June 3, 2024
There’s an ongoing discussion on gender identity within society and a related discussion within our industry, specifically as it relates to auto insurance rating. Despite significant strides towards recognition and acceptance of diverse gender identities, gaps persist within insurance practices. Recently, our DEI Committee explored how gender markers are used in the P&C insurance space.
Considering Statistics
One in 300 individuals aged 15 and older in Canada identifies as transgender or non-binary, according to Statistics Canada. But despite this reality, many insurance forms and policies fail to adequately accommodate these identities. The option to designate one’s gender as “X” on official MTO documents such as drivers’ licenses marks a significant step forward in acknowledging and affirming diverse gender experiences, but this progress isn’t always reflected within an auto insurance policy.
Our DEI Committee’s analysis revealed that while some insurers have embraced the Gender X designation within their quoting portals, others lag behind, with the option not available during a quote. We found instances where insurance documentation misrepresented a client’s gender. For example, if the client presented themselves as Gender X at the point of quotation, the broker quoted the individual as Female in the insurance system due to the limitation of options, and the client received their documents which noted them, incorrectly, as female.
Observations from Ontario Brokerages
- 30% of insurance companies offer Gender X as an option on their auto quoting portal while the rest require brokers to choose Female.
- One insurer used gender pronouns on the client facing auto policy document. This means that if the consumer told the broker they were Gender X, they would have received policy documents indicating they were Female.
Recommendations for Inclusivity
In pursuit of inclusive policies and practices, we believe in collaborative efforts with industry stakeholders to ensure consistency in gender markers across consumer profiles, particularly in cases of gender transition. Market evidence indicates that reliving the gender transformation narrative can be very stressful for individuals when trying to explain their driving history during the insurance shopping process.
- We encourage all insurers to have Gender X as an option in their auto quoting portal. Even if there isn’t enough historical data to justify a delta in the auto rate for this class, historical data can’t be measured in the future unless it’s collected now.
- Client facing policy documents should reflect gender pronouns and markers as presented to the broker at the point of sale.
These steps, while seemingly small, have profound implications for fostering inclusivity for all individuals in Ontario. The journey towards gender inclusivity in insurance is one of awareness, advocacy and action. As we raise awareness and elevate voices, we move closer to a future where insurance truly serves all individuals.