you please tell the audience and myself what you can see through the window?


Broker: Without moving I can’t see anything.


Underwriter: Exactly! Women have no peripheral vision. That’s not meant to sound offensive. It’s a fact. Not necessarily one


in association with:


by Andrew Newman


you’ll find in any medical textbook. It’s solely my gut feel opinion based on reading every claim file that has come through my door during the past 30 years.


Footnote: The majority of the audience at this particular roadshow comprised males. Comparing notes afterwards, the truth was that not one of us trying to pass this test at the time, even with furtive eye movements, could see anything either. But by then, the Underwriter had made his point.


●


This reluctance to venture into the area of the lady driver scheme was far from universal. The mainstream market lapped it up, and to be fair, enjoyed some success with it.


But there was another group of motor underwriters - this time content with a lowercase ‘u’ - who wanted no part of this new, highly competitive arena. This was a canny bunch of small, independent operators who were the early pioneers of gender-related motor underwriting.


By the time the rest of the market cottoned on, these people had already made their killing and moved on to another niche. Rating against the market, rather than rating against risk, they lurked under the radar, hidden away among the myriad of small insurers that existed at a time when there were still over 40 separate


Lloyd’s motor syndicates and goodness knows how many companies.


So, no bells or whistles. No mega advertising. No special scheme policies. No mention of ‘lady’ in any documentation whatsoever. Their timing was perfect. The underwriting guide had long since disappeared, and they were able to hide their rating inside their matrix, cherry picking the risks the overall market was over rating. Where are they now? This happy few? The myriad collection of small independent motor insurers that once allowed them a low profile has gone forever. The number of Lloyd’s motor syndicates can now be counted on one hand. Many of this band still keep their heads down, away from the limelight, and nowadays ply their wares under the MGA banner.


Grumpy Old Man section


Just room while talking about lack of peripheral vision for a short rant on Hollywood’s apparent ignorance that it even exists. How many times does a character open his front door at home or in a hotel, peer out, look left and right, and there’s no one there. He - and strangely enough it’s always men - starts to close the door, looks down, and spots the relevant object that’s been delivered. Try it sometime. I defy you not to see the body lying there, or the baby in the basket.


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