Insurance industry’s sensitivity to women in focus on IWD 2024

Cynthia Ezekwe

The annual International Women’s Day campaign is a reminder of the need for greater gender equality in the workplace, and while the insurance industry has made some strides towards equality, there is still much to be done. This year’s campaign theme, “Inspiring Inclusion”, highlights the importance of celebrating the achievements of women, as well as creating an environment where all voices are heard and respected.

A new report by the International Finance Corporation (IFC) highlights the huge potential for the insurance industry if it can effectively target women as customers. The IFC estimates that the industry could earn as much as $1.7 trillion by 2030, with half of that amount coming from emerging economies.

Another report by the International Labour Organisation (ILO) found that the women’s market represents a significant commercial opportunity for insurance companies, including those in emerging markets. The report, titled “Driving Better Business Results with Women’s Insurance: A Guide to Serving Women Customers”, highlights the need for insurers to develop products and services tailored to women’s needs. This is supported by a growing body of evidence showing that women’s insurance products can generate higher premiums and profits.

“Despite persistent gender gaps, women are wielding greater decision-making and spending powers, and are more likely to be profitable, lower-risk clients for insurance companies. To become insurers of choice and tap into this valuable market, insurers must invest in solutions that reflect women’s unique needs as clients, business owners, investors, and employees. However, these investments need not be expensive or complicated,” the report stated.

According to AXA Mansard, a leading Nigerian insurer, women are often sceptical of sales agents, preferring instead to develop long-term relationships with trusted financial advisors. However, the insurer’s gender sensitivity training revealed that women agents did not necessarily prefer customers of the same gender. This finding highlights the importance of understanding and addressing the unique needs of women when selling insurance products.

The AXA Mansard report also found that women agents had 20 percent fewer women customers than male agents, and that both male and female agents displayed unconscious bias when selling to women. The report noted that both groups tended to assume that men were the sole decision-makers in a household, and that they were less likely to sell policies to women as a result.

AXA Mansard stated that through its gender sensitivity training, it was able to educate their agents on the women’s opportunity, unconscious bias, and relationship building, which enabled its staff to not only understand the valuable opportunities offered by Nigerian women but also to transform their approach from sales agents into trusted advisers,’’ the insurance company highlighted.

It also pointed out that the  training yielded positive business results by responding to the needs of the targeted market and now includes gender sensitivity training as part of its onboarding programme for new agents and advisers, adding that by  the end of 2019, the company had achieved gender parity in its customer count, a key target, which the company set in 2017.

In the wake of the COVID-19 pandemic, the International Finance Corporation (IFC) and the International Labour Organisation (ILO) are urging insurers to seize the opportunity to build back better and make a positive difference in the lives of women around the world. The organisations are calling for insurers to create and implement women’s insurance programmes that build resilience and help women and their families recover from the economic impact of the pandemic.

Reports have shown that while the insurance industry has been slow to achieve gender parity, recent years have seen some encouraging progress. One example of this progress has been the increase in the hiring and promotion of women into leadership positions. Although the current rate of change is far from ideal, those familiar with the sector, agreed that it is nonetheless an important step in the right direction.

Furthermore, the industry has also made strides in creating more inclusive workplace policies, such as flexible work hours and increased family leave. These policies are helping to create a more welcoming environment for women and help them to balance their work and personal lives. Overall, these are encouraging signs that the insurance industry is moving in the right direction when it comes to gender equality. 

However, the gender imbalance present in the sector points to the fact that there is still much more work to be done to ensure that women have equal opportunities and representation at all levels of the industry. One of the identified issues that still needs to be addressed is the pay gap between men and women in the insurance industry. Despite some progress in recent years,studies found that women are still paid significantly less than their male counterparts, on average.

According to a report by REG Technologies, a variety of external factors contribute to the unequal gender pay divide in the insurance industry. The report identified several reasons for this divide, including the lack of women in senior positions and their tendency to undervalue their worth in salary negotiations. This, it explained, is due to internalised assumptions that they are less deserving of higher pay than their male counterparts, and a need to prove themselves more than men do in order to receive validation.

The insurtech firm highlighted the need for companies to commit to fair and equal pay for all employees, regardless of gender, and called for regular pay audits to identify and address any discrepancies. The company emphasised the importance of insurance companies providing appropriate support for female employees taking maternity leave, and ensuring that career progression is still attainable upon their return.

The report also urged companies to invest in initiatives that support women in the insurance sector, such as leadership development programmes that include mentoring, coaching, and training. These initiatives , it explained,can help to increase the number of women in leadership positions, and create a more diverse and inclusive workforce.

“Inclusivity needs to be embedded into the organisational culture to overcome adversity facing women regarding unconscious bias and discrimination at work. The main focus being challenging discriminatory treatment of women.

“Companies should implement policies around diversity and inclusion to embed into their culture and activities. These policies could include specific targets for increasing the representation of women at all levels of the organisation, and initiatives that support the recruitment, development, and retention of female employees,’’ REG Technologies noted.

Despite the slow progress on gender equality in the insurance sector, there is reason for optimism. Experts believe that with the right policies and initiatives in place, progress can be made towards a more equal and inclusive future. They stated that these policies and initiatives should focus on supporting women, as they are the group that has been most impacted by inequality in the industry.

In a speech in support of the In4Women Community of Practice, Máxima Zorreguieta,  the United Nations’ special advocate for inclusive finance for development, stressed the importance of equal access to insurance for women in order to manage risks and support livelihoods and small businesses. She stated that while women represent a significant opportunity for growth in the insurance sector, business models must be adapted and trust must be built to reach this untapped market.

“Now is the time to invest in innovative product and delivery models that give women and female-headed businesses the insurance tools they need to succeed. Given the important role of technology in overcoming barriers to insurance access for women, it is critical that these solutions be accompanied by efforts to bolster digital literacy and ensure financial consumer protection. I encourage these programs to be backed by targets to monitor and accelerate progress,’’ she added.