As we strive for a more diverse, equitable, and inclusive insurance sector, addressing existing inequities is crucial. A significant and persistent issue is the underrepresentation of women in leadership roles. Although women make up a substantial portion of the insurance workforce, they occupy a disproportionately low number of leadership positions.

The Latest Statistics on Women in Insurance

• Women make up 66% of entry-level positions in the insurance industry (Asnoa).
• Women make up 60% of the total insurance workforce (Women in Insurance).
• Less than 7% of CEOs in the insurance sector are women (GQ Littler).
• Only 16% of chief financial officers in the insurance sector are women (Insurance Times).
• Less than 11% of chairpersons in the insurance industry are women (insuranceage).
• On average, women only make 77 cents for every dollar earned by men (pihr).

The Current State of Gender Diversity in Insurance Leadership

According to research by GQ|Littler, women constitute less than 7% of CEOs in the UK insurance industry, holding only 29 out of 431 CEO positions. This trend of low female representation extends to other senior roles as well, with women making up just 16% of Chief Financial Officers (CFOs), occupying 63 out of 390 CFO positions. Additionally, less than 11% of chairpersons are women, with only 43 out of 407 chairperson roles held by females.

Caroline Baker, Partner at GQ Littler, believes the data indicate progress in the insurance sector, although there is still significant room for improvement.

Caroline says, “The insurance sector is making positive steps when it comes to gender diversity at the top level. Insurance has long been seen as a male-dominated but there is still much to do.”

The Business Case for Gender Diversity in Leadership

Gender diversity in leadership offers numerous advantages to companies. Diverse teams benefit from improved decision-making and problem-solving by leveraging a variety of perspectives and experiences. Additionally, gender-diverse leadership team are also better positioned to understand and meet customer need, resulting in higher customer satisfaction and loyalty.

Research consistently shows that gender diversity in leadership is linked to improved financial performance, as diverse teams are better equipped to make strategic decisions and identify new market opportunities. This capability is particularly vital in the insurance industry, where understanding and managing risk is essential.

Overcoming Barriers to Gender Diversity in Insurance Leadership

Despite the clear benefits of gender diversity, women in insurance still face numerous barriers to reaching leadership positions. Common obstacles include unconscious bias, limited access to professional networks, and lack of flexible work policies.

To overcome these barriers, companies must commit to creating a more inclusive corporate culture. This involves setting diversity goals, holding leaders accountable for progress, and providing training to reduce biases.

Developing and promoting female talent is essential for increasing gender diversity at leadership. One effective strategy is implementing mentorship and sponsorship programs. However, a McKinsey & Company report found that less than half of financial services companies have sponsorship programs, and only 58% have formal mentorship programs.

Building a Pipeline for Female Leaders in Insurance

Inclusive company policies and practices also play a significant role in developing female leaders. Companies should create an environment that supports women at all stages of their careers, from entry-level positions to executive roles. This includes providing flexible work arrangements, offering leadership training, and setting clear diversity goals.

The future of gender diversity in insurance leadership looks promising. Trends indicate that more companies are recognising the importance of gender diversity and taking steps to improve it. Technological advancements, such as data analytics and AI, can support diversity efforts by identifying biases and tracking progress.

Insurance companies that prioritise gender diversity will likely lead the industry in innovation and financial performance. By fostering an inclusive environment and promoting female leaders, these companies can achieve better outcomes and set a standard for others to follow.