European Parliament backs end to consideration of gender in setting insurance rates

Associated Press ^ | 3-30-04 | PAUL GEITNER, AP Business Writer

[Oldeconomybuyer]

BRUSSELS, Belgium (AP) -- The European Parliament on Tuesday overwhelmingly backed the elimination of gender as a factor in setting insurance rates, rejecting industry claims that would lead to higher rates for both men and women.

The EU assembly, meeting in Strasbourg, France, voted 313 to 141 to adopt the report on equal treatment in access to goods and services, including insurance and related financial services. The vote is not binding on national governments but politically difficult to ignore.

[Oldeconomybuyer]

Europe provides another glimpse of a potential Kerry administration.

[blanknoone]

They really ought to eliminate different rates for different ages too...after all that is agism. 96 year olds should pay the same amount for life (death) insurance as 21 year olds. If not it is discrimination, and the gov't really ought to do something about it.

</sarcasm>

[Salgak]

In a related issue, the European Parliament has come out strongly against the Law of Gravity, deeming it "unfair to persons of size".

[Mr. Bird]

Hmmmmm...don't know what to think of all this. Are women really better drivers, statistically speaking? Regardless, I'm not sure I think we can compare auto insurance to health insurance, can we?

I'm no actuary, but isn't this apples and oranges? Auto insurance covers liability and damage, generally speaking. You do not insure the front fender and not the back.

Health insurance, on the other hand, has specific language as to what "damage" is covered and what is not. Would it not be more equitable to allow women to opt out of "reproductive care" insurance in exchange for lower rates?

[Aggie1]

Oh brother, socialist Europes wisdom of trying to impose egalitarianism to the economics of insurance will raise womens insurance rates substantially. Are actuary tables to be declared illegal? How stupid. And the vote wasn't even close.

[dennisw]

Women are more prone to seek medical care while guys like to tough it out. This is why health insurance for the ladies should be higher.

[ClearCase_guy]

It seems pretty clear to me that if an Insurance company believes a certain level of coverage can be given to a man for $100 a month and the same level of coverage can be given to a woman for $50 a month than the expertise of the insurance company should be respected.

If the Central Planners demand a single rate for everyone, I would fully expect the "solution" would be to double the cost for the woman so that everyone pays $100 a month.

The gender doesn't really matter. If the high-risk people and the low-risk people are to pay one rate, then that rate will be the expensive high-risk rate.

[sphinx]

96 year olds should pay the same amount for life (death) insurance as 21 year olds

After all, some 96 year olds will outlive some 21 year olds, so mortality tables are not a fair indicator ....

Insuring against risk and socializing risk are two different things.