92003E1503

WRITTEN QUESTION E-1503/03

by Kathleen Van Brempt (PSE) to the Commission

(5 May 2003)

Subject: Insurance according to astrological star sign

L'Equité, a French insurance company belonging to the Generali group, has launched an unusual trial project. People whose star sign is Leo, Cancer or Aquarius are eligible for a rebate on car insurance premiums, while those whose sign is Gemini, Libra or Virgo have to pay a supplement. According to the insurer, the latter are responsible for more accidents.

Is the Commission aware of this initiative by l'Equité, and what is its view of the matter?

Is it permissible for insurance companies to divide up their customers by star sign?

If not, what action will the Commission take?

Answer given by Mr Bolkestein on behalf of the Commission

(17 June 2003)

According to the information received by the Commission, the insurance company indicated by the Honourable Member has effectively launched a motor insurance product whose features were linked to the zodiacal sign of the policyholder. Apparently the tariffs were calculated in a traditional way, the zodiac element being used mainly for advertising purposes. As suggested in the information the initiative has not had much success (only 300 of these insurance contracts have been signed up to now) and the insurer is considering the possibility to withdraw the product in a short time.

The Commission believes that in an efficient Insurance Market the role of the actuarial techniques in the assessment of risks should in no way be replaced by or based on astrology criteria. However, it should be noted that the Community legislative framework for financial services in general and insurance in particular is based on the principle of freedom of tariffs. Insurance undertakings should freely assess their risks and fix their premiums in a competitive market, in accordance with Community law.