CMI data by age and gender: critical illness insurance

Document description

When underwriting insurance policies, insurance companies base their premiums on a wide variety of factors that may affect the claims cost they observe among their customers. Onefactor is gender.

From 6 April 2008, the Sex Discrimination (Amendment of Legislation) Regulations specify certain conditions under which insurance companies are allowed to differentiate premiumsbased on gender. One condition is that the use of gender as a factor in the assessment of risk for individual policies is based on relevant and accurate statistical data. A second condition is that this data must be compiled, published and regularly updated in accordance with guidance issued by HM Treasury.

This bulletin illustrates differences in claim rates between men and women for critical illness insurance written in the UK.