MSE News: EU ruling could throw insurance pricing into chaos

lisyloo

Thats right. If this goes through - no more insurance sex discrimination!
Perhaps the EU are useful for something at last for a change

Matrin - did you read the article?
Men currently receive positive discrimination for annuity rates (pensions) as you don't live as long as women (hence the pension needs to be provided for less time and is therefore cheaper).
This is provbably the most expensive insurance cover all and men will be worse off.
This is a double edged sword and a big admin cost for ALL of us.
We'll all pay in the long run.

Absinthe_Fairy

An interesting issue.

Why are the EU looking at gender in particular? If insurance is assessed on risk, why not assess gender as well as age etc? Surely making younger people pay higher driving insurance premiums is discrimination too, of a different kind? Why should that be any more acceptable than discriminating by gender?

mikey72

lisyloo wrote: »

Matrin - did you read the article?
Men currently receive positive discrimination for annuity rates (pensions) as you don't live as long as women (hence the pension needs to be provided for less time and is therefore cheaper).
This is provbably the most expensive insurance cover all and men will be worse off.
This is a double edged sword and a big admin cost for ALL of us.
We'll all pay in the long run.

So you'll pay more as a woman for your car or bike, until you get your pension, then you'll be getting more back. It'll even up before you die then.
Men will pay less, then get less back.
The insurers will make a good profit either way.

lisyloo

So you'll pay more as a woman for your car or bike, until you get your pension, then you'll be getting more back.

Well it's all speculation, but that's the theory.
Cynically I have a feeling they may put the lower prices up to match the higher prices.

It'll even up before you die then.

I agree there is some level of gaining and losing, but ultimately I think it will cost us all just through the cost of all insurers changing all their prices.
Plus I think some will use it to raise prices (like they did when VAT went up and in some countries when they converted to the Euro).

What happens to prices is pure speculation.
I would confident on some people being worse off.
I would not be confident on anyone being better off.

Sorry to be so cynical.

mikey72

You've changed your views slightly.

You have been a staunch advocate of free market pricing, and maximising profits.

I've been arguing that insurers are increasing profits by raising premiums, you've defended them for doing so when it affected younger drivers primarily as statistically they have most accidents.
If women are included in a now more dangerous group, I'm sure they will increase profits from raising insurance for women to match mens, and it will give them a bumper year.

I'm also sure that the statistics will justify it, and investment profit will be poor from underwriting to justify it.
But it's going to happen though.

lisyloo

You've changed your views slightly.

Huh?
I have not offered an opinion on whether I think this is fair or unfair, just on what I think might happen.

Where have I changed my views? (not that it's illegal to change your views).

you've defended them for doing so when it affected younger drivers primarily as statistically they have most accidents.

and if the law changes then they'll have to change with it.
That's nothing to do with my views.

Percy1983

Yay this would been no more penis premium tax on my insurance!

As I have always said, just because I share the same physical form as others in my species, it doesn't mean I am the same as them.

lisyloo

Yay this would been no more penis premium tax on my insurance!

Unfortunately you'll get less money from your pension (speculation of course), as you won't be assumed to have the shorter life span of those with your physical form, when making actuarial calculations.

mikey72

I must admit I can't get over-excited on this, a level playing field would be nice.

(I am still pushing to get auto-renewals at the same price as new quotes, or the ability to get all fees waived, and a full refund if they just go ahead anyway)

lisyloo

I'm not excited either, but then we are neither young nor old (I think), which means we aren't facing massive gender differences on our motor insurance (like 19 year olds) neither are we being forced to purchase an annuity (like 75 year olds).
I'm not convinced it will go ahead, but we'll see.