When it comes to P&C insurance rates, men have traditionally been penalized more than women. But that may change if Canada takes note of insurance risk calculation changes across the globe, reports CITopBroker.
For example, in March 2011, the European Court of Justice ruled that “it was legally inappropriate to link insurance risk to a person’s sex,” says Liz Michael, senior consultant at Willis Towers Watson in London. This ruling came into effect in 2012, with clarification of the court’s 2004 Gender Directive (which included opt-out clauses for insurers regarding the rating of men versus women).
Since then, European insurers have struggled to adjust. But, most have looked to other factors such as people’s ages, occupations and the types of cars they buy to calculate applicable insurance rates. Charlotte Halkett, marketing actuary at Insure the Box in the UK says, “You’ll find firefighters became more expensive, [while] nursery nurses became a lot cheaper, for insurance.”
If a similar change to insurance risk calculations was made in Canada, insurers would need to brace for making the rough transition between using old and new systems. However, companies would simply need to ask for guidance to get through “hump of uncertainty,” says Michael.
Read more on the changes European insurers are making, and how these are affecting men versus women.
Also, read:
Changes to insurance pricing on the way