The insurance sector has slashed its board-level gender pay gap to 3% in 2024, down from the 28% recorded in 2020, according to findings from EY’s latest Global Financial Services Boardroom Monitor.

Across the financial services sector, the UK was the only major European and North American market to reduce its board-level gender pay gap. However, although it was down by 11 percentage points to 29% at the end of 2024, this was higher than the gap in other markets such as the US (4%), Canada (9%), Germany (21%) and France (22%).

Martina Keane, UK and Ireland financial services leader at EY, said: “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. But this progress should not obscure the scale of the challenge that remains.”

She said the “near parity” achieved in insurance showed what was possible.

The report found that UK financial services boards have increased female representation from 41% in 2020 to 48% in 2024. However, it said persistently lower pay for female directors had driven down overall non-executive remuneration.

Partly because of this, the UK was the only major financial services market across North America and Europe to see its average level of non-executive pay fall between 2020 and 2024 – declining by 4%. In contrast, non-executive pay rose significantly in the US (up 13%), Italy (up 12%), Canada (up 11%) and Switzerland (up 16%).

Keane said: “UK financial services firms have made strides to improve female representation in the boardroom, but an unintended consequence has emerged. 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.”