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EU Gender Directive

Royal London and the EU Gender Directive

The EU Gender Directive (Council Directive 2004/113/EC) sets out requirements for equal treatment between men and women. In particular it prohibits, in principle, the use of gender as a criterion in the calculation of insurance premiums and benefits for new contracts. However, the UK government has used an option under the directive to allow life insurers to set differential premium rates and benefits. This was enacted through The Sex Discrimination (Amendment of Legislation) Regulations 2008 which amended the Sex Discrimination Act 1975.

Differential treatment by insurers between men and women is prohibited unless:

(i) the use of sex as a factor in the assessment of risk is based on relevant and accurate actuarial and statistical data;

(ii) the data referred to in subparagraph (i) are compiled, published (whether in full or summary form) and regularly updated in accordance with guidance issued by the Treasury;

(iii) the differences in treatment are proportionate having regard to the data in subparagraph (i).

Royal London has appointed the CMI (Continuous Mortality Investigation) to publish such data on its behalf. These data can be accessed on the Actuarial Profession's website by clicking on the following link:

http://www.actuaries.org.uk/knowledge/cmi/gender

Gender may be used as a factor in the assessment of risk for the premium rates and benefits used for Royal London's individual contracts. Where this is so and where these contracts are entered into on or after 6 April 2008, the differences in premium rates and benefits are proportionate having regard to the data published by the CMI.