Discrimination in Access to Banking and Insurance: Evidence from Three Correspondence Testing

This study measures different types of discrimination on three markets that have rarely been studied in France, despite the fact that access to these markets can determine the professional and social integration of individuals, in particular young people. These markets are automobile insurance, health insurance, and consumer credit. Within these markets, we assess age discrimination, sex discrimination, ethnic discrimination, and discrimination related to place of residence, using correspondence testing. We used six profiles of fictitious individuals who submitted similar requests for a quotation from credit providers, insurance providers, and health insurance providers. First of all, in March 2016, we tested 38 non-life and composite insurance companies by sending them an online request for a quotation for automobile insurance. Then, between April and May 2016, we tested 52 companies by sending them an online request for a quotation for health insurance. Finally, in June 2016, we tested 20 financial institutions by sending six requests for a quotation for consumer credit in order to buy a second-hand car. These three testing campaigns highlight the existence of age discrimination, sex discrimination, ethnic discrimination, and discrimination related to place of residence, both in the access to services and in the pricing applied by providers.