New guidance for insurers on publishing gender-related data

The move is a consequence of the UK's implementation of the EU Gender Directive, which requires all member states to apply the principle of equal treatment between men and women in the access to and the supply of goods and services, including insurance.
In the UK, this obligation will be met by the Sex Discrimination Act 1975 (Amendment) Regulations 2008, expected to come into force on 6th April 2008. 

Under the regulations, insurers can still offer different premiums and benefits to men and women, but only if the difference is based on relevant and accurate actuarial or statistical data compiled, published and regularly updated in accordance with Treasury guidance and the difference in treatment is proportionate.

The regulations will also ban differences in premiums and benefits resulting from costs related to pregnancy and maternity, but the Treasury has deferred implementing this until 21st December 2008. 

The requirement to publish applies to annuities, life and critical illness policies, private medical insurance, motor insurance and all other products where gender is taken into account in the calculation of premiums and benefits.

Policies where gender does not affect premiums and benefits are not subject to the guidance, even if gender is a factor in the assessment of risk. Nor does it apply to group insurance provided to employees by their employers.

Detailed minimum requirements are set out according to policy type. In general, however, the information must be in plain English and in a form readily understood by someone who is not an insurance expert. Its source and accuracy must be vouched for by an authorised officer of the firm providing it and it must be updated at least every 2-4 years (depending on the type of policy).

Insurers can choose either to publish data individually, or on a joint basis (provided that, in doing so, they are not price-fixing or otherwise breaching competition law). An insurer that does not publish its own data or take part in a collective publication scheme can rely on data published by other insurers in order to use gender as a factor in calculating premiums and benefits.

Contact: Robert Mecrate-Butcher ([email protected] / 020 7667 0230)