The recent announcement that Europe and the UK must switch to unisex insurance rates for all consumers is the catalyst for our latest riskinfo poll, where we ask:
Should Australia follow Europe’s lead in banning Male/Female insurance rates in favour of ‘unisex’ rates?
The argument in favour of banning specific male and female life insurance rates is a philosophical argument tied to a move away from any social discrimination based on gender. Following the insurance judgement by the European Court of Justice on 1 March 2011, the European Commission responded in part:
“… it is now clear that an insurance company must not distinguish between women and men; all customers must be treated equally. This is a matter of respect for fundamental rights. It is now also becoming a matter of good business practice.”
The Association of British Insurers argued strongly over a long period against the move to unisex rates. Its arguments are summarised in our article: Male/Female Premium Rates to be Banned…, but essentially object to the removal of existing accuracy and value from the current male/female distinction, which is based purely on unemotional, factual actuarial data.
What is your position? As our social world continues to evolve, do you agree that any gender discrimination should be removed from insurance premiums? Or do you subscribe to the existing system and hold that any well-intended efforts at removing gender discrimination are outweighed by the potential downside to consumers that may be caused as a result of a move to unisex rates?
Tell us what you think should happen here…
Insurers make a decision based on specific details like weight, height, age, health, behaviour and the list goes on… is this not discriminatory too? Of course not! Neither is asking if a person is male or female, after all, most are usually one of the two.
Banning gender differentiation will not just affect premium rates. Gender specific underwriting will also have to disappear. No gender specific application questions, no gender differentiation between the underwriting approach for say family history. It will be interesting to see how the European male applicants deal with questions in respect of their gynaecological history! This is perhaps political correctness gone mad…. Vive La Difference.
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