by Carmen Powell
In today’s rapidly evolving business landscape, companies are increasingly recognising the benefits of gender balance in driving innovation, resilience, and financial success.
Studies demonstrate that businesses with a gender balanced workforce outperform their less diverse counterparts. According to BlackRock’s Lifting Financial Performance by Investing in Women (Nov 2023): Increasing the representation of women in a company by just one percentage point has been linked to a 3.5 basis point increase in Return on Assets (RoA) in the following financial year.
Furthermore, improving the representation of women at senior levels by five percentage points leads to a 3.6% reduction in turnover rates the following year, with a further 4.6% reduction two years later. These figures highlight that companies investing in gender balance not only achieve stronger returns but also cultivate a stable and engaged workforce.
Despite the recent reflections and ongoing discussions around DEI, companies continue to prioritise and invest in strategies that foster gender balance, recognising its critical role in driving innovation, performance, and inclusive workplace cultures. The recent FTSE Women Leaders Review by KPMG and Lloyds Bank launched in February this year highlights the real progress is being made. 43.4% of women now hold board roles in FTSE 350 companies and 30.5 % of leadership roles in the UK’s 50 largest firms. Research also shows that leadership teams with gender diversity make better business decisions 87% of the time, driving greater innovation and resilience. All proving a balanced leadership team fosters stronger decision-making processes and leads to better business outcomes.
The data remains clear: companies that invest in gender balance enjoy improved performance, stronger talent retention, and enhanced innovation.
The insurance and reinsurance sectors greatly benefits from the skills and perspectives women bring to the table. Women often excel in key competencies that are essential for business success, including strong strategic and risk management. These skills enable them to assess long-term impacts and mitigate potential challenges effectively. Their client-centric approach and emotional intelligence foster trust and enhance client retention, leading to deeper, more sustainable relationships. Furthermore, women often excel in collaboration and communication, which promotes inclusive decision-making and strengthens overall team dynamics.
Given these valuable skills, and with these sectors facing talent gaps, attracting women, including career returners, into insurance is crucial. By doing so, we can fill these gaps with fresh perspectives and valuable life and work experience, ultimately strengthening leadership and driving innovation.
The need to attract, retain, and promote female talent is more pressing than ever. As businesses face increased market challenges and economic pressures, investing in gender balance is not just about fairness; it is a strategic necessity. Companies that actively prioritise gender balance and offer inclusive pathways for women, including returners to the workforce, are better positioned to tap into a wealth of untapped talent and experience.
To retain these women requires a workplace culture where women can thrive. This not only helps companies reduce turnover and secure the best talent, but it also enhances their reputation and competitiveness, making them more attractive to top-tier employees, investors, and clients.
Achieving gender balance in the re/insurance sector remains a crucial goal, requiring sustained effort and collective action, this is where ISC Group plays a vital role.
At ISC Group, we are dedicated to fostering gender balance and bridging the seniority gap within the insurance and reinsurance industries. With a network of over 10,000 members, 100+ corporate partners, and two decades of experience, we help businesses recognise that gender balance isn’t just an aspiration, it’s a business imperative. After all, what benefits women also strengthens the industry.
Through our leadership programmes, cross-sector initiatives, and strategic partnerships, we support companies in turning their commitments into meaningful action. By accelerating efforts to retain, advance, and elevate women, we are moving the dial for all women working in the sector, whilst enabling businesses to reap the rewards.
Despite significant progress and growing recognition that gender balance is vital for business success, a persistent talent gap still exists in the leadership pipeline. With women leading just 10% of FTSE 100 companies, there is still much work to be done. Maintaining a strong pipeline of women leaders is essential, not only for their future impact but for the long-term success of businesses. Companies that embed gender-balanced strategies today will drive stronger performance and build resilience for the challenges ahead.
