UK insurers have all but eliminated the gender pay gap for non-executive directors, putting the sector among the strongest performers globally and marking a decisive break from the industry’s historical norms. The progress stands in stark contrast to UK banking, where the gap has widened sharply and is now the principal reason the country continues to lag international peers on board-level pay equity.
The latest EY Global Financial Services Boardroom Monitor shows the gender pay gap for UK financial services non-executive directors narrowed from 40% in 2020 to 29% by the end of 2024 - the fastest improvement across major markets in Europe and North America. While the headline figure suggests material progress, it conceals a growing divergence between sectors, with insurance driving improvement and banking moving in the opposite direction.
Within UK insurance, the board-level gender pay gap collapsed from 28% in 2020 to just 3% in 2024. That result places insurers not only ahead of UK banks but also ahead of most international peers, including insurers in the US, Canada and continental Europe, where board-level gaps have generally narrowed more gradually and remain in the low-to-mid teens.
By contrast, the gender pay gap among UK bank non-executive directors widened from 34% to 45% over the same period. That deterioration leaves UK banking materially behind banks in France and Germany - where gaps have trended down since the late 2010s - and worse than the US, where banking pay gaps remain elevated but broadly stable. As a result, banking has become the dominant drag on the UK’s overall financial services performance.
At 29%, the UK’s cross-sector gender pay gap equates to an average annual difference of US$102,000 between male and female non-executive directors. That remains significantly higher than in the US, Canada, Germany or France, and second only to Switzerland among major markets. A decade ago, the UK sat firmly among the worst performers internationally; the recent narrowing reflects genuine progress, but one driven overwhelmingly by insurers rather than the broader sector.
Martina Keane, EY UK & Ireland financial services leader, said the figures highlight both progress and structural imbalance. “It is encouraging to see UK financial services firms move faster than their transatlantic peers to narrow the board-level gender pay gap, particularly when many comparable markets are moving in the opposite direction,” she said. “But this progress should not obscure the scale of the challenge that remains.”
For insurers, the Monitor points to a nuanced picture: rapid gains on pay equity alongside growing pressure on overall remuneration.
Female representation among non-executive directors across UK financial services rose from 41% to 48% between 2020 and 2024, broadly matching or exceeding levels seen across most of Europe and well ahead of the US. In insurance, increased representation has coincided with a sharp narrowing of pay differentials - a combination rarely achieved so quickly in regulated industries.
However, EY’s analysis shows that average non-executive pay across UK financial services fell by 4% over the five-year period, making the UK the only major European or North American market where board remuneration declined. By contrast, non-executive pay rose by double digits in the US, Canada, Italy and Switzerland, reflecting stronger competition for experienced directors.
Keane warned that this dynamic risks creating a new imbalance. “As more women join finance boards in the UK, overall pay for non-executive directors is falling - even amid inflation - unlike the upward compensation trend seen in competitor markets. Financial services chairs should look to review representation and remuneration policies together to ensure they remain equitable and globally competitive.”
The Monitor also highlights a critical pressure point for insurers: technology expertise.
Between 2020 and 2024, the number of UK financial services non-executive directors with technology experience rose by 66%, with women accounting for 47% of those appointments. For insurance boards navigating cyber risk, digital distribution, AI governance and legacy-system transformation, this represents a marked shift from the early 2010s, when tech skills were scarce and overwhelmingly male.
Despite this demand, average pay for tech-specialist non-executive directors in the UK fell by 15% over the period, and women with technology expertise still earn 33% less than male peers. While that gap has narrowed since 2020 - one of the strongest improvements in Europe - it remains wider than in comparable roles in France and Germany.
For insurers, the message is clear: the sector has emerged as a leader on gender pay equity at board level, but sustaining that advantage will require careful management of pay, skills scarcity and global competition - particularly as banking continues to exert downward pressure on the UK’s overall financial services standing.
