Gabrielle Wood
Chief Underwriter RGA Italy
Nicky Virgo
Vice President Head of Underwriting Manual Development (ret.)
Defending the “Right to Underwrite”
The entire insurance industry is built on the principle of differentiating according to risk. However, there is a growing trend around the globe for new legislation that challenges insurers’ and reinsurers' ability to differentiate risks and to charge premiums accordingly.
While intended to prevent discrimination in insurance offers, such efforts can also inadvertently limit consumers’ access to coverage. Amid increasing use of data and technologies, the issue continues to grow more complex.
So, how can we defend the “Right to Underwrite”?
Knowledge is power: understanding the jurisdictional landscape
It is important to monitor jurisdictional developments carefully and frequently review guidelines based on current medical definitions. Read below for some recent updates.
- Several states in the U.S. have passed laws limiting the use of underwriting variables including family history and genetic information, driving records, criminal conviction records, credit scores, and any form of facial recognition.
- In the U.K., the Association of British Insurers has published guidance on the proper use of evidence related to mental health conditions during the underwriting process.
- In the EU, there have been calls to guarantee the Right to Be Forgotten (RTBF), stemming from requirements for individuals to have certain insurance in order to obtain a mortgage.
Learn about these developments and more in the RGA Knowledge Center »
How can insurers and regulators navigate a way forward?
It is crucial that reinsurers avoid discrimination against protected classes by ensuring transparency in underwriting guidelines and data-driven models. Perhaps most importantly, insurers and reinsurers should remain engaged on the topic with industry partners, consumer groups, regulators, and legislators, in order to encourage transparency and open dialogue. This helps achieve greater balance and supports mutually beneficial outcomes.
Have an idea for the next issue? Want to know more about what we do or explore a potential partnership? Or do you have other questions? Please contact us »