MSE News: Insurance costs to soar as gender discrimination banned

ScarletBea

Excuse me, but since when is a pension "insurance"? A pension is my savings under a different name that can only be touched on retirement.

To be honest, I never understood the way UK pensions works, and I'm glad I still have over 20 years to learn, but in my country, you pay each year into a pension, then when you reach retirement age that money is yours and you do whatever you want with it (investment, savings account, under your mattress, whatever).
The only thing you get a bit each month is the state pension, not your pension fund.

tacotaco

smk77 wrote: »

I fear this. If my wife's premium goes up to compensate their reduction in my premium then fair enough. We won't be better or worse off. However, her premiums will go up and no doubt mine will too to cover the "other cost".

So single female premiums will increase to reduce that of single males in the same age bracket. Married female premiums will increase to reduce that of married males in the same age bracket. If there were the same number of married female drivers as married male drivers in the same age bracket or whatever bracket is used, then you might expect the your change in combined premium to be nil. If your combined premium rises, it would be either because a) there are a lot fewer female than male drivers, or b) you're forking out free money to a for-profit insurance industry whose goal is solely to maximize profits by milking the consumer for as much as the market will bear, and will not bear the cost of any regulation changes but simply pass it on to you :rotfl:

MacMickster

Underwriter wrote: »

I'm not exaggerating. At the moment a 20 year old will pay less than a tenner for £100k of life cover because they are on average healthier and have a longer life expectancy. A 70 year old will pay about 10x that amount at least (there are a number of factors so dont' quote me on accuracy) also assuming both are currently clean (ie no medical conditions) lives.

So how would you set the premiums? You obviously don't work in the industry as your final paragraph proves, and neither do you have a clue about actuarial calculations.

So I will be interested to see your answer, then I'll tell you why you are wrong, and why insurance companies can't survive.

Sorry, but but it is you who doesn't have a clue. The ruling was about gender, NOT age, so will have no impact on the examples you have quoted.

Gaz1za2

This news is morethan just prices people; no more discrimnation in price yes, though also benefits and service provision so no more piroitising lone females in breakdown situations for example?!.... Where's the sense in that?, and as a man I'd much rather wait for a recovery knowing they were prioirtising a young woman with her child ahead of me; I was never consulted on this?

On the face of it, no great changes as Insurers (such as Shiel'as Wheels & Diamond) can still advertise to women only, providing they offer the same Product, Benefits, Services and price as an equivalent male!!! The reality is the difference between men & women is lifestyle driven, so a combination of factors though yes biology does also come into it to a lesser degree hence why Private Health Insurance will remain unaffacted (or will it?!?!)...

Gaz1za2

MacMickster wrote: »

Sorry, but but it is you who doesn't have a clue. The ruling was about gender, NOT age, so will have no impact on the examples you have quoted.

...though it is very true to lead one to the other; Age Descrimination was vetoed, though the legislation still exists(!!), so this action could bring the subject back to the table. However, totally agree it would be rediculous to allow a committe of our peers to vote on a subject which would directly benefit them (as most MEP's are in the upper heights fo the age scale!).

smk77

tacotaco wrote: »

So single female premiums will increase to reduce that of single males in the same age bracket. Married female premiums will increase to reduce that of married males in the same age bracket. If there were the same number of married female drivers as married male drivers in the same age bracket or whatever bracket is used, then you might expect the your change in combined premium to be nil. If your combined premium rises, it would be either because a) there are a lot fewer female than male drivers, or b) you're forking out free money to a for-profit insurance industry whose goal is solely to maximize profits by milking the consumer for as much as the market will bear, and will not bear the cost of any regulation changes but simply pass it on to you :rotfl:

Sorry, I didn't present that very well. According to BBC women up by 25-30% and men down 10%...Will I see my own premium drop? I doubt it.

lisyloo

Excuse me, but since when is a pension "insurance"? A pension is my savings under a different name that can only be touched on retirement.

Scarlett - under current legislation when you get to 75 you will HAVE to buy an annuity.
This pays a monthly sum in return for your lump sum.
It pays lower rates for women because women live longer and consequently higher rates for men.
It IS an insurance. You pay a lump sum up front and get a regular payment to live on based on amongst other things, your gender.

As some others have said this is MASSIVELY more fundamental than motor insurance.
It's not just another bill - it's what you have to live on for a large section of your life.

tacotaco

pinkteapot wrote: »

You're positively affected by the impact on car insurance. You're negatively affected by the impact this will have on pensions. Unless someone with some sense overturns this before you retire.
Men currently pay less than women for health insurance, so your costs there will rise.

True, but health insurance is optional, annuity is optional if i plan retire abroad in a more cost-efficient country, and since I currently have a car, motor insurance seems to be the only thing affecting me.

lisyloo

that's not bias it's biology

Men are biologically programmed to be competitive amongst other males whether it's resources (food) or females they are competing for.

Have you considered that socio-economic factors might have a significant impact on this?

Those are factored into statistics and further more will also be taken into consideration along with gender (which is a major factor but not the only one).
So for example if you are overweight or smoke then that will increase your premium.

lisyloo

Since I have a car, motor insurance is not optional.

A car is optional.
An annuity is currently not optional, so if you don't want to live on benefits when your retire then it's mandatory AND far more significant as it's your income not just a bill.