Beginning December 21, 2012 in the European Union, gender can no longer be used as a pricing factor for premiums of new individual life insurance contracts. In a world where insurers tend to increase the level of segmentation so that premium prices are sharply tailored to specific risks and/or health of the insured, unisex tariffs for life insurance would actually be an uncommon move in the other direction.
This white paper discusses some basic effects of combining two known heterogeneous groups in one single tariff.