The insurance industry has long faced challenges related to gender representation in leadership roles. The 2023 update from Agent for the Future highlights the persistent leadership gap for women in insurance and offers actionable strategies for industry leaders to create better pathways to leadership for women. This article summarizes the findings from Liberty Mutual’s 2024 Agent-Customer Connection Study and provides insights on how to address these disparities.
Underrepresentation in Leadership
According to the study, women are significantly underrepresented in leadership positions within agencies:
- Customer Service Representatives (CSRs): Women make up 97% of CSRs, with only 3% being men.
- Producers/Agents: Women represent 34%, while men dominate this role at 66%.
- Principal/Owner: Women hold only 26% of these positions, compared to 74% held by men.
These data clearly show a biased representation where women are predominantly in support roles rather than leadership positions.
Key Traits Valued by Consumers and Strengths of Women Principals
The study also explored the key traits that insurance consumers value in an agent compared to the personal strengths that women in principal roles identify in themselves. There is a notable alignment between the two, suggesting that women possess the qualities that consumers seek in their agents.
- Traits Valued by Consumers:
- Experience with insurance
- Quick response to requests
- Clarity in explaining insurance options
- Proactivity in understanding needs
- Excellent listening skills
- Strengths of Women Principals:
- Experience with insurance
- Ability to explain insurance options clearly
- Quick response to client requests
- Personal connection with clients
- Proactivity in understanding client needs
These findings indicate that women in leadership roles possess precisely the qualities that make agents successful, reinforcing the importance of promoting more women to leadership roles.
Consumer Confidence and Preferences
The study revealed key differences in how male and female consumers approach insurance:
- Women reported less confidence in their insurance knowledge compared to men.
- Women showed a greater preference for seeking expert advice when making insurance decisions.
- Women also valued comprehensive insurance coverage more and expressed greater concerns about potential risks.
These perceptions highlight the critical role knowledgeable and supportive agents play, particularly for female consumers.
The Importance of Retaining Women in the Workforce
Retaining women in the workforce is crucial for the industry’s future. The 2023 Workhuman survey revealed that nearly half of the women surveyed felt undervalued at work. Additionally, Deloitte’s 2023 report on women at work found that more women left their jobs in 2022 than in the previous two years combined, citing lack of flexibility as one of the main reasons.
Actionable Strategies for Leaders
To close the leadership gap and retain talented women, insurance leaders can take the following actions:
- Recognize and Reward Contributions: Ensure that women’s contributions are fairly recognized and rewarded.
- Offer Flexibility: Provide flexible working hours and remote work options to accommodate diverse needs.
- Mentorship and Sponsorship Programs: Establish mentorship programs to support women’s career advancement.
- Leadership Training: Invest in leadership development programs specifically designed for women.
- Promote Diversity: Actively promote diversity and inclusion within the organization.
By implementing these strategies, insurance agencies can create a more inclusive environment that not only supports women but also leverages their strengths to better serve consumers.
The Liberty Mutual and Safeco Insurance 2024 Agent-Customer Connection Study provides valuable insights into the leadership gap for women in insurance. By recognizing the strengths that women bring and addressing the barriers they face, the industry can move towards a more balanced and effective leadership structure. Now is the time for insurance leaders to take concrete steps to support and elevate women in their organizations. For more information, consult the reports by Agent for the Future.
