Insurance and discrimination: Guaranteeing full and equal access to basic insurance

25 February 2019

Policy brief

Finance Watch publishes new policy brief „Insurance and Discrimination – The importance of guaranteeing citizens full and equal access to the basic kinds of insurance“

Finance Watch’s policy brief on discriminatory practices in the insurance sector finds that the right of European citizens to equal treatment is currently not being protected under financial services law.

To combat current unfair practices and to give all European citizens access to the basic kinds of insurance, Finance Watch makes the following recommendations in its policy brief:

  • Prohibit ex-ante differentiated pricing.
    When differences in insurance premiums allow some consumers based on their identity characteristics to receive more economic benefits than others, it can be considered discriminatory and as such contradict European Union (EU) Charter of Fundamental Rights.
  • Ex-post differentiated pricing should only be calculated on the basis of actual damages. Calculating insurance premiums based on behavioural dimensions is discriminative.
  • New technologies for data collection should be prohibited for any discriminatory use.
    They should be strictly dedicated to allowing discounts in premium prices and to maintaining access to a basic level of insurance protection.
  • Mutualisation of risks should remain the key principle in the insurance sector.
    Any practices that undermine this principle should be strictly limited to fair and relevant purposes. This risk of exclusion is harmful to society as a whole when it relates to insurance that plays a key role in allowing equal and full participation in society.

The policy brief in 2Mn: