In March, the European Court of Justice (ECJ) told insurers to stop charging men and women different premiums from 2012, which will lead to better deals for women who buy annuities and cheaper cover for young male drivers.
A similar ban on using age to calculate premiums would cut the cost of travel insurance for older people, who often pay much more than younger travellers.
Following the ECJ\’s decision on sex-based pricing, the EU may decide not to exempt the insurance industry from new laws on age discrimination, lawyers have said. Such a decision would affect other types of insurance. For example, young drivers could see their premiums cut.
Insurance is based on actuarial principles.
In other words, slicing and dicing the population into discrete chunks each of whom can be charged different prices. For they have different likelihoods of claiming on said insurance.
Is it that the people in Brussels don\’t care about how insurance works? Don\’t know? Or actively want to destroy it?
What next? Life insurance for 90 year olds must cost the same as it does for 20 year olds?
And no, don\’t laugh, they\’ve already done something just as stupid with annuities for men and women.