Over the last decade, a battle has raged between the UK and EU.
The EU has made several attempts to stop any difference in pricing on insurance, between men and women.
A sort of compromise has been reached.
The current Sex Discrimination Act allows sex discrimination in the provision of insurance, as long as it is based on actuarial or other data upon which it is reasonable to rely and the treatment is reasonable.
But insurers just have to say “men and women are different risks" with no more proof than claiming the Moon is made of green cheese.
The new European Union (EU) Gender Directive must be implemented in the UK by the end of 2008. It only allows gender discrimination in premiums or benefits if it is based on “relevant and accurate actuarial and statistical data”, which is “compiled, published and regularly updated".
The government has proposed that insurers will only be allowed to discriminate on the grounds of gender in setting premiums if the difference is based on relevant data that is published and regularly updated.
In its Discrimination Law Review Green Paper, the government said: “We propose to amend the existing insurance exception in the Sex Discrimination Act to make an insurer’s ability to discriminate on grounds of gender subject to the conditions required by the Directive, including the provisions relating to the compilation, publication and updating of supporting data.”
The Treasury will issue guidance outlining how the latter requirement should be met, but the Green Paper said insurers will be able to publish summary data either individually or through collective arrangements.
Insurers seem happy that it will all be simple, but not everyone is convinced.
Insurance claims and underwriting data may look like “facts” but in reality it is often a mix of historic information and estimates. Everything is open to interpretation and there will be nothing to stop pressure groups using its own experts to challenge individual or collective insurer “facts".
Private medical insurance: News update: June 2007
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