With names like Inga Beale, Tulsi Naidu and Amanda Blanc breaking through at the top of the UK insurance sector you might have thought the industry has finally got to grips with its diversity issues. However, a new report by the Financial Conduct Authority suggests nothing could be further from the truth.
Having set a target of 45% of its senior leadership to be women by 2020, and 50% by 2025, progress towards the target as of March 31, 2017, had fallen back – from 39% in 2016 to 36% in 2017.
In addition, the FCA’s mean gender pay gap is 19.28% with the median gap at 20.91%. This, it states, is a reflection of relatively fewer women in the more senior technical and managerial roles, as well as the higher number of women in administrator roles.
It’s not just in the male-female demographics where the gap appears to be widening either. The FCA has also set a target of 8% of its senior leadership team identifying as Black Asian Minority Ethnic (BAME) by 2020 and 13% by 2025 – but by March 31, 2017, the percentage had fallen from 3% in 2016 to 2% this time around.
“We are obviously disappointed that the number of people identifying as female and BAME in senior leadership roles fell slightly in the year ending March 31, 2017,” commented Christopher Woolard, chair of the FCA’s executive diversity committee. “However, we are taking positive steps to ensure that we achieve a better balance across the organisation. This includes improving our gender balance throughout the organisation which will help reduce the gender pay gap.
“We already know that recruitment to our senior team is beginning to increase the representation of women and BAME colleagues. We have set an ambitious aspiration for greater diversity in the FCA and are determined to meet it.”
The FCA has now outlined a number of targets to help push towards its goals, according to a release:
- All senior leaders have an objective around the promotion of diversity and inclusion
- Senior leaders are focusing on ensuring that diversity and inclusion is considered when allocating work
- Expecting hiring managers and agencies to produce balanced shortlists which will give the FCA the best candidates for all roles
- Training sessions demonstrating the importance of diversity and inclusion to the organisation. Those taking part will make a commitment to change by taking positive action through their management decisions
- Establishing a number of mentoring schemes which include an internal mentoring scheme for women and participation in the 30% Club mentoring scheme and Race for Opportunity Cross Organisational Mentoring Circles
The FCA will report on its progress again in 2018.
Related stories:
How Lloyd’s CEO is promoting diversity & inclusion in financial services
Two insurance firms back initiative to close Britain’s “opportunity gap”
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