A big topic at the moment in the insurance system in Germany is the gender neutral tariff. This rule is effective from the 21.12.2010. The main idea behind the change is that men and women should be treated equal and it is against the right of the European Union that insurance fees depend on the gender of the insured. The new law proscribes differences in fees because of the gender. But what does this mean for the insured persons, what changes are there and what is important when choosing an insurance now.
How did the law develop?
The charter of fundamental rights of the European Union proscribes in article 21 and 23 every discrimination based on gender. The equal treatment is one of the most important principles of the European Union. Already in 2007 there was a change in law to converge the fees for men and women but it was still normal to charge different fees. The European Court of Justice decided in 2012 that there need to be given stricter rules to change this grievance. For these reasons since 21.12.2012 there are no more exceptions and the gender neutral tariff is valid.
What kinds of insurance do have changes?
Almost every private insurance had differences in gender by now. The private health insurance for example was much more expensive for women because they have higher expectancy of life, go to a medicine more often and also pregnancy was made a reason. In the compulsory insurance this is different because the fees are calculated from the income.
Concerning the car insurance the male and mainly young men needed to pay a lot more because according to statistics they have more accidents.
In all private health and long term care insurances there are changes because of the gender neutral tariff. For male persons the fee is going to be a little bit higher but women have to pay less. You can get more information on details at you insurance and there are special calculators to compare the fees from different insurance providers. It is possible to find the cheapest insurance with these calculators. Women can also count on cheaper fees in pension insurance.
It is the other way round with car insurance or accident insurance. Most women do have to pay more whereas men only need to pay cheaper fees.
Do these changes affect me and how?
First of all, the new rules are only valid for new contracts, made after the 21.12.2012. With all contracts signed before this date there are no changes. The insurance is not allowed to take higher fees from your bank. If being happy with the actual insurance situation you do not have to think about the new rules at all. But if you want to have a new insurance you should make a detailed comparison and compare the providers and types of insurance. The assimilation of gender based fees does not cause an assimilation of the different providers. The differences there can be high enough.
If being insured in the compulsory insurance and thinking of a change to the private one should also think about the changes in law. The new fees do not affect the compulsory insurance but the private one is affected strongly. Men should have a close look how much they need to pay more for their health insurance. For women this can be the perfect time for a change because the fees can be much cheaper.
What other changes are there?
Till June 30. 2013 you can change your former tariff into the new gender neutral tariff. This normally doesn’t affect the fees but there are also changes in the benefits that can be better. To really get an improvement of the benefits you should ask a person in power from the insurance and get guidance.
The introduction of the gender neutral tariff has led to cheaper fees in the whole system. The insurance companies now fear that they will have to face a decrease in their income. They aren’t allowed to make differences in gender but they can take other criteria to calculate the risk of their clients. For example the waist circumference or hip measurement can now be trace for adiposis and cause higher fees. With the car insurance such evidence can be for example the horsepower of the car.