Actuarial Tables Are Discriminatory
The Advocate General of the European Union's highest court has declared that insurance companies shouldn't be able to charge men and women different rates for products.
The suit was brought by plaintiffs complaining about men having to pay more for insurance. Advocate General Juliane Kokott didn't deny that insurers charge different rates based on actuarial facts -- women live longer, drive more safely, etc. -- but nonetheless insists that such differential pricing violates the EU's anti-discrimination codes. The Advocate General's opinion isn't binding on the court, but it's likely the court will follow her.
This is what happens when regulation runs amok, and political agendas trump economic reality. But that's Europe. Thank heavens nothing like that could happen here!
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May '10
Re: Actuarial Tables Are Discriminatory
Sounds a lot like community rating, doesn't it?
Sep '10
Re: Actuarial Tables Are Discriminatory
Oh my. I spent portions of several semesters learning applications of life tables, but I guess if some bureaucrat in Europe has decided that they're sexist, well, then thats good enough for me.
From the Actuarial Mathematics textbook on my shelf..
"We show how a distribution of the age-at-death random variable can be summarized by a life table. Such tables are useful in many fields of science. Consequently a profusion of notation and nomenclature has developed among the various professions using life tables. For example, engineers use life tables to study the reliability of complex mechanical and electronic systems. Biostatisticians use life tables to compare the effectiveness of alternative treatments of serious diseases. Demographers use life tables as tools in population projections. In this text, life tables are used to build models for insurance systems designed to assist individuals facing uncertainty about the times of their deaths. This application determines the viewpoint adopted. However, when it provides a bridge to other disciplines, notes relating the discussion to alternative applications of tables are added."
I always knew I was a nerd in college, but I never imagined I was misandrist nerd.
Jul '10
Re: Actuarial Tables Are Discriminatory
You know what else is discriminatory?
Underwear.
Women's underwear is, like, waaay more expensive than guys' underwear, right?
There's only three possible solutions:
Socialism has an answer for everything.
May '10
Re: Actuarial Tables Are Discriminatory
I feel bad for the word "discrimination" - it's been robbed of any respectable meaning. European muckety-mucks and their worshipers here in the US have decided it's not just wrong to discriminate based on unfair prejudices: discriminating between two people based on any difference, even if it's legitimate or downright vital, is now an evil thing for the government to protect us from.
Good thing the government is always around to tell us what to do, since making decisions is impossible without some sort of discrimination! Any group of politicians that can talk about this stuff solemnly and not realize what a joke they've become is truly, deeply detached from reality.
Jul '10
Re: Actuarial Tables Are Discriminatory
Jason Hart: I feel bad for the word "discrimination" - it's been robbed of any respectable meaning. European muckety-mucks and their worshipers here in the US have decided it's not just wrong to discriminate based on unfair prejudices: discriminating between two people based on any difference, even if it's legitimate or downright vital, is now an evil thing for the government to protect us from.
Good thing the government is always around to tell us what to do, since making decisions is impossible without some sort of discrimination! Any group of politicians that can talk about this stuff solemnly and not realize what a joke they've become is truly, deeply detached from reality. · Oct 1 at 9:09pm
Um, Jason....from your picture, it appears you have red hair.
Sorry, dude, but we don't allow gingers in here...
Jun '10
Re: Actuarial Tables Are Discriminatory
Looks like Kathleen Sebelius' dream has come true. Managing risk is so last century...
Jun '10
Re: Actuarial Tables Are Discriminatory
I say numbers are inherently discriminatory. Henceforth, answers to all math questions will be chosen from this politically correct list: "one, two, or many."
May '10
Re: Actuarial Tables Are Discriminatory
Deplorable. This is egalitarianism taken to its logical conclusion. Now insurance companies will be forced to deliberately neglect the inherent risk discrepancy between men and women. As a result, insurers will be forced to incur greater risk and, as a result, they will have to raise prices in order to cover such risk. If the political authorities impose price controls to prohibit increases in insurance premiums, then chronic shortages of insurance coverage will ensue. Oh, the causation.
Re: Actuarial Tables Are Discriminatory
Exactly. To which I might add, the word "equality" has been dumbed down to the point where it now means "sameness." I wonder if the EU has outlawed things like boys choirs. They used to be quite popular in Old Europe, but I suppose they're considered sexist now.
Aug '10
Re: Actuarial Tables Are Discriminatory
Jeepers, how many actuaries are there on this site.
Any thoughts on race /ethnicity distinct pricing? Is that also discriminatory?