What factors cannot be used by an insurer to cancel or refuse a motor insurance policy?

Insurers are prohibited from using certain factors, such as sex, gender, age, or race, to cancel or refuse a motor insurance policy. This regulation is in place to prevent discrimination and ensure that insurance practices are fair and equitable. Such personal characteristics do not have a direct correlation to an individual's risk level or likelihood of filing a claim, making them inappropriate criteria for decision-making regarding policy cancellations or refusals.

Using these factors could lead to unjust outcomes where individuals are denied coverage based on characteristics unrelated to their driving record or behavior. In contrast, factors such as driving history, coverage type, and claim history are relevant to assessing risk and making underwriting decisions because they more accurately reflect an individual's likelihood of filing a claim. By focusing on objectively relevant data, the insurance industry aims to promote fairness and maintain a system that treats policyholders equitably.