Description
To assess these goals students will use microeconomic principles to analyze, assess and evaluate the following question: should auto insurance companies be allowed to charge different premiums based on gender?The student will: (1) identify, collect, and organize qualitative and/or quantitative information and data on the issue; (2) employee microeconomic principles to analyze, assess and evaluate the information and/or data associated with the issue; (3)provide a 2-3pagewritten report on the issue.
Explanation & Answer
Attached.
Running head: AUTO INSURANCE COMPANIES PREMIUMS AND GENDER
Auto Insurance Companies Premiums and Gender
Student’s Name
Institutional Affiliation
1
AUTO INSURANCE COMPANIES PREMIUMS AND GENDER
2
Auto Insurance Companies Premiums and Gender
Insurance companies should be allowed to charge different premiums based on gender.
Premium charges based on gender influence competition and better functioning of the market.
There is a significant difference between men and women when it comes to risking accidents,
morbidity risk, and mortality risk. The rate of risking between the genders then make it
significant for the insurance companies like the motor insurance, medical cover insurance, life
insurance, pension insurance, and education insurance companies have different rates for
insurance based on gender. Gender is majorly used as a factor in pricing. Men are charged highly
in conjunction with risk-taking ability. Men risk more when it comes to driv...