Insurance industry’s diversity commitment questioned
The insurance industry is shifting its focus from dedicated diversity and inclusion initiatives to broader conversations about culture, talent, and skills. This raises questions about whether this change represents genuine progress or simply makes an old problem less visible. For an industry built around assessing risk, insurance has spent the past decade confronting one within its own walls—whether it is attracting, retaining, and progressing people from a broad enough range of different backgrounds.
Over the past decade, diversity, equality, and inclusion (DEI) have become increasingly important in the industry. However, the language is evolving, with DEI being folded into broader discussions. This shift reflects a growing recognition that DEI should be integrated into everyday business practices rather than treated as a separate initiative. As the industry matures in its approach, the focus is expanding to include cultural transformation and talent development, which are seen as essential for long-term success.
A New Era for DEI
At Axa UK, the language shifted from diversity and inclusion to “inclusion and belonging” three years ago. Amanda Vaughan, chief people officer at Axa UK and Ireland, said this change has encouraged greater ownership of the issue across the insurer. Vaughan emphasized that while the terminology has evolved, the company has retained “clear goals, metrics, and accountability,” ensuring that progress remains measurable and intentional. This approach aligns with the broader industry trend of embedding DEI into core business strategies.
The company’s data shows that 99% of new colleagues submitted diversity data, and 83% answered at least two diversity questions. Women now make up 55% of Axa UK and Ireland’s Management Committee. These figures highlight the success of Axa’s holistic approach, demonstrating that a shift in language does not necessarily dilute commitment. Instead, it reflects a deeper integration of DEI principles into the organizational culture, supporting a sense of belonging among employees.
These numbers suggest the industry is moving into a new era, defined by a holistic approach to progress. Jake Arundell, head of inclusion and diversity at Gallagher, said the industry recognizes that inclusion should be part of everyday business. Arundell noted that while the terminology may change, the core principles of respect, opportunity, and inclusion remain central. This evolution signifies a more mature understanding of DEI, where it is seen as a fundamental aspect of good management rather than a standalone initiative.
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While the terminology may evolve, the principles of respect, opportunity, and inclusion remain relevant. This shift could be a sign of success, but it also raises concerns about accountability when progress stalls. Critics argue that without a distinct DEI agenda, it may become harder to track and address disparities. Ensuring that accountability mechanisms remain robust is key to sustaining progress in this new era.
Progress and Challenges
Lloyd’s has seen significant changes since the launch of the DEI-focused event Dive In in 2015. Women now make up 45% of the workforce and 37% of leadership, while ethnically diverse groups represent 16% of the workforce and 11% of leaders. Mark Lomas, head of culture, talent, and communities at Lloyd’s, attributed this progress to the market’s increased understanding of the importance of DEI. He emphasized that the success of initiatives like Dive In has enabled the industry to move beyond awareness-raising to more strategic, data-driven approaches.
This progress allows the conversation to move towards new challenges, such as the impact of AI and the need for new skills. However, there’s a risk that organizations may become less deliberate about hiring diverse talent. As the industry prepares for technological and environmental disruptions, there is a growing need for diverse perspectives to handle these complexities. Yet, the tendency to prioritize familiarity in hiring could undermine efforts to build a more inclusive workforce.
The industry needs more people with different skills, and diversity is presented as part of the solution. Yet, there’s a danger in making the business case the only argument for diversity. While the financial and operational benefits of diversity are well-documented, relying solely on these arguments risks reducing DEI to a transactional issue. Dr. Naeema Pasha highlighted the moral and legal imperatives for equity, emphasizing that diversity should be pursued as a matter of principle, not just profit.
If diversity is only defended when linked to revenue or productivity, what happens when those benefits are harder to demonstrate? The principle should not depend entirely on profitability. This concern shows the need for a values-based approach to DEI, where inclusion is pursued as an end in itself rather than a means to financial gain. Balancing the business case with ethical considerations is essential for sustainable progress.
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Beyond Terminology
The real test is whether the wider approach retains accountability. Lloyd’s and the LMA claim to have infrastructure to track progress, focusing on representation, progression, employee experience, and retention. Both organizations have developed frameworks to monitor DEI outcomes, ensuring that progress is measurable and transparent. This infrastructure is critical to maintaining accountability as DEI becomes more integrated into broader business strategies.
Axa maintains clear objectives and measurement, using diversity data for initiatives like its black professionals development program and ethnicity pay gap reporting. By leveraging data, Axa is able to identify areas of need and tailor its initiatives accordingly. This data-driven approach not only enhances accountability but also ensures that DEI efforts are targeted and effective.
The key questions remain: Are people from diverse backgrounds entering insurance, progressing, and reaching leadership positions? Do employees feel they belong? If the answers are yes, the terminology becomes less important. The ultimate measure of success is not the language used but the tangible outcomes achieved. If diverse talent is thriving and employees feel a sense of belonging, the shift in terminology can be seen as a positive evolution.
If not, a change in language may appear more like a rebrand. The industry must ensure that inclusion remains a priority, regardless of how it’s labeled. As one expert noted, real progress shows up in behaviors and outcomes, not just words. Raj Tulsiani warned that rebranding without substantive change could lead to complacency, emphasizing the need for continued vigilance and action. The industry must guard against the risk of retrenchment disguised as evolution, ensuring that DEI remains a core priority.
