Gender neutral pricing won't work in the way you think

The change that will probably change again.

From today, insurance companies can no longer charge women and men different premiums.

An instant and (widely reported) consequence of this will be a financial hit for female drivers, who will see car insurance costs rise, and for elderly men - whose pensions will get smaller.

But this state of affairs probably won't last long. With the new rule, profit margins for insurance companies will shoot up (note that womens' car insurance is going up, rather than mens' going down). This is likely to lead to insurers competing over market share, causing premiums to fall again, and probably ending up somewhere in the middle of the two original points.

Or the situation might resolve itself another way. Discriminating by gender made sense for insurers: men, on average, drive more often than women, and drive more dangerously. Women, on average, live longer.

Now that those risk factors aren't factored in, the insurance industry might simply start accounting for them in a different way - perhaps looking at how much you drive. This way they can still discriminate against male drivers - but not so explicitly. What about pensions? Well, as men are more likely to be bald, insurers could start discriminating by forehead:hair ratio, or indeed by blood testosterone levels. The point is that population risk analysis always means discrimination - and if it doesn't happen one way, it'll happen another.

Women drivers will take a hit. Photograph: Getty Images

Martha Gill writes the weekly Irrational Animals column. You can follow her on Twitter here: @Martha_Gill.

Photo: Getty
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Cabinet audit: what does the appointment of Liam Fox as International Trade Secretary mean for policy?

The political and policy-based implications of the new Secretary of State for International Trade.

Only Nixon, it is said, could have gone to China. Only a politician with the impeccable Commie-bashing credentials of the 37th President had the political capital necessary to strike a deal with the People’s Republic of China.

Theresa May’s great hope is that only Liam Fox, the newly-installed Secretary of State for International Trade, has the Euro-bashing credentials to break the news to the Brexiteers that a deal between a post-Leave United Kingdom and China might be somewhat harder to negotiate than Vote Leave suggested.

The biggest item on the agenda: striking a deal that allows Britain to stay in the single market. Elsewhere, Fox should use his political capital with the Conservative right to wait longer to sign deals than a Remainer would have to, to avoid the United Kingdom being caught in a series of bad deals. 

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.