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Gender equality directive rises again

The fight to stop radical gender equality laws being imposed on the insurance industry's premium-rating structures is getting serious again

The European Commission has dusted down the draft Gender Equality Directive, which was sidelined in the run-up to the enlargement of the EU and the subsequent parliamentary elections in the spring. Industry insiders had been that hoping the directive, which had been very much associated with the outgoing Greek Commissioner for Social Affairs, might die a slow death by neglect in the new regime. No such luck.

Directives such as these are a bit like vampires - they are very difficult to kill off and only drastic measures will succeed in finishing them.

This directive has its supporters among the vast army of EC officials and they have made sure that the reshaping of the EC and the reshuffling of responsibilities has not resulted in the directive being overlooked.

There have already been two attempts to force it through its next stage.

Fortunately, both have been bungled, managing to upset both the supporters and opponents of this draconian measure.

The directive is now in the hands of the new Commissioner for Social Affairs, who is widely reported to be a supporter of this measure. Post enlargement, there are 25 commissioners, each with quite a narrow brief, making it more likely that they will champion just one measure with which to make their name.

Fortunately, the insurance industry is alert to the danger that this measure has not died and has been lobbying hard at home as well as in Europe. The Association of British Insurers recently won the backing of an influential House of Lords committee in its fight against this measure, which, with increased premiums for motor and life insurance, would see women pay a high price for equality. It could also have a seriously distorting effect on an already shellshocked annuities market.

It is likely to be rejected by the Council of Ministers this month, but a determined commissioner could then try to push it through parliament and use the elected body's backing as a way of persuading Member States to drop their opposition. A bit of lobbying of UK MEPs is now in order to ensure this ill-thought-out proposal finally suffers the fate it deserves.

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