If an insurance company wishes to discriminate rates based on gender, it must?

The requirement for an insurance company to justify its rate discrimination based on gender using actuarial statistics is grounded in principles of fairness and accuracy in underwriting. Actuarial statistics provide a data-driven foundation to assess risk and determine premiums, ensuring that the rates charged are reflective of the actual risk presented by different gender profiles. Insurers must be able to demonstrate that any differences in rates for men and women are based on legitimate differences in risk as validated by comprehensive and relevant statistical data.

This approach helps ensure that insurance practices are justified and equitable. Without such justification, there could be potential for arbitrary discrimination, which insurance laws seek to prevent. Therefore, only having statistics to support rate decisions not only adheres to regulatory standards but also helps build trust and accountability within the insurance market.