Gender directive: New tricks

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When the European Union Gender Directive came into force in December 2012, outlawing the use of a motorist's sex as a factor in underwriting decisions - it was to the dismay of actuaries everywhere. What the EU deemed discrimination, they knew as one of the soundest proxies available when looking to differentiate risk, especially in the highly competitive UK motor market.

As motor insurers stripped gender from their rating engines, experts wracked their brains for a new way to price risk and balance their portfolios, while remaining compliant with the new rules. The result was the appearance of gender based marketing.