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.

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You may call me a monster – but I'm glad that girl's lemonade stall got shut down

What's wrong with hard-working public servants enforcing perfectly sensible regulations?

Who could fail to be moved by the widely shared tears of a five year old whose innocent lemonade stall was brutally shut down by evil bureaucrats? What sort of monster would not have their heartstrings tugged by the plaintive “I've done a bad thing” from a girl whose father tells us she “just wanted to put a smile on people's faces”?

Well me, actually.

There are half a million cases of food poisoning each year in the UK, and one of the reasons we have stringent controls on who can sell food and drink, especially in unsealed containers, is to try to cut those figures down. And street stalls in general are regulated because we have a system of taxation, rights and responsibilities in this country which underpins our functioning society. Regulation is a social and economic good.

It’s also pretty unfair to criticise the hard-working public servants who acted in this case for doing the job they are no doubt underpaid to do. For the council to say “we expect our enforcement officers to show common sense” as they cancelled the fine is all very well, but I’m willing to bet they are given precious little leeway in their training when it comes to who gets fined and who doesn’t. If the council is handing out apologies, it likely should be issuing one to its officers as well.

“But these are decent folk being persecuted by a nanny state,” I hear you cry. And I stand impervious, I’m afraid. Because I’ve heard that line a lot recently and it’s beginning to grate.

It’s the same argument used against speed cameras and parking fines. How often have you heard those caught out proclaim themselves as “law-abiding citizens” and bemoan the infringement of their freedom? I have news for you: if you break the speed limit, or park illegally, or indeed break health and safety or trading regulations, you are not a law-abiding citizen. You’re actually the one who’s in the wrong.

And rarely is ignorance an excuse. Speed limits and parking regulations are posted clearly. In the case of the now famous lemonade stand, the father in question is even quoted as saying “I thought that they would just tell us to pack up and go home.” So he knew he was breaking the rules. He just didn’t think the consequences should apply to him.

A culture of entitlement, and a belief that rules are for other people but not us, is a disease gripping middle Britain. It is demonstrated in many different ways, from the driver telling the cyclist that she has no right to be on the road because she doesn’t pay road tax (I know), to the father holding up his daughter’s tears to get out of a fine.

I know, I’m a monster. But hooray for the enforcers, I say.

Duncan Hothersall is the editor of Labour Hame