Why the insurance industry must do more to retain female talent

Sam White, chief executive at MGA Stella Insurance, believes that the famous gender related quote from actress Meryl Streep – “women speak men, but men don’t speak women” – is an analogy that illustrates the challenges women face when working in the male dominated insurance sector.

She therefore thinks that women looking to build a career in a typically male dominated industry have to master the “language” connected to this environment and understand the social and professional norms that have been built “by men and for men”.

This is something White herself got to grips with after launching car insurance and telematics brand Stella Insurance in Australia in 2020.

She told Insurance Times that she quickly learned to “speak the language of men” upon entering a field where she found herself in the gender minority. Despite her fluency, White found that she still faced business challenges due to her female focused stance.

For example, although Stella Insurance attracted a certain level of interest and engagement because it was a “female founded company” – where the high proportion of women on the team “sparked interest” – White reported that this initial curiosity would quickly peter out.

She explained: “I would often be able to make deals with people, but being able to lock them into long-term contracts or be present in the room during those big conversations about strategic partnerships became much harder.

“It became clear that there were networks of men who supported each other and it was potentially harder for me to break through because I wasn’t part of their tribe.”

The challenges White encountered when setting up Stella Insurance remain prevalent today.

For example, Florence Dennis, lead client advisor at broker Partners& and vice-president of the Chartered Insurance Institute’s Leicester brand, shared her personal experience exclusively with Insurance Times in January 2024.

She recalled a conversation where she explained her career aspirations and five-year career plan with a particular “connection”, who subsequently asked: “Don’t you think you’re aiming a bit high?”

Dennis said: “There is no guarantee that is what they meant. However, it is all too often [that women face these comments].”

Leadership diversity

According to data released by specialist employment law firm GQ Littler on 18 December 2023, women make up less than 7% of chief executives in the UK insurance industry, holding only 29 out of 431 available positions.

The research further found that women account for just 16% of the industry’s chief financial officers, with only 63 out of 390 in such positions, while less than 11% of chairpersons are women – 43 out of 407 of these roles.

These statistics indicate that female talent is not being promoted into c-suite roles as frequently as their male counterparts.

An anonymous c-suite underwriting executive told Insurance Times that career progression ”still revolves around the social side of the industry” in the majority of instances – a method that has favoured male employees in the past thanks to old boy networks.

White agreed with this sentiment – she confirmed that often, it is who a candidate knows rather than their skill set that lands them top jobs.

Bamishe Alao, international transaction liability assistant underwriter at CFC Underwriting, added that this type of culture is “discouraging for young women entering insurance who want to pursue leadership roles”.

Market commentators agree that despite the reported challenges around female career progression, having women in c-suite roles alongside male colleagues is beneficial for encouraging diversity of thought in leadership decision-making – Alao, for example, said this avoids creating an “echo chamber” dominated by individuals with similar backgrounds.

Dennis commented: “There needs to be an equal split because everyone has different views. It’s important on the diversity, equity and inclusion front to have equal representation from all walks or backgrounds.”

Simon Waller, executive chair at JBA Risk Management, agreed with Dennis’ view. He noted: “At JBA Risk Management, we find that women often bring a different perspective or approach – they can apply a different type of emotional intelligence and view situations differently”.

Young talent

For Alao – who received a highly commended accolade for Biba’s 2024 Young Broker of the Year title during her tenure at Willis Towers Watson –supporting and developing female talent and providing opportunities for them to advance into leadership roles are crucial steps towards building a more inclusive industry.

She said: “It’s important for insurance companies to have robust programmes to help women develop.” This could include, for example, the use of mentors who can empower female insurance staff ”to take control of their futures”.

For instance, on 20 November 2024, CFC Underwriting’s transaction liability team launched an international mentorship programme, aimed at helping women develop both hard and soft skills.

The programme focuses on developing skills aligned with mentees’ goals, such as broker development, empowerment, conflict management, technical underwriting, cross-selling, negotiating terms and reviewing share purchase agreements.

Alao concluded: “Including young women in conversations and bringing a range of different viewpoints and experiences can help shift the insurance industry towards a more modern culture.”