Possible Market Implications of Unisex Insurance Pricing

The main reason for different insurance premiums and benefits is the use of different statistically proven risk factors in actuarial calculations for individuals. Basing its ruling on European Union Directive 2004/113/EC (the Gender Directive), the European Court of Justice on 1 March 2011 concluded that any gender-based discrimination is prohibited, so gender equality in the European Union (EU) must be ensured from 21 December 2012. The ruling definitively banning the use of the gender criterion in actuarial calculations for individual prices may have important consequences for the insurance industry and customers in the EU. In this short text, a number of implications are discussed. Possible consumer behaviour and potential responses from market players are outlined as well as possible further regulatory interventions. The implications of the definitive ban on gender-based discrimination are extensive for the insurance industry and may have a strong economic and legal impact on the individual product offering and pricing.

https://www.genevaassociation.org/media/887422/ga2014-ie70-schmeiser.pdf