Women in Insurance & Financial Sectors: What can be done to elevate and equalise?

The insurance and financial sectors have historically, and reputationally, been male dominated. Current statistics highlight a lack of female representation and glaring gaps in pay and seniority, suggesting that diversity and inclusion is still an issue. This article will explore gender inequities within the insurance industry and financial sector, and question what can be done to incite change.

For 300 years, Lloyd's of London was a wholly male cohort and women were banished from the underwriting floor. It wasn’t until 1920, eight years after receiving its royal charter, that the CII elected to admit female members.

Since, both society and legislation have progressed. In recent times, there have been numerous public denouncements in the press of sexist or inappropriate behaviour within insurance and financial industries- symptomatic of a growing consciousness and intolerance of inequity, prejudice and discrimination, and a conviction that those in high-level positions who abuse their power should be held accountable. Furthermore, in 2014 Dame Inga Beale became the first woman in Lloyd's of London’s 326-year history to be appointed CEO and women are outnumbering men in entry-level insurance roles, occupying 57% of positions.

Yet, statistics reveal a significant gender seniority and pay gap. Does this suggest a failure by the industry to elevate women and achieve equity, or merely a temporary hangover from overhauling a legacy of ingrained bias and prejudices?

According to research by GQ Littler, women account for less than 7% of CEOs in the UK insurance industry, 16% of CFOs, and under 11% of chairpersons. Therefore, is the fact that women outnumber men in entry-level insurance positions an indication not of increased inclusivity, but a glass ceiling capping the seniority and responsibility of women. Or, perhaps, that the well-known skill and recruitment deficit has left room for women to enter the industry where there wasn’t before? Regardless, with the ABI blueprint estimating that, at the current rate of progress, the representation of women in senior management of financial services firms will not reach parity until 2050, progression appears inadequate.

A gender pay gulf also exists; the financial and insurance industries have the largest gender pay gap of all UK industries at almost 25%, almost twice the national average of 15% according to 2022 ONS figures. The belief that progression and opportunities are closed off to women is also reflected in the thoughts of women themselves. A PwC study found 15% of millennial women would be disinclined to work in the industry due to its image, and 80% of women felt opportunities were not equal, despite the industry outwardly discussing diversity and inclusion.

Aside from the loss of a just and equitable society, studies reveal gender disparity could cost businesses financially. The Global McKinsey Institute report estimated that increasing gender equality could add up to $12 trillion to global GDP, whilst the Swiss Re Institute estimates $2.1 trillion in global insurance premiums could be achieved by 2029 by securing gender parity within the global labour market. On a lower level, McKinsey found that firms in the top quartile for gender diversity were 15% more likely to achieve financial returns above the national industry average compared with than in the bottom quartile. What’s more, diverse workforces benefit from an enriched insight into consumer behaviour, aiding a firm’s reach across markets, and can expect a boost in talent and productivity.

Yet the vital question is: what is holding women back, and what can be done? Whilst statistics can be scrutinised, challenges and limitations faced by women, along with the prejudice and unconscious bias that cause them, are more nuanced, subjective and insidious, making them harder to quantify and examine. Sam White, CEO of Freedom Services Group, attributes the lack of equal opportunities in the insurance industry to a “skewer of male dominance” compelled by an “unconscious bias that sits behind” decision-making. Although sex is a protected characteristic under the 2010 Equality Act, it does not guarantee that bias won’t operate unconsciously, or within outwardly benign decision-making, meaning inscrutably transparent glass ceilings for women may linger.

To eliminate regressive attitudes from the culture of firms, the industry must educate and rehabilitate both mindsets and policies. Education must highlight both the injustice of inequity among genders, and the material and social benefits of parity. Widely available courses and training on Diversity, Equality and Inclusion can help firms to be proactive in dismantling bias and prejudice against women and other minority groups. For instance, the regulatory requirement for insurance employees to undertake 15- hour of CPD annually is an opportunity to implement mandatory DEI courses which dissect and discuss issues like unconscious bias. E-Learning platforms such as The Development Zone include a wide range of DEI courses within their catalogue designed for industry beginners to Senior management professionals.

A change in firm policy and culture must begin with a change in mindset and educating employees on how to ensure everyone has equal opportunities and feels supported in the workplace is paramount. Whilst there is much work to be done to elevate women in the insurance and financial sectors, learning from past mistakes and recognising and adapting inappropriate behaviours will allow the industry to reform, and reap the benefits.

If you are already a Development Zone user, you can find a range of courses related to topics we have touched on in this article, including:

• Improving Diversity and Inclusion in the Workplace
• Inclusive Design
• Diversity and Inclusion in Customer Services

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