Comparison of Estimates of Effects of Fair Insurance Practices Act on Women's Insurance Costs

OCE-84-8: Published: Sep 27, 1984. Publicly Released: Oct 29, 1984.

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Pursuant to a congressional request, GAO discussed the different estimates put forth by the National Organization of Women (NOW) and the Insurance Services Office (ISO) of the effect on women's insurance costs of S. 372, the proposed Fair Insurance Practices Act.

GAO found that the ISO analysis better represented the types of policies held by the majority of women in health and disability insurance and in pensions, while the NOW analysis better represented the policies of the majority of women in auto insurance. Except for the NOW analysis of auto insurance, neither estimate represented the average effect on all women, although ISO came closer for health and disability insurance and pensions. GAO also found that both analyses were misleading in the sense that no single case could typify the policies held by all women, or even of a majority of women. GAO concluded that the ultimate pattern of premium and benefit changes resulting from the bill for any given woman is impossible to estimate.

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