Role of women in insurance

As per the latest IRDAI annual report, in 2019-20 women buyers accounted for only 31% of new Life Insurance policies sold. This number reflects just the tip of the iceberg for the economic gender gap of India, which has been falling for the last 15 years, as per the Global Gender Gap Report by World Economic Forum (WEF).

To put this in perspective, India stands at 149th place globally on WEF’s economic gender gap standing for ‘Economic Participation and Opportunity’ for women in 2020. For a nation where 49% of the population is made up of women, not having enough representation in the workforce is an opportunity lost and we need to work fast towards truly empowering women across the nation to play an active role in the economy.

The insurance industry has been actively supporting and encouraging the participation of women in its workforce. As of March 31, 2020, the Insurance industry has 6.15 lakh women agents, accounting for 27% of the individual agency force. Besides this, women are present in the insurance sector in all positions right from the junior to the executive level. They are joining this sector as financial advisors, agents and employees and are excelling in their career.

Women bring to the table a few additional traits which help them in managing their job/role well. Here, we are talking about the inherent qualities in women like empathy, good listening skills etc.

Women are empathetic and good relationship builders

There is no doubt that women tend to possess the natural ability of bonding and connectivity. This is very useful in the insurance industry, where constant discussions and persuasion skills are required. Moreover, good relationship building skills also result in a more personalised customer experience and good employee connections as well. The empathetic and intuitive traits of women help in claim processing and underwriting roles in the insurance sector. As we know, insurance is mostly about winning the trust of the stakeholders. Hence, there is a constant need of effective communicators in the industry which can be fulfilled by women.

Women are skilled at problem-solving

In our everyday lives and while running a household, we all come across problems that require solving and sometimes instantly. In insurance, one is required to find creative solutions to problems every day and carefully analyse situations and come up with fitting solutions. Women inherently have the problem-solving ability and skill that make them a good fit in the insurance industry.

Women are well suited for risk management

A common perception prevails in the financial industry that women are more risk averse than men and are hence suited for roles which require soft skills. Instead of considering women as ‘risk averse’, I think a better interpretation would be to consider it as a balanced approach to risk and risk management/mitigation.

A female workforce can result in better financial literacy amongst other women: Lack of financial awareness amongst women is a serious concern. Not only is the number of women buying financial products and services far lesser than their male counterparts, the participation of women in the family’s financial decisions is negligible. It is widely understood that the quickest way to spread literacy in the nation is to educate the girl child. The same holds true for financial literacy also. The more women enter the workforce, especially in the BFSI sector, the faster the spread of financial literacy and awareness among women (and families). This will help women have better control over their finances and take sound decisions. More female employees translate to more insurance products aimed at women. More female insurance agents lead to more engagement with female prospects and dissemination of financial literacy.

Gender diversity can be hugely beneficial to the management. As per a recent global study by McKinsey, gender diverse institutions are more likely to have better financial outcomes. Women add significantly to the performances of the company in terms of adding to the business growth, acquiring new customers as well as servicing existing customers well. Appropriate corporate policies are a step towards maintaining a healthy gender diversity and retaining it successfully. One of the biggest lessons that the pandemic has taught us, is that we have to be prepared for the unlikeliest of disruptions. In such a scenario, a gender diverse pool of talent surely means new ways of thinking and innovation.

(The writer is EVP & Chief of HR and Management Services, SBI Life Insurance)