Unisex premiums for driving insurance? EU crazy?
The recent judgement of the European Court of Justice (ECJ) dealing with the problem of sex discrimination as it related to actuarial risk calculations in insurance contracts (1) was a Belgian case where the ECJ had to interpret Article 5 of Directive 2004/113 (2). The Dire ctive itself emanated from the Council of the European Union. Article 5 states that: "1. Member States shall ensure that in all new contracts concluded after 21 December 2007 at the latest, the use of sex as a factor in the calculation of premiums and benefits for the purposes of insurance and related financial services shall not result in differences in individuals’ premiums and benefits." but then goes on to say that: "2. Notwithstanding paragraph 1, Member States may decide before 21 December 2007 to permit proportionate differences in individuals' premiums and benefits where the use of sex is a determining factor in the assessment of risk based on relevant and accurate actuarial