gender and a rating factor
Its a funny one - i wouldn't have believed it if I hadn't seen it in the newspapers myself (and checked it wasn't April 1st). A classic case of politicians meddling in things they don't understand and getting it wrong. I think its more an intelligence issue than a political issue, but maybe a bit of both.
For me it raises a few interesting questions about where this road is headed:
a) what is special about gender "descrimination"? Why is this protected, but not age, occupation, etc?
b) Why stop at motor? (Does this currently only apply to motor?) What about life insurance? And is it ok to give different annuity prices to men and women? If not, how about a 60year old vs an 80 year old? Where will it end?!
c) How much of problem is it for motor? We just need to refine the pricing models to use other rating factors, don't we? Ok, we're missing a good one in gender, but there are loads of other ones to make use of that may also be good proxies for driver ability/attitute/riskyness etc, aren't there? (But maybe not ones so objective and checkable.) Anyway, it will be interesting to see how the industry goes about solving this problem.
d) how does this impact sheila's wheels business plan?
Last edited by a moderator: Mar 2, 2011