The insurance industry has made “good progress” on improving board diversity and setting targets on neurodiversity, but progress on increasing the number of apprenticeships has “stalled”.
These were the conclusion of a report by the Association of British Insurer one year after setting a diversity, equity and inclusion ‘blueprint’ for the industry. However despite its more upbeat assessment just 6 per cent of board members within the industry come from black or ethnic minority groups.
The ABI’s progress report notes that the insurance industry has improved efforts to understand neurodiversity and attract neurodiverse people. Almost half (47 per cent) of insurance and long-term savings firms now collect data on this issue within their organisation, which increased from 40 per cent in 2021 and 27 per cent in 2020.
The ABI says almost a quarter (24 per cent) of its members now have a specific policy in place to support neurodiverse employees in the workplace, up from 14 per cent in 2021.
A key target of for this insurance DE ‘blueprint’ was to secure at least 50 signatories to the government’s Women in Finance Charter and Business in the Community’s Race at Work Charter, and this goal has been met at 50 and 57 signatories respectively.
The ABI says its data shows that these charters, as part of a whole suite of initiatives, are having a tangible impact on advancing DEI in the industry.
It says The Women in Finance Charter has helped to boost senior female representation — with the number of women on boards increasing steadily from 19 per cent in 2017 to 32 per cent in 2022. Representation of women within executive teams has also increased from 25 per cent in 2021 to 29 per cent in 2022.
The industry has also seen a small increase in black and ethnic minority representation at board level within firms, up from 2 per cent in 2021 to 6 per cent in 2022.
The ABI says that while there is still significant work to be done to improve ethnic diversity in financial services, this initial increase is encouraging.
However progress has stalled when it comes to apprenticeships. In 2022, the ABI pledged to double the number of apprenticeships across the sector to 2,500 by 2025. It says the industry needs “faster and more focused action” if it is to achieve this goal.
The ABI’s latest data shows the number of apprenticeships offered by members stood at 1,231 in 2022. The trade body points out that apprenticeships play a vital role in boosting socio-economic diversity. IT says efforts to hit this target will be a key priority in the year ahead.
ABI director general Hannah Gurga says: “It’s encouraging to see the progress our industry has made this year. Attracting more neurodiverse people to our industry, growing the number of members signed up to DEI charters, and advancing how we and our members collect data is something we should all be proud of.
“But we know we need to do more if we’re to succeed in building a workforce that truly reflects the diverse society we serve. 2024 must be a year of action where we accelerate progress and broaden perspectives. Some businesses are further ahead than others and to make a real difference we must move forward together.”
ABI executive sponsor for DEI, Yvonne Braun adds: “We said last year that the insurance and long-term savings industry wants to be the most diverse, equitable and inclusive sector of the UK economy. We knew this was a bold mission statement, but I’m pleased to see the progress we are making as an industry.
“We also know that we’re doing better in some areas than others. There can be no room for complacency on DEI. Collaboration is vital and we’re urging the whole sector to maintain this momentum and not get left behind on DEI.”
