All Estonian insurance companies will have to adhere to the unisex principle when concluding insurance contracts starting from December 21, 2012, the Estonian subsidiary of a banking group SEB said in a statement.
This means that the life insurance rates for women will come to equal those for men. In December, all insurance companies will change over to the unisex principle. This means that, for women and men of the same age, insurance premiums will be equal for the same sum insured, writes LETA.
"Introduction of the unisex principle will translate into an equal but also higher cost of life insurance for women and men. It is the cost of a life insurance contract for women that will go up significantly, as women live longer and enjoy better health. Accidents and fatalities happen to men more often, as a result of which men's riskier behavior will begin to be offset by women's higher insurance premiums. That said, the new prices will not affect any contracts that have been concluded already," said Indrek Holst, Chairman of the Management Board, SEB Elu- ja Pensionikindlustus.
For instance, a basic risk insurance contract concluded for 15 years for an insured sum of 50,000 euros will cost a woman of 30 approximately 8.50 euros per month under SEB's current price list, whereas it will come to about 16.50 euros under the new unisex price list. Given the same parameters, for men the premium is 18 euros at the moment but will be also 16.50 euros at the new rate.
"SEB's statistics indicate that there are increasing numbers of clients thinking ahead when it comes to risks and long-term financial obligations in life. Compared to 2010, the number of life insurance contracts concluded is up 1.5 times. According to SEB's life insurance loss statistics, the majority of cases of illness are caused by cardiovascular disease or malignant tumours. Also remarkably high is the proportion of men who have had accidents. In 2012, SEB Elu- ja Pensionikindlustus has paid out 25% more in an average life insurance loss than in 2011. In 2012, the average loss amount has been 8,940 euros," added Holst.