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Unisex Insurance Pricing: Consumers’ Perception and Market Implications

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Abstract

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 European Court of Justice on 1 March 2011 concluded that any gen der-based discrimination is prohibited, so gender equality in the European Union (EU) must be ensured from 21 December 2012. Until then, gender-specific premium differentiation was allowed in most EU Member States for risks that are strongly linked to gender. We discuss the relevance of price differentiation criteria from the point of view of insurers, regulators and ethicists, and reflect on the degree of acceptance of such price differentiation by consumers, which is assessed empirically through an international consumer survey conducted in the United Kingdom, Germany, France, Italy and Switzerland. The perception of risk factors and of effective gender-related price differences is considered with respect to motor, annuity, term life and health insurance. Finally, we discuss possible consequences of the new regulation for the insurance industry.

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Authors and Affiliations

  1. Institute of Insurance Economics, University of St. Gallen, Kirchlistrasse 2, 9010, St. Gallen, Switzerland

    Hato Schmeiser, Tina Störmer & Joël Wagner

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  1. Hato Schmeiser
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  2. Tina Störmer
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  3. Joël Wagner
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Editors and Affiliations

  1. The Geneva Association, Switzerland

    Christophe Courbage

  2. Geneva School of Business Administration, University of Applied Sciences, Western Switzerland

    Christophe Courbage

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© 2016 The International Association for the Study of Insurance Economics

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Schmeiser, H., Störmer, T., Wagner, J. (2016). Unisex Insurance Pricing: Consumers’ Perception and Market Implications. In: Courbage, C. (eds) The Geneva Papers. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-137-57479-4_5

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  • DOI: https://doi.org/10.1007/978-1-137-57479-4_5

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