19 January 2004

CEA note on Gender Equality in Insurance

Responding to the Commission proposal on gender equality of goods and services, the European association of insurers (CEA) strongly opposes the initiative. According to CEA, the directive would lead to more expensive motor, accident and term insurance for women, despite their lower accident rates and longer life expectancy. Furthermore, pension annuities, income protection insurance and, in some countries, private health insurance would be more expensive for men, despite their lower life expectancy and fewer health claims.

Furthermore, the directive would lead to a less transparent and therefore more costly system of insurance involving opaque cross-subsidies between customers. The total cost of insurance is likely to rise, and those who might be expected to benefit will in fact pay much the same as they do now.

On the question if lifestyle determines risk more accurately, CEA agrees that insurers do not rely on gender alone in assessing life expectancy and use other indicators in calculating prices. Nevertheless, it remains true that gender is an important guide to life expectancy and morbidity, all other things being equal, and provides an objective and relevant indicator of risk.

CEA position paper

© CEA - Comité Européen des Assurances