Lloyd’s of London, other U.K. insurers reveal gender pay differencesReprints
Lloyd’s of London has a gender pay gap of 27.7%, reflecting the difference between the average pay for men compared with the lower amount paid to women within the organization.
The gender pay gap rises to 36.7% when comparing bonuses, according to a report published by Lloyd’s on Wednesday as large and medium-size U.K. employers comply with a legislative requirement to publicly release information on pay differences.
Lloyd’s attributed the gender pay gap to a higher proportion of men than women in senior roles and a higher proportion of women who work part time, according to the report. The number of men in the highest-paying quartile within the organization is almost double, at 66.2%, than women, at 33.8%, while those figures are reversed for men and women in the lowest-paying quartile. Meanwhile, 11% of Lloyd’s employees work part time, of which 92% are women.
“The gender pay gap is different to equal pay, which is men and women being paid the same for the same work or work of equal value,” the organization said in its report. “Lloyd’s does not believe it has an equal pay issue. However, we review this on as annual basis as part of our compensation review process.”
However, the organization committed to four actions in 2018 to address its gender pay gap: mandating all external recruitment long lists to include a 50/50 gender split of potential candidates, reviewing current succession plans, developing and launching a female development program targeted at key female talent and conducting a full review of family care policies and flexible working arrangements.
“We know that access to senior roles has historically been limited by the culture of the insurance sector that was much less inclusive and welcoming than it is now,” Inga Beale, chief executive officer of Lloyd's of London, said in a statement. “While there has been good progress, particularly over the past thirty years, progress is simply not happening fast enough. We must turn this situation around, not just to benefit women, but to benefit the whole sector.”
U.K. organizations with 250 or more employees are required to publish specific data about their gender pay gap and a written statement and report their data to the government online, beginning from 2017. The requirement was enshrined in the Equality Act of 2010, with the regulations coming into effect on April 5, 2017. The deadline to publish is April 4, 2018.
The Lloyd’s report was published in line with these reporting requirements, relating to U.K. employees of Lloyd’s as of April 5, 2017.
“Reporting on our gender pay gap is an important step forward in tackling this long-standing and systemic issue,” Ms. Beale said.
Other commercial insurance-related organizations in the U.K. that have reported their gender pay gaps include:
Axa U.K. P.L.C., a London-based unit of French insurer Axa S.A., reported a mean hourly rate gender pay gap of 20.6% lower for women and a median of 20.4% lower; women’s mean bonus pay is 38.7% lower and their median bonus pay is 32.8% lower, while 63.4% of the insurer’s top quartile of employees based on pay are men.
Brit Group Services Ltd., a London-based unit of Toronto-based insurance and investment holding company Fairfax Financial Holdings Ltd., reported a mean hourly gender pay gap of 31.7% lower for women and a median gap of 31.2% lower; women’s mean bonus pay is 64.1% lower and their median bonus pay is 56.3% lower. Of the insurer’s top quartile of employees based on pay, 80% are men.
The Financial Conduct Authority, the U.K.’s independent financial services regulator, reported a mean hourly gender pay gap of 19.3% lower for women and a median gap of 20.9% lower. Women’s mean bonus pay is 19.4% lower and their median bonus is 25.2% lower. Of the FCA’s top quartile of employees based on pay, 64% are men.
Unum European Holding Co. Ltd., the Dorking, England-based unit of Chattanooga, Tennessee-based disability insurer Unum Group, reported a mean hourly gender pay gap of 27.3% lower for women and a median gap of 17.5% lower; women’s bonus pay was 66.2% lower and their median bonus was 35.2% lower; and the top quartile of Unum employees based on pay was 64.5% men.
Zurich U.K. General Services Ltd., a Fareham, England-based unit of Swiss insurer Zurich Financial Services Ltd., reported a mean hourly gender pay gap of 25.9% lower for women and a median gap of 26.3% lower; women’s mean bonus pay is 45% lower and the median bonus pay is 27.6% lower; and 72% of Zurich’s top quartile of employees based on pay are men.