Morningstar DBRS released a commentary discussing how the lower representation of female leaders can have an adverse impact on insurance companies’ financial performance and public perception. This commentary analyses the gender gap at the management level in the UK insurance industry, the root causes behind this problem, and some of the most prominent policies and initiatives established in response.
Key highlights
Only 7% of CEOs in the UK insurance industry are women, suggesting an under-representation of women at the executive level.
Lack of diversity among insurance executives could hinder company performance and reputation, which could ultimately adversely affect credit ratings.
A more balanced representation of women in management positions would improve the sector’s reputation and help close the overall existing pay gap.
“Female participation in management positions in the UK insurance sector seems to have stagnated at around 35% since 2019, while most other financial sectors have managed to improve the presence of women in senior positions by four to eight percentage points during the same period,” said Marina Gimenez, Analyst, Morningstar DBRS.
“In our view, the UK insurance sector has made progress in closing the senior gender gap, but there is room for improvement. Specifically, the sector needs to focus on enhancing job satisfaction by creating a supportive work environment that enables women at intermediate and senior levels of their careers to balance work and life responsibilities.“
Morningstar DBRS Gender Diversity Report
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