Advisers have delivered a clear message in response to our latest riskinfo poll. The question is:
Should Australia follow Europe’s lead in banning Male/Female insurance rates in favour of ‘unisex’ rates?
The overwhelming answer is:
‘If it’s not broken, don’t fix it.’
As we release this story, 90% of respondents to our poll agree that gender-specific rates should be retained. The main argument from advisers is that male/female premium rates are not subjectively developed, but rather based on factual research and data that feed into gender-specific life insurance tables:
“… Our system of rating males and females is not discrimination but rather based on the assessment of risk which in turn is a function of differing morbidity and mortality from information gathered over a very long period. We must not change what is right.”
Other adviser comments ask ‘what’s next’ if gender is removed as an insurance factor:
‘Next thing you know we won’t be able to ask a client their height and weight, whether they smoke, what occupation they do etc – where will it end?’
While the notion of gender equality is accepted and embraced by most, if not all, in the financial services and broader community, the belief that this should extend to banning male/female premium rates is a bridge too far for this adviser:
‘My initial reaction to this is to say no, gender equality is OK and even important and fair in many areas of society but not for the risk rating of personal insurance. I can see where the European Court of Justice is coming from but I don’t think they understand the ramifications for personal insurance and haven’t thought it through sufficiently.’
In terms of the ramifications, other comments suggest:
- All gender-specific underwriting would also disappear
- How will family medical history be treated?
- Women will be the big losers and have to pay more for life insurance
- This could be a windfall for insurers, who would apply female rates for income protection as standard and male rates for lump sum cover as standard
- Insurers could go broke as premiums and claims ‘go through the roof’
Noting that 7% of those who have voted in this poll agree that male/female insurance rates should be banned in favour of unisex rates, where do you stand on this question? Our poll remains open and we welcome your comments…
Dont stop at gender discrimination let’s ban drimination based on age, health and disabilty just to name a few. And what gives a mining boss the right to buy insurance at cheaper rates than the men at the coal face!
As Benny Elias used to say-“Deja vu ” all over again. 15 years ago L & G elinated female rates for IP-“unisex rates ” Were in. Result – huge increase in female IP business for L & G. Second result-female IP claims went through the roof. One year later, Trevor Matthews abandoned the experiment. Why is there no corporate memory. Bring back the ISC- at least they understood life insurance.
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