The European Commission has decided to advance the principle of gender neutrality in the supply of goods and services. Under the proposals gender could no longer be used as a factor when calculating insurance premiums.
The proposal will now be forwarded to the EU's Council of Ministers for adoption by unanimity, after consultation with the European Parliament.
The proposal is based on Article 13 of the Treaty of the European Union which allows the EU to take measures to combat discrimination based on race, sex, ethnic origin, religion or belief, disability, age or sexual orientation.
"This is a ground breaking proposal, calling for gender solidarity in European society" said Anna Diamantopoulou, commissioner for Employment and Social Affairs. "As with past breakthroughs in the field of gender equality, it is being greeted with pessimism from some parts of industry."
"Contrary to what businesses may fear, this directive would establish a public policy decision that gender discrimination in the access to and supply of goods and services is unacceptable. Therefore it secures a level playing field for businesses in the EU and consumer prices."
The commission said it accepted that the methods of the insurance industry would have to change if the proposal was adopted. To allow for this, a six-year transitional period would be introduced for the industry.
In a statement, the Commission added: "In some member States a distinction between the sexes is made in motor insurance, with men paying higher premiums (although) a number of factors other than sex play a role. It is therefore the view of the Commission that calculating risk based on the grounds of sex is discrimination."
