Race and ethnicity: the UK insurance sector’s demographic imbalance

Even before reporting on the findings of the study, the statistics for the ethnic group of respondents underscore the demographic imbalance within the UK insurance industry.

Some 71.5 percent of respondents reported their ethnic group as white, and 55 percent as white British.

In contrast, just 9.2 percent identified as Black, Black British, Caribbean, African or African-Caribbean, while 6.4 percent identified as Asian or British Asian – Indian. A further 9.1 percent reported themselves as being of mixed or multiple ethnicities.

A staggering 55 percent of people from ethnic groups other than white said they believe that their career progression has been adversely affected by their race.

Furthermore, 68 percent of women from ethnic groups other than white said they think that gender and race combined have negatively affected their career progression – as well as feeling “overlooked” or “not heard” in favour of white men.

Unlike gender, reporting on the ethnicity pay gap is currently voluntary. According to the report, only three of the 19 financial services businesses in the FTSE 100 were reporting on this in 2020.

With a lack of quantitative data to understand how discrimination feeds into insurance from a pay gap perspective, accounts of experiences provide a highly valuable insight.

Of those respondents that said they have experienced prejudice or discrimination in the workplace, 50 percent said this was on the basis of race.

In addition, 59 percent of women from ethnic backgrounds other than white said they have experienced prejudice, discrimination and microaggressions based on racial stereotypes.

This includes the use of explicitly racist language in the workplace and during post-work activities. One respondent reported having her hair compared to rope, as well as to tree bark that was a garnish in a cocktail during an after-work event.

Other examples of prejudice cited by respondents include having “difficult to pronounce” names that did not have an English origin.

One white male respondent said they had “a name that is straightforward to pronounce. I assume that, sadly, this has benefited my career progression, due [to] inbuilt cultural/racial biases”.

“I believe my race had a part to play in limiting my ascension to senior management in a previous company”

Others, including a participant from a white, non-British ethnic background, said that they believe their accent has hindered their career progression.

Traditional views around dress codes often erase traditional Black hairstyles, as well as tattoos and piercings related to cultural backgrounds, such as mehndi.

The old boys’ network

The report added that the disproportionate representation of those from minority ethnic backgrounds in the industry is exacerbated by instances of nepotism or other forms of patronage within companies.

This means that the faces in senior roles are then replicated in junior roles – who are also likely to progress quicker.

These hires have the advantage of knowing the soft skills of the industry, generally with access to better education, networking opportunities and tips for interview preparation, but not necessarily the practical experience or qualifications.

Perpetuating the current lack of diversity into the next generation of professionals will understandably discourage younger people from diverse backgrounds from entering the industry.

“I am white, and as such I have never experienced discrimination on the basis of race. In fact, I believe I have access to opportunities others would not – people were more willing to ‘take a risk’ on me even when I was not necessarily experienced in the role”

Elsewhere, a perceived lack of progression has led to attrition in some organisations as professionals look to move to other firms that are more proactive in supporting equality, diversity and inclusion.

One respondent acknowledged: “We have a high attrition rate with Black colleagues leaving within two to three years.”

At least two participants said they had moved to insurance consulting to enable their own career progression, while others said they had made successful moves to progress their careers in other organisations.

It is crucial that people are confident that their career will progress based on merit rather than affinity bias.

The report recommended that firms critically review job adverts, role descriptions, and promotions and rewards criteria in order to ensure they are equally applicable to people from all backgrounds and with different identity characteristics.

This includes challenging unconscious bias and looking to recruit from beyond the sector to harness transferable skillsets that may be currently underrepresented in the insurance talent pipeline.

While upskilling young people is one way to go, the insurance sector should also reach out to more school leavers and graduates to encourage not just talent acquisition, but also retention and progression to ensure the sector is secured in its future with diversity of skills, thought and experience.