Diversity, Equity and Inclusion – The Insurance Sector’s Pathway for Positive DEI Change
Most organisations in the UK understand their responsibility to foster diversity, show equity and be inclusive. Commercial and corporate insurance businesses are no different. In an increasingly diverse society, it is vital to establish successful policies that promote diversity, equity and inclusion (DEI) throughout the P&C insurance sector.
The Importance of DEI
On a human level it is clear that incorporating DEI into every business is the right thing to do. The Association of British Insurers have taken the stance that no one should be disadvantaged due to characteristics such as their gender, age, marital status, sexual orientation, race, a disability, their health or their societal background [i]
ABI states succinctly in its 2022 Diversity, Equity and Inclusion Blueprint that “we want the 320,000 people who work in insurance and long-term savings across all parts of the UK to reflect and represent the communities we serve.” [ii]
It is vital that as the insurance industry seeks to respond to the changing needs of the population, that the people working for them are representative of that population.
Aside from the moral, ethical and legal reasons for championing inclusion, it makes good business sense too. There is now good evidence that businesses that have stronger DEI practice are more profitable than those that do not. (Unsurprisingly so – as a diverse work force is far better able to respond to the wants and needs of a diverse society.) [iii]
Is the insurance sector good at DEI?
The insurance sector has been making some strides in terms of DEI over recent years, with efforts making some difference, and seeing – for example – the percentage of female board members going from 29% to 32% in the space of a year. [iv]
However, there is still a long way to go, and many people feel that progress is too slow and not consistent across all areas. Although there are now a diverse range of people represented within the industry, at a senior level the leading demographic remains white men of privileged backgrounds – one set of research puts this group at 42% in financial services senior roles. [v]
A blueprint for change
ABI is striving for change, and has created a detailed and ambitious blueprint, establishing short-, medium- and longer-term goals for DEI in the sector. Anyone working in insurance would do well to read the document thoroughly. There is far too much information to do it justice in one blog post, but we’ve suggested some steps towards change, based on strategies set in the blueprint.
Ensure a welcoming environment for all job candidates
Any individual should feel welcome to apply for jobs, knowing they will be interviewed fairly. Recruitment campaigns needs to be inclusive and showcase the representation there already is within the business, as well as the wide range of opportunities there are once a candidate begins to work within the company. Good recruitment and interview practice needs to be carefully formulated to ensure inclusivity and equity for people of all backgrounds. This may mean details such as making sure the interview room is accessible, or planning the day and time of interviews so they don’t clash with cultural or religious worship or festivals.
It needs to be also clear to people that there are a range of roles within the business – and it’s important that these are not described in ways which only attract certain demographics.[vi]
As specialist insurance recruitment agents, Aston Charles are well placed to work alongside your company ensuring that your recruitment is fully inclusive and equitable.
Ensure every candidate can reach their full potential
It’s not enough to aim for strong diversity within entry level jobs. It is really important that insurance companies are equitable in allowing every employee to reach their full potential. This will include things such as having a zero-tolerance policy on any sort of discrimination and ensuring that everyone has the right (and knows how) to share any issues with management. It will also require that additional training is delivered to a wide cohort, including to those who work flexibly or part time. The company must actively seek to avoid any sort of discrimination as they push talented individuals through to senior positions.[vii]
Make sure that there is a clear track for people to go from entry level to senior levels within underwriting, claims, brokering, management – and every other area of business.
Retain decent employees
Make sure that it is possible to retain good employees when life circumstances change. We know that lots of people, especially women, leave the workforce when they find juggling parenthood and work impossible, although this could be easily mitigated by flexible working practices such as part time work. It is also the case that up to 23 % of women experiencing difficult symptoms of menopause leave their workplaces as they find it too hard to continue.[viii]
Many people leave when experiencing health issues that impact their ability to work full time. Businesses should work hard to provide policies that allow flexible working and other types of support so that employees who need to adjust to different life circumstances can continue to progress in their career. [ix]
Widen entry-level options
Offer more apprenticeships (and not just for teenagers) to provide access for people who have been disadvantaged by their educational background. Ensure they still have the opportunity to reach their full potential and that your business doesn’t miss out on excellent talent due to expecting a certain level of academic attainment (often connected to privilege) prior to joining the company. [x]
Monitor, review and collaborate
Continue to monitor and review how your business is doing at DEI and report this progress so it can form part of the bigger picture about how the industry is doing in general. Respond to ABI and other surveys about inclusion and diversity. Encourage staff to respond and make sure they are aware they can skip any questions they do not want to answer. Encourage feedback about the way that data is collected - if people feel uncomfortable with some questionnaires or surveys, work to find out why so that data collection can be improved accordingly. Work collaboratively with other insurance businesses to share ideas and strategies to encourage DEI. Measure your business against others, based on the key metrics from the ABI dataset and other datasets from organisations striving for diversity. [xi]
A more equitable future
We hope that with multiple P&C insurance companies working towards the ABI targets, that the next set of diversity data from the ABI will look even more promising. Diversity, equity and inclusion is vital for the future of our society, and for the future of insurance businesses as they seek to serve and represent their communities. [i]
This list of protected characteristics is not exhaustive. In must also be noted that one individual may have experienced discrimination on the basis of more than one of these characteristics.
[ii] ABI. 2022. Diversity, Equity and Inclusion Blueprint. [ONLINE] Available at: https://www.abi.org.uk/globalassets/files/publications/public/diversity/abi-dei-blueprint.pdf. [Accessed 1 June 2023]. Page 2.
[iii] See pages 3-4 of the blueprint.
[iv] ABI. 2022. ABI to transform sector with DEI Blueprint | ABI. [ONLINE] Available at: https://www.abi.org.uk/news/news-articles/2022/11/abi-to-transform-sector-with-dei-blueprint/. [Accessed 01 June 2023].
[v]ABI. 2022. Diversity, Equity and Inclusion Blueprint. [ONLINE] Available at: https://www.abi.org.uk/globalassets/files/publications/public/diversity/abi-dei-blueprint.pdf. [Accessed 1 June 2023]. Page 4.
[vi] See pages 11-13 and 17-18 of the blueprint.
[vii] See pages 20-22 and 25-26 of the blueprint.
[viii] ABI. 2022. Diversity, Equity and Inclusion Blueprint. [ONLINE] Available at: https://www.abi.org.uk/globalassets/files/publications/public/diversity/abi-dei-blueprint.pdf. [Accessed 1 June 2023]. Page 4.
[ix] See pages 23-24 of the blueprint.
[x] See pages 14-16 of the blueprint.
[xi] See pages 28-34 of the blueprint.