Lloyd's 2019 Gender Pay Gap
Lloyd’s is committed to celebrating and seeking diversity in all its forms, guided by a gender balanced senior leadership that is as diverse as our global reach. We will continue to highlight and take decisive action on closing the gender pay gap within the Lloyd’s Corporation, and act as a leader across the global insurance sector.
Lloyd’s gender pay gap of 23.6% represents the difference between the average pay for a man in the Corporation of Lloyd’s, compared with the average pay of a woman. This is an increase of 3.7% percentage points compared to 2018, which showed a gap of 19.9%. This is primarily due to changes to our executive team last year.
There has been better progress on our bonus pay gap figures. The mean bonus pay gap, which at 28.3%, represents a decrease of 1.8% compared to 2018. The median bonus gap has also decreased - by 9.6% to 33.2%. Our 2018 figures were partially impacted by the way we paid bonuses that year, however both mean and median bonus figures over the past three years show the gap closing.
Gender pay gap drivers
There are several factors driving the gender pay gap at the Corporation including:
- A higher proportion of men than women in senior roles
- A higher proportion of women who work part-time
Overall, the Corporation has a significantly higher proportion of men in our senior management population who form a large proportion of the upper quartile (64.9%) and conversely a larger proportion of women in more junior positions shown in the lower quartile (61.9%).
Bonuses are paid on a pro-rata basis and are not adjusted to the full-time equivalent in the statutory calculation. Within its part-time population, the Corporation has a higher proportion of women (86.5%) working part-time, which also affects the bonus gap.
Update on actions
The Lloyd’s Corporation has an important role to play in closing the gender pay gap across the insurance sector by leading on actions and initiatives that serve as best practice for all Lloyd’s market participants.
Dive In Festival
2019 was our fifth year sponsoring the Dive In festival, with events held in more than 65 cities across 32 countries under the theme Inclusion Impact, raising awareness for greater diversity within our sector. It included gender-focused events for the first time in Nigeria and Bahrain. To recognise growth of the festival, Lloyd’s spearheaded two special events to recognise the impact of the festival across insurance. The first, a CEO dinner hosted by The Bank of England and the second an award evening to celebrate the individuals who have made an Inclusion impact over the past five years, In 2020, we look forward to our sixth Dive In festival under the theme Local Voice, Global Impact.
Inclusive Behaviours Pledge
Launched in July 2018, the Inclusive Behaviours in Insurance Pledge was established to set the standard for inclusion in insurance, with more than 120 CEOs in the UK signing the pledge, demonstrating their commitment to a culture that is accepting of difference and inclusive for all employees. Building on the work of the Inclusive Behaviours pledge, in 2019, we ran mandatory workshops for senior leaders to enhance their knowledge and expertise in understanding the changing legal, cultural and social norms impacting the workplace and the role of leaders and businesses in continuing to build an inclusive environment.
Employee Resource Groups and Networks
We continue to support our gender-inclusive employee resource group (Inspire), providing greater access to senior leaders and a platform for colleagues to share ideas and network at all levels across the Corporation. Across the sector we continue to sponsor and support cross-market initiatives, such as the Gender Inclusion Network for Insurance and the Balance programme, bringing together leaders to share best practice on gender balance and to help them become advocates for gender parity. In 2019, we were proud to sponsor We Are The Citys Rising Stars in Insurance for the fifth year in a row, recognising the emerging female talent within our sector. In continuing to provide development opportunities for the third year we sponsored POWER: Opening Doors for Women by connecting senior leaders and high-potential talent to interact and exchange ideas with thought leaders, industry experts and their peers. Fostering greater connections at cross-industry level, we continued our corporate membership of Women in Banking & Finance, providing greater development opportunities for our colleagues. In 2020, we look forward to working with external partners to continue to create a more inclusive workplace and drive gender parity for all.
Women in Finance Charter
As part of the commitment to the Women in Finance Charter, the Corporation set a gender diversity target of at least 40% female and 40% male for its senior management population (in the highest 25% of employees). As of 31 December 2019, the representation of women had increased year on year by 0.6% to 39.1% in the UK (and by 9.3% globally to 47.1%).
About the gender pay gap
The gender pay gap is the difference between the gross hourly earnings for all males and the gross hourly earnings for all females.
— The mean gender pay gap figure represents the difference between the average pay of all Lloyd’s Corporation male employees, and female employees
— The median gender pay gap figure represents the pay difference between the middle point of Lloyd’s total number of male and female employees
The gender pay gap is different to equal pay which refers to males and females being paid the same salary for the same work, or for work of equal value.
As part of our annual compensation review, the pay of male and female employees is assessed, and based on this we are confident that Lloyd’s does not have an equal pay issue.
In line with the reporting requirements, this report relates to UK employees of the Corporation as of 5 April 2019.
Lloyd’s market firms that have more than 250 employees will individually be reporting their pay gap as required by the UK Government.
I confirm that the data contained within this report is accurate and meets the requirements of the Gender Pay Gap reporting regulations.
John Neal, CEO, Lloyd’s