Wednesday, 2 March 2011
ECJ makes Insurance Industry go ex-reason
The actual text of the judgment suggests there is more leeway than the industry and media have so far alluded too. The judgement is concerned that gender cannot be the sole basis as this is discriminatory and there is room for National Governments and companies to prove that it is only part of a calculation.
This won't help Sheila's Wheels who are clearly discriminatory.
Really though, what is the point, the market for insurance is massively competitive with hundreds of companies many of whom go bust (a good sign of a competitive market) each year. Statistics is the art of taking many factors into consideration; I fail to see how a court can really intervene. I can see a case for in say, Health Insurance, the market failing when people get really ill and the Government having to step in because support is really uneconomic and only justified on humanitarian grounds - but car insurance?
This should be another test case for the Government where national legislation should be used to confuse this ruling and so heavily reduce its impact. The Government has18 months to come up with a plan, I hope they make the right move and think of the poor actuaries!