The European framework introduced the principle of freedom to set premiums. There can, therefore, no longer be any prior approval of insurance conditions and premiums.
This freedom does not prevent a certain monitoring of rates, in particular by the supervisory body or other institutes such as the Price Observatory.
The premium is set according to the risk. However, certain criteria - known as segmentation criteria - that used to help identify risk can no longer be used.
The regulations, therefore, pursue the objective of combating discrimination on the grounds of, inter alia:
- political convictions, philosophical or religious beliefs, civil status, birth, wealth, sexual orientation, language, social origin, etc.
- race
- gender. In concrete terms, insurers can, therefore, no longer provide for premiums - or cover - differentiated between men and women in such a way that the insurer must have one and the same (unisex) rate applicable regardless of gender for life insurance, car insurance or any other insurance.
Certain distinguishing criteria (e.g. age, current state of health), although discriminatory and therefore in principle prohibited, are a source of conflict with the actual methodology of insurance. The legislator has, therefore, stipulated that these protected criteria will not be regarded as discriminatory provided that they are objectively justified by a legitimate aim and that the means of achieving that aim are appropriate and necessary.
Of course, the insurer can take other criteria into consideration as long as they comply with the regulations, in other words, they are not prohibited (for example in car insurance: the engine capacity of your vehicle, your driving experience, etc.).
In view of the need for greater transparency in the application of the segmentation criteria, the law imposes various obligations on insurance companies insofar as they target consumers in the context of civil liability car insurance, fire insurance, civil liability family insurance, insurance for legal expenses, life and health insurance, etc.
The law provides that (translation) "Any segmentation in terms of acceptance, premiums, and/or scope of the cover must be objectively justified by a legitimate objective and the means to achieve that objective must be appropriate and necessary". It must, therefore, publish on its website, for each type of insurance contract, the criteria it uses. It is also obliged to explain on its website, in a clear and comprehensible manner for the policyholder, the reason for using these criteria.