^aBusiness Administration, Risk Management and Insurance, University of Giessen, Giessen, Germany. E-mail: oliver.t.riedel@wirtschaft.uni-giessen.de

Abstract

European legislation requires insurance companies to calculate unisex tariffs after December 21, 2007. Health insurance companies can compensate the loss of gender-based primary premium differentiation by using extended premium refund systems (experience rating) to differentiate the premiums between the risks ex post. In this paper, it is shown that about 2/3 of the current ratio between females' and males' expected financial burden can be reached through secondary premium differentiation and the extended risk transfer (back) to the insured can be accepted.