With products ranging from basic life insurance to complex personal investment plans in Sri Lanka and beyond, the insurance industry continues to grapple with a persistent challenge: gender disparity. Despite significant progress in workplace equality across many sectors, insurance remains an industry where women are notably underrepresented, particularly in leadership positions.
This disparity is not just a social issue—it is a business imperative that requires immediate attention. As insurance companies worldwide compete for talent and market share, the lack of gender diversity threatens innovation, customer understanding, and ultimately, business performance. The problem is particularly pronounced in emerging markets, where even major health insurance companies in Sri Lanka and other developing nations struggle to achieve balanced gender representation across their organisational hierarchies.
The Current State of Gender Disparity
The numbers tell a striking story. Women comprise approximately 60% of the insurance industry's workforce at entry-level positions, yet only 19% of executive roles are held by women. This dramatic drop-off between entry-level and executive positions—often referred to as the "leaky pipeline"—represents a significant loss of talent and potential for the industry.
In underwriting and actuarial departments, where key decisions about risk assessment and pricing are made, women represent less than 25% of leadership positions. This imbalance is particularly concerning given that women control an increasing share of household financial decisions, including the selection of health insurance plans and other insurance products.
The Business Case for Gender Parity
Research consistently shows that gender-diverse companies outperform their less diverse counterparts. Insurance companies with greater gender diversity in leadership positions demonstrate:
Higher financial performance, with a 21% increase in likelihood of above-average profitability.
- Better customer insight and product innovation, particularly in markets serving women.
- Improved risk management and decision-making through diverse perspectives.
- Enhanced ability to attract and retain top talent.
- Stronger corporate governance and ethical behaviour.
These benefits are particularly relevant in an industry that relies heavily on understanding and serving diverse customer needs while managing complex risks.
Root Causes of Gender Disparity
Understanding the underlying causes of gender disparity is crucial for developing effective solutions. Several key factors contribute to the persistent gender gap in insurance:
- Unconscious Bias in Recruitment and Promotion
Despite progress in formal policies, unconscious bias continues to influence hiring and promotion decisions. Research shows that women in insurance face higher barriers to advancement and must provide more evidence of competence than their male counterparts.
- Work-Life Balance Challenges
The insurance industry's traditional work culture, often characterised by long hours and frequent travel, can disproportionately impact women who typically bear greater family responsibilities. The lack of flexible work arrangements and supportive policies has historically pushed many talented women to seek opportunities elsewhere.
- Limited Access to Networks and Mentorship
Women in insurance often report having less access to informal networks and mentorship opportunities that are crucial for career advancement. The scarcity of women in senior positions means fewer role models and sponsors for emerging female talent.
Strategic Solutions for Industry Leaders
Addressing gender disparity requires a comprehensive approach that combines short-term actions with long-term strategic initiatives. Here are key areas where leaders can make meaningful impact:
- Transform Recruitment and Promotion Practices
Insurance leaders must revolutionise their approach to talent acquisition and development. This includes implementing blind resume screening processes, establishing diverse interview panels, and setting clear diversity targets for recruitment and promotion. Companies should also review job descriptions to eliminate gender-biased language and requirements that might unnecessarily deter female applicants.
- Establish Robust Mentorship and Sponsorship Programs
Formal mentorship programs that pair promising female talent with senior leaders can help bridge the experience gap and provide crucial career guidance. Additionally, sponsorship programs where senior leaders actively advocate for women's advancement can accelerate career progression.
- Modernise Work Policies and Culture
Progressive work policies that support work-life integration are essential. This includes flexible working hours, remote work options, and parental leave policies that encourage both men and women to take active roles in family life. Companies should also address the "always-on" culture that can disproportionately impact women with caregiving responsibilities.
- Invest in Leadership Development
Targeted leadership development programs for women should focus on building both technical and soft skills necessary for senior roles. These programs should address unique challenges women face in the industry and provide practical strategies for navigation and success.
Measure and Monitor Progress
Implementing robust metrics and regular reporting on gender diversity initiatives is crucial. Leaders should track not only representation numbers but also promotion rates, pay equity, and employee satisfaction across gender lines. Regular analysis of these metrics can help identify areas requiring additional attention and resources.
The Role of Male Leaders
Male leaders play a crucial role in advancing gender parity. As the current majority in leadership positions, they have both the responsibility and opportunity to drive change. This includes:
Actively sponsoring female talent and creating opportunities for advancement Challenging unconscious bias in decision-making processes Modelling inclusive leadership behaviours Advocating for policy changes that support gender equality Speaking up against gender-based discrimination and harassment
Looking Ahead: The Future of Gender Parity in Insurance
The path to gender parity in insurance requires sustained commitment and action from industry leaders. While progress has been made, significant work remains to create truly inclusive organisations that leverage the full potential of all talent.
Organisations that successfully address gender disparity will likely see benefits beyond improved diversity metrics. They will be better positioned to understand and serve their increasingly diverse customer base, innovate in response to changing market needs, and attract top talent in a competitive marketplace.
The insurance industry stands at a critical juncture in its journey toward gender parity. While the challenges are significant, they are not insurmountable. By taking decisive action on recruitment, promotion, culture, and development, leaders can create meaningful change that benefits not only women but the entire industry.
Success requires more than just policies and programs—it demands a fundamental shift in mindset and culture. Leaders must recognise that gender parity is not just a women's issue or a social responsibility initiative, but a business imperative that directly impacts their organisation's ability to compete and succeed in an evolving market.
The time for incremental changes has passed. Insurance industry leaders must now take bold steps to accelerate progress toward gender parity, creating organisations that truly reflect the diverse communities they serve and unleash the full potential of all their talent.
