Commercial Law

Court of Justice of European Union Condemns Use of Gender in Assessment of Insurance Risks

On 1 March 2011, following the opinion of its Advocate General (See, this Newsletter, Volume 2010, No. 10, p. 2), the Court of Justice of the European Union (the "ECJ") declared invalid Article 5(2) of Directive 2004/113/EC of 13 December 2004 implementing the principle of equal treatment between men and women in the access to and supply of goods and services (the "Directive"). Article 5(2) of the Directive contains an exception to the general prohibition of sex discrimination laid down by the Directive. More specifically, this provision allows Member States "to permit proportionate differences in individuals' premiums and benefits where the use of sex is a determining factor in the assessment of risk based on relevant and accurate actuarial and statistical data".