Official Position of the Commissioner: Insurance Companies Prohibited from Discriminating Against Insureds Based on Place of Residence

The Capital Market Authority published an official position prohibiting insurance companies from discriminating against insureds in car insurance based on place of residence. The position bans refusal to insure, strict underwriting, or pricing based on geographic area without statistical proof.

The Capital Market Authority published today (Tuesday) an official position prohibiting insurance companies from discriminating against insureds in car insurance based on place of residence. The position states that a residential address alone will not constitute a parameter in underwriting, prohibits 'strict underwriting' regarding residence, and bans pricing based on geographic area unless the insurance company proves through statistical studies that the risk level is affected by that area. The position aims to correct distortions that led to discrimination against insurance applicants in peripheral communities. The Insurance Agents Association, led by agents in the Arab community, fought for years against insurance companies' refusal to insure clients citing high risk, and the authority acceded to its request.

Official Position of the Commissioner: Insurance Companies Prohibited from Discriminating Against Insureds Based on Place of Residence