A 2012 study undertaken by Saint Joseph's University Academy of Risk Management and Insurance shows that gender diversity is lacking across all leadership levels within the insurance industry.
“Executive leaders are aware of the status of gender diversity among insurance organizations, they are genuinely surprised and disappointed in the results, and are interested in providing a solution,” said Mike Angelina, Academy executive director and administrator of the study that analyzed SNL data of major insurance organizations, in a June 13 presentation of the results at the Insurance Industry Charitable Foundation (IICF) Global Women in Insurance Conference.
Women hold only 6 percent of top executive positions (CEO, CFO, COO, etc.), 12.5 percent of board seats, and 8 percent of inside business, legal or actuarial officer roles, such as chief actuary or division president, among the 100 publicly-traded or mutual insurers/reinsurers.
The study found that 85 percent of companies have no females in top executive positions; 28 percent of companies have zero women on its board of directors; and 65 percent have no female inside business or functional officers on its board of directors.
Market segmentation is a key differentiator with respect to gender diversity in leadership roles: a quarter of the top executive roles held by females are in the brokerage business; 21 percent of women inside officers and 18 percent of female directors are employed in personal lines insurance.
Furthermore, companies that communicate with customers on a daily basis tend to exhibit more gender diversity, with more women working as brokers (7 percent) and in life (15 percent), and personal lines insurance (17 percent) than in any other insurance-based organization.
Many younger women are just entering the insurance workforce, with more than 15 percent having two to three years of tenure in the industry, and almost 10 percent having only one year of experience. According to Angelina, progress that is occurring today may not come to fruition for many years.
“Entry-level women hired in 2011 will not become CEOs tomorrow,” Angelina says. “Any change will take time to become reflected in the poll results.”
The challenge, says Angelina, is now to help women move into and upwards through their insurance careers through increased identification and recruitment, training and leadership development initiatives. The Academy plans to update the study with data from 2013 proxy statements and SEC filings.
All but two percent of male and female respondents to a live poll held during the IICF said that gender inequality still exists in the insurance industry. About half said that the lack of C-Suite recognition and sponsorship is the top issue that must be confronted to elevate this statistic, and 26 percent said that women need to promote themselves more efficiently in order for change to occur.
More than 30 percent replied that their company does nothing to source more female talent, but mentoring seems to be just as empowering: 20 percent of respondents can rely on CEO endorsement and mentoring or sponsorship programs, and about 90 percent have participated in and benefitted from a professional mentoring relationship.
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