A woman and a man walking down a flight of stairs in the AA Insurance corporate office

Mind the gap

We believe in doing the right thing for our environment, our communities and our people. We’ve chosen to report on the pay gap at AA Insurance to help create fair outcomes for all employees.

Gender pay equity is about ensuring people performing the same role are paid the same, regardless of gender, and that women and men performing different work of equal or comparable value are paid equitably. Measuring and understanding our pay gap is an important step in taking action and achieving gender pay equity.

What is a pay gap?

A pay gap is the difference between rates of pay for different groups of people. The gender pay gap is a way to understand the differences in pay for men and women. We use the same method as Statistics NZ to measure our pay gap:

  • The median hourly rate is the midpoint of all employees’ hourly pay, discarding the highest and lowest rates of pay. Half of employees’ earnings will therefore be above the midpoint and half will be below.

  • The percentage represents the pay gap. If the percentage is zero, there is no difference between the pay received by men and women.

Within an organisation there are several types of pay gaps that can be measured.


The difference in pay between all men and all women across the whole organisation.


The difference in pay between men and women at the same organisational level.


The difference in pay between men and women doing similar work.

What is AA Insurance's gender pay gap?

In October 2022, AA Insurance’s organisational-wide gender pay gap was 8.03%. This means that the median pay for men was 8.03% higher than the median pay for women.

This gap can partly be explained by the fact that we have a higher proportion of women in lower paying roles, such as roles in our customer service teams. There are 485 employees in positions that have a midpoint of less than $70,000, of which 71% are female. Men are in positions that have a midpoint over $90,000 approximately 40% of the time, compared to women at 26% of the time.

What is the by-level gender pay gap?

This measure looks at the difference in pay between men and women at the same level within our organisation. This analysis has been done across three levels.

*Includes executive team

What is the like-for-like pay gap?

This measure considers if men and women are getting paid the same for doing the same job, regardless of gender. Using this measure, we can only take into account roles where there are two or more male and female employees doing the same role. Analysis of these roles yielded three different results:

  • For 19% of roles: a gender pay gap of less than 1%

  • For 31% of roles: males paid more

  • For 50% of roles: females paid more

Roles with more than a 1% gender pay gap were investigated further to understand why a gap exists. We looked at all employees in the role and considered each individual’s skills, experience, performance and tenure. For all roles, there is either a difference in skills, experience, performance or tenure with AA Insurance which goes some way to explain the like-for-like gender pay gap.

What else have we analysed

  • The percentage (proportionally) of annual performance ratings between men and women. In 2022 there was minimal difference (2% maximum) between the ratings and gender.

  • The average salary increase received by employees by rating and gender. From the 2022 annual remuneration review there was less than 0.20% difference between performance rating and average salary increase % received.

  • The average bonus % (individual component) received by employees by rating and gender. From the 2022 annual remuneration review there was 0.60% difference maximum between the performance rating and average individual component % received.

Taken from the most recent remuneration review, these three items give us confidence that our leaders recognise performance appropriately, regardless of gender.

Our next steps

We are always looking for ways in which we can create a fairer workplace for all genders, ethnicities and backgrounds. Here are a few things we’ll be focusing on over the next 12 months:

  • Continuing to measure and publish our gender pay gap annually.

  • Reviewing availability of diversity, equity and inclusivity metrics to begin to report on other pay gaps, including ethnicity and more gender options.

  • Continuing to ensure that our recruitment practices encourage and support women and other underrepresented groups into leadership roles.

  • Continuing to offer flexible and hybrid ways of working to support all of our people so they can tailor their work to suit their needs and the needs of their whānau.

  • Ensuring all genders have equal access to full parental leave and return to work benefits.

  • Integrating support and commitment of diversity, equity and inclusivity activity into everyday decision making, communication and leadership.

  • Establishing employee networks to help create safe and supportive spaces so that all our people can bring their true selves to work.