SAI Convention “ Gender Differentiation” Directive

1. SAI Convention“Gender Differentiation” Directive 18 May 2006

2. Key Points of the Directive • From 22 December 2007, unisex premium rates must be offered on insurance contracts and related financial services unless … “the use of sex is a determining factor in the assessment of risk based on relevant and accurate actuarial and statistical data” • Member States must inform the Commission of any derogations and ensure that … “accurate data relevant to … are compiled, published and regularly updated” • Differences in male/female experience arising from pregnancy/maternity related conditions must be excluded. • Member States must review their decisions after 5 years taking into account a report to be produced, within 3 years, by the European Commission.

3. Key Dates • December 2004 • Directive was approved • December 2007 • Member States must transpose the Directive by 21 December 2007* • December 2010 • Commission will review practices and prepare a report to Parliament and Council by 21 December 2010 and … “where appropriate, the Commission shall accompany its report with proposals to modify the Directive” • December 2012 • Member states must review their decision five years after the 21 December 2007 transposition date * although Directive does allow for later transposition, subject to informing the Commission

4. Implementation in Ireland • Department of Justice Equality and Law Reform responsible for implementing legislation. • Likely to be implemented through modification of existing equality legislation rather than through new legislation. • DJELR set up a Steering Group comprising:

5. Steering Group • Steering Group’s Terms of Reference: • Review current practices in Irish insurance markets; • Review data relevant to use of sex as a determining actuarial factor and evaluation of data to ensure accuracy of compilation, publication and updating; • Prepare a report on its findings and make recommendations in relation to a) use of sex as factor in insurance pricing; andb) by whom and how any supporting data should be compiled, published and regularly updated.

6. Steering Group (2) • The Steering Group has identified 5 categories of insurance for its purposes: • Life assurance • Annuities • Critical illness insurance • Income protection insurance • Motor insurance • The view of the Group is that derogations are desirable in all cases. • DJELR has emphasised that derogations are not a foregone conclusion and that derogations must be justified by relevant supporting data.

7. Steering Group (3) • SAI has provided input on data sources for first four categories: • Group’s initial view is that available data should be sufficient to support derogations for life assurance and annuities*. • For critical illness and income protection, some further analysis of data is required (including analysis of pregnancy/maternity related experience). DoH is looking at its data in advance of next meeting. • IIF has provided input on data sources for motor insurance: • Some further work is required on this front. * Particular complexities would arise if annuities were not derogated, stemming from conflicts between this Directive and an earlier occupational schemes Directive.

8. Next Steps • Steering Group has had 2 meetings to date • 2 more meetings planned • start July • end of the summer • The Group will then present its findings and recommendations in a report to the Minister • Normal legislation change process will then begin

9. SAI Convention“Gender Differentiation” Directive 18 May 2006