Empowering Women in Finance: How the Insurance Industry Can Bridge the Gap

Women's Financial Progress and the Insurance Industry

Women have made significant strides in taking control of their finances, contributing more to their households and feeling more confident about personal finance than previous generations. However, they still face obstacles in planning for their financial future and legacy. A recent report by LIMRA and Life Happens highlights a significant disparity in life insurance purchasing between women and men and perceptions surrounding these products.

Historical Barriers and Current Challenges

Historically, women were excluded from financial affairs. They did not have the right to open a bank account in their name until the 1960s, and banks refused women credit simply for being unmarried before the Equal Opportunity Credit Act of 1974. Today, women remain underserved by the life insurance industry, with ownership rates declining over the past five years. Anxiety about being treated differently and unease about sharing personal information with agents or companies are common concerns among women.

Opportunities for the Insurance Industry

Despite these challenges, there is significant market opportunity in engaging women where they are. Increasing consumer education and accommodating gender-diverse life cycle needs and associated risks can make a difference. Women represent nearly 60 percent of insurance professionals, but only one in 10 hold leadership positions. Pushing ahead with diversity and inclusion goals can lay the groundwork for more innovation and equality.

To empower women in finance, the insurance industry must address historical and current barriers, increase consumer education, and promote diversity and inclusion. By doing so, it can help women take charge of their financial futures and ensure they are adequately protected.