According to a recent McKinsey study, around 57% of people working in insurance at entry-level positions are women. So far so good, right? The representation of women in the insurance industry is even more apparent when compared to other sectors, where the entry-level average of women workers amounts to 48%. So why worry about female brokers with this information in mind?
In spite of a good start, only around 28% of women move on to VP-level positions. Even though men and women started out the same, there is something keeping women from getting promotions and making it big. What is the cause of this discrepancy? Moreover, what are the consequences for the insurance industry if women steer clear of decision-making positions? In the text below, we will let you in on what female empowerment could mean for insurance.
The State of Women’s Representation in Insurance Today
Understanding clients and customers is becoming one of the key factors in contemporary insurance marketing efforts. With the rising trend of bundled insurance, insurance agencies handle information on your health, work habits, interests, driving skills, history of addiction, even the various specificities of your pet poodle. Knowing your clients is proven to drive sales, but the post-Covid-19 rebound plan seems to focus more on automation and triggering email campaigns than having an actual conversation with a broker. Strategies such as the 10 best triggered email campaigns seem to be making money more than anything else, so why does female representation matter?
While automation and apps are of the utmost importance for the insurance industry and work to the benefit of both insurers and policyholders, human ingenuity is still vital to calling the shots. In the case of many types of insurance, notably health insurance, women are the primary decision-makers in planning many types of coverage for the entire family. The family unit’s healthcare coverage, even a wide arrange of liability coverages fall onto working women with children. Women choose insurance brokers, a preferred insurance policy, doctors, treatment plans. Understanding this perspective can make a world of difference for insurers. This is only one example, but a decision to direct your automated marketing plans towards addressing the right people gives companies the competitive edge.
The Financial Success of Diverse Teams
According to the same Women in the Workplace study, as many as 50% of the men and 33% of the women interviewed claimed that having 1 in 10 women in senior leadership positions counts as “pretty good” representation. According to the available data, the parameter of high financial returns begs to doffer. Diversity is one of the integral characteristics of a successful business. In fact, for public companies in the top quartile for racial and ethnic diversity in decision-making, management positions are 35% more likely to bring profits higher than the industry mean.
The number goes to 15% when it comes to gender diversity. It is, therefore, apparent that the representation of women is one of the key ingredients to building a bright future for insurance agencies. The best women brokers in leadership positions, perhaps due to a need to prove themselves in a male-dominated environment, often surpass their male counterparts.
In spite of the obvious advantages of having people of diverse backgrounds in higher management and executive positions, women of color, in particular, are even less likely to climb the corporate ladder in an insurance agency. African-American, Asian, and Hispanic women hold only 12% of entry-level insurance positions. As a result, a measly 3% reaches the much-desired C-suite rung on the corporate ladder.
The Future of Insurance?
Not only is including women in management and leadership positions important for female representation, but it is also proven to bring higher profits, and contribute invaluable new insights to the industry as a whole. Racial, ethnic, and gender diversity helps businesses attract people who truly merit, and bring their unique perspectives to the C-suite level. Changes coming from the top down are proven to affect policyholders in a positive way. More women in insurance bring both insurers and clients a step closer to bringing the insurance information gap and enjoying a higher-quality service.
