Why aren't more women leading the insurance industry?

March is Women's History Month, which is a great time to recognize the strides and contributions that women continually make in your agency, the insurance industry as a whole and beyond.

And while the majority of agencies and organizations are fortunate to see many wonderful examples of this each day and have plenty of women to celebrate and recognize—that doesn’t mean that gender diversity within your team shouldn't remain an ongoing priority. 

For example, research shows that women are significantly underrepresented in the upper levels of insurance companies—and, as a part of the industry, you can be part of the solution.

Women in financial services by the numbers:

According to the “Women in the Workplace” survey and research completed by McKinsey & Company and LeanIn.org, women account for over half of the entry-level workforce in financial services, including insurance, however, that representation is not seen in positions of leadership. In fact, their research showed that: 

• Women account for only 19% of positions in the C-suite—which even lower than the 22% average for US women across all industries combined.
• Women in general are 24% less likely to attain their first promotion than their male peers—and women of color are 34% less likely.

The case for more women in your insurance agency:

Not only is improving the state of gender diversity in the insurance industry just the right thing to do—but the research by McKinsey shows that there are positive business implications as well, including:

• Having more female leaders can help your agency gain a more well-rounded view of your customers, particularly women—which can be especially important in personal lines as more than half of women control their household finances, savings and investing. 
• Companies that rank in the top 25% for gender diversity on executive teams were 21% more likely to outperform on profitability and 27% more likely to demonstrate superior value creation.
• Companies that rank in the top 25% for ethnic/cultural diversity on executive teams were 33% more likely to have industry-leading profitability.
• If you aren't focusing on gender diversity, you could be missing out on valuable talent! (This is even more worrisome when you consider that PropertyCasualty360 reports that 50% of the insurance industry workforce is projected to enter retirement by 2028!)

Your support could make all of the difference.

While the nuances of this problem are complex, there are things you and your agency can all do to help solve it.

For example, better supporting the women in entry-level positions in your organization could be a major key to their future success within your agency and the industry. For example, the McKinsey research found that: 

• Lack of support and sponsorship are major barriers to advancement for entry-level women.
• Women who receive advice from managers and senior leaders on career advancement are more likely to be promoted.
• Earlier-tenure women receive less encouragement and support from managers and senior leaders in advancing their careers than do their male peers.

You know that women are vital to your agency's success—and they deserve your best support and efforts. Together, your agency can make uplifting the women in your industry and prioritizing female talent more than a month-long initiative, but rather a way of doing business—and growing it.

To all of the women who make a difference in their agencies, communities, families and more each day, thank you. Your work and dedication matters.