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 (robert.mecrate-butcher@pinsentmasons.com
/ 020 7667 0230)
Want more content like this? This story was written by the insurance and reinsurance legal experts at Pinsent Masons, the law firm behind OUT-LAW.COM. We've recently launched a new section, legal info for Insurance and Reinsurance, giving free legal information to anyone working in that sector.
