Women in Insurance: Driving Growth but Underrepresented in Leadership

Women's Contribution to the Insurance Industry

The insurance industry is experiencing significant growth, with women playing a crucial role in this expansion. According to the Bureau of Labor Statistics (BLS), women make up 59.4 percent of the insurance workforce. They hold 80.1 percent of claims and policy processing clerk positions, 54.9 percent in sales roles, and 56.9 percent of underwriting roles. Despite their substantial contributions, women only occupy about 22 percent of C-suite positions in the industry.

Gender Disparities in Leadership

Recent studies highlight the gender disparity in insurance leadership. A Marsh study in 2022 found that 92.5 percent of the largest insurance companies were led by men. Similarly, a McKinsey study showed that while white women make up 45 percent of entry-level roles, fewer than one in five direct reports to the CEO are women. These disparities are also evident across different races and ethnicities.

The Business Case for Gender Diversity

Research indicates that women in leadership can positively impact organizations. McKinsey's studies show that leadership diversity is associated with holistic growth ambitions, greater social impact, and more satisfied workforces. Additionally, female CEOs in U.S. property-casualty insurance companies are linked to lower insurer insolvency propensity, higher z-score, and lower standard deviation of return on assets.

To address these disparities, organizations should focus on identifying, developing, and promoting diverse talent at all levels. This approach not only fosters a more inclusive workplace but also positions companies to better serve the diverse needs of their customers. As millennials and Gen Zers increasingly dominate the consumer market, reflecting market demographics in senior leadership becomes a strategic imperative.