Narrowing the gap between the industry’s majority female workforce and their representation at the senior level requires a redesigned approach to mentorship, networking, and other long-held organizational structures, new research shows.
Data has long shown women make up more than half of the P&C insurance industry, yet their representation at the vice president level (25%) and 18% at the senior vice president level is miniscule by comparison.
Four primary factors hold back women’s advancement in insurance — limited representation, internalized misogyny, networking gaps, and stifled confidence — according to research findings by EY and ISC Group (ISC).
Limited leadership advancement opportunities for women can lead to disillusionment, the report states. This risk comes at a time when the industry is facing a long-tail talent shortage.
“[The question] becomes, what can we do to solve that? How can we support what we’re actively hearing from this cohort?” says Cassandra Chowdhury, senior manager of insurance technology consulting at EY. “It’s implementing these new resources for your staff so that they are supported by their workplace.”
The Women in Insurance Study gathers responses from more than 1,000 women, including additional in-depth interviews with a smaller cohort.
How mentorship can be better structured
Limited representation at the higher ranks is among the hurdles facing women in insurance.
Upward progression is prevented by colleagues’ tendency to bond with those to whom they relate. In fact, “71% of sponsors have same-gendered protegé,” the report finds.
And when 72% of senior vice presidents in the P&C industry are men, women are less likely to secure a mentor (one who provides professional advice for mentees), or a sponsor (one who provides career advancement opportunities), the report finds.
It’s a catch-22 dilemma: The lack of opportunity leads to declining representation, which in turn leads to declining opportunity.
Solutions do exist to promote the advancement of women through mentorship or sponsorship opportunities, the report says. But they require the whole industry’s participation — men included.
Chowdhury shares EY’s learnings in creating a women’s mentorship program at the firm nearly six years ago. At the program’s infancy, women mentored other women, she explains.
“What ended up happening — and what we see even outside of formal mentorship programs — is because there are less senior women available as mentors, you end up having a one-to-many relationship,” she says. “[There was about] one mentor for six mentees. And so, you even start to question the quality of mentorship that can be given at that level.”
But when EY opened the program to male mentors and allies, they saw more opportunity for women mentees, and better-quality outcomes as mentors’ individual load was lessened.
“That really worked because it strengthened the empathy and the bond between men and women at the senior level, because now these male counterparts, who are actively coming as allies, are hearing and seeing firsthand from younger women mentees of the struggles and the barriers that they’re facing,” she says. “They’re able to realize now that those barriers exist, because they may not be in the same barriers that are heard from male mentees.”
Since its grassroots, Chowdhury says the program has doubled in size, showing both the need for and success of the program.
Why networking may need to change
Ask anyone and they will tell you the insurance industry is a social one.
Yet insurance networking events might favour men more than women, as there are “inherent differences in how each gender connects,” EY’s report reads.
That’s because women tend to form professional networks the same way as personal ones — through a close-knit group. And they tend to see casual connections as more transactional, EY finds.
“Women typically struggle with ‘using’ others for personal gain, finding networking events with a wide array of unfamiliar people better suited to a man’s style of networking.”
Women surveyed scored themselves 3.97 out of 5 when agreeing they had advocates in their organizations who could vouch for them. Newcomers in particular scored lower, at 3.6 out of 5. However, many lamented the challenges in taking advantage of that support.
Networking opportunities better geared toward women would allow for deeper relationship-building, says Chowdhury. “Perhaps, at a networking event, it’s not just drinks and coffee and wandering around and chatting, which could feel really daunting. It’s actually creating spaces for people to have conversations as part of the event in smaller groups,” she says.
“It’s letting people connect on a smaller scale, even if it’s at a large event, [and] dividing folks up — letting them have that opportunity in that space to feel safe, to share their thoughts, to be vulnerable, to connect.”
Opportunities to build on that connection can be facilitated “by offering, at the time of the event, a really easy way to connect offline, whether that be through contact information, social media profiles, or other ways.”
Building back confidence
Internalized prejudices are another main roadblock for women’s advancement. They are perpetrated by women, and may include prejudices they have towards others or themselves.
Stifled confidence also ranks among the top barriers to women’s personal advancement.
Although women participants in EY’s survey rated their confidence in discussing and showcasing their talents at 3.65 out of 5, their comfort as the only woman in the room scored lower at 3.28.
“Women actually felt very capable of the work they do,” Chowdhury says of the findings. “They had a strong aptitude for growth and for further development, and they felt like they were ready for the next step of their career in multiple facets.
“But what actually causes that imposter syndrome…was second-guessing because they won’t be given the opportunities that should naturally come after feeling and being ready in your skill sets.”
Particularly, respondents felt their manager was aware of their career ambitions and supported their development — with a score of 3.72 out of 5, yet felt their full potential was not being recognized or utilized, at 3.02.
“This imbalance appears to have contributed to an eroded confidence in their work,” the report reads. “Respondents showed signs of imposter syndrome, with women doubting their own skills and successes and hesitating when action or advocacy is required.”
The solution is simple. “Simply having someone believe in them made all the difference,” verbatim interviews with respondents show.
“Empowerment is about building spaces in which women can feel safe showcasing their ideas, trusting they will be recognized for them. When considering action plans, according to those interviewed, organizations could learn from others who have benefitted from successful programs that create spaces where leaders are safe to stumble, without fear of unjust consequences.”
Feature image by iStock.com/DNY59
