By Henrietta Billings - 4th October 2004
National governments have struck a preliminary deal watering down controversial EU gender equality laws.
Under the political fix insurance companies will no longer be forced to abandon sex as a factor when calculating policy premiums.
Insurers will be now allowed to continue using sex for insurance pricing if it can be shown with statistical, actuarial evidence that gender is a decisive factor in assessing risk.
The compromise will mean that insurers, if authorised by a national government, can use sex to determine life and pension insurance premiums.
On the plus side, under the deal women will continue to pay less for car insurance - as females have statistically less accidents than men.
The Dutch EU presidency compromise agreed in Luxembourg has been welcomed by the insurance industry.
"We have repeatedly warned that a ban on the use of gender, although laudable at first sight, could result in higher premiums for all consumers," said Daniel Schanté, director general of the European insurance and reinsurance federation.
"The compromise clearly shows that the industry's arguments have been retained by a number of governments."
Original European Commission proposals would have forced insurance companies to abandon gender altogether as a factor when calculating premiums - affecting private pensions, car and life insurance.
But the plans came under fierce opposition from the insurance industry which warned of across the board price hikes if the proposals become law.
And several national capitals, including Britain and Slovakia held reservations making a deal, which requires unanimity, tricky.
Germany abstained due to “constitutional implications” but the Dutch EU presidency stressed in a statement that Berlin was hoping to be able to change its position to full support.
With full backing from all member states, the EU presidency hopes the new laws will be waived through as an "A" point at the next employment and social affairs council in December.
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