The protection and health insurance sector needs to be making progress in becoming more diverse in order to better reflect the society and the customer base it serves.
There is evidence that providers are resisting setting quotas in favour of employing more strategic recruitment techniques and artificial intelligence (AI) is offering support in achieving this goal.
But along with this opportunity the sector also sees AI as a threat to improving diversity as it can cut entry routes into the sector for young people.
Significantly, little progress has been noted in terms of diversity extending to the most senior roles with concerns that it has stalled.
Consequently, in order to improve diversity across the board, efforts are being targeted at building talent pipelines at grass root levels by selling insurance as a career of choice in schools.
Not setting quotas, strategic recruitment
“We don’t set quotas, but we are very actively trying to diversify the candidate pool,” Nasrin Hossain, director of people and culture at Shepherds Friendly, tells Health & Protection.
“One of the ways we are doing this is by looking in different places when recruiting and not always following the traditional routes of using recruitment agencies.”
But Hossain also reveals the mutual has started to use job boards that encourage applications from ethnic minorities and it has partnered with an organisation that encourages female returners.
“When we do use agencies, we’re pushing back quite hard when they put candidates forward and insisting we want to see a balanced pool,” Hossain continues.
“Along with others in the sector, we’re trying to be more flexible from an hourly point of view to encourage more people with family responsibilities into the organisation.”
Strategy, purpose and values
Paula Bertram-Lax, chief customer and people officer at LifeSearch, maintains the intermediary has moved beyond policy into lived experience.
“Alongside launching a formal ED&I strategy, we’ve supported colleague‑led communities such as PrideSearch, the Brotherhood, Menopause Group and Autism Awareness, all of which influence leadership thinking and workplace practices,” Bertram-Lax says.
“The growing focus on transparency, data and accountability is encouraging and external recognition through industry award shortlists suggests that where organisations take this seriously, it is making a difference.”
According to Luke McClaran, chief people officer at Vitality, where the insurer has seen most impact with its diversity initiatives is when inclusion is clearly linked to an organisation’s purpose and values.
“That’s when you build a culture where people can thrive for the long term,” McClaran says.
“Inclusive leadership is what turns good intentions into everyday reality,” he continues.
“That’s why investing in people managers is so important, as their day‑to‑day behaviours have a huge influence on culture and belonging.
“Through our long‑running leadership development programme with everywoman, we’ve supported four cohorts so far, reaching more than 230 colleagues across the business.
“Alongside this, we focus on making sure our policies, benefits and ways of working reflect different needs at different life stages.
But actually listening to the needs of staff is critical, McClaran says.
“Our four employee resource groups – covering gender, race, LGBTQ+ inclusion, and neurodiversity – meet quarterly, are chaired by an executive sponsor, and provide a forum for sharing lived experience as well as shaping practical initiatives that strengthen inclusion and belonging.”
Senior level progress and entry routes
It also appears progress is being made in ensuring a gender balance in the boardroom.
Shelley Walker, head of marketing at The Exeter, says: “Women now make up 38% of our executive team and 46% of our senior managers and continuing to build on that is a priority.
“Across the sector more broadly, initiatives around apprenticeships, inclusive hiring and career development are beginning to open the industry to a wider range of talent.
“A more diverse workforce naturally leads to more diverse thinking about proposition offerings, communication and advice.”
But building the talent pipeline of the future is also a key concern for the sector.
And Carrie Johnson, protection director at Royal London, reports the sector has implemented a range of initiatives spanning recruitment, culture and proposition design.
“On recruitment, we have focused on programmes to widen entry routes through apprenticeships and alternative pathways into the industry,” Johnson says.
“From a culture perspective, like many organisations, we have strengthened employee resource groups, mentoring, including reverse mentoring schemes and leadership accountability for inclusion outcomes,” she adds.
“Industry-wide collaboration has also played an important role, with groups such as Women in Protection helping to drive awareness and action.”
LV= is another insurer seeking to widen the talent funnel.
Becky Aggas, lead people partner at LV=, says: “We’re addressing this through broader career entry points, an inclusive culture and clear accountability – expanding access using jobs boards aimed at increasing diverse candidates, blind CV screening and building partnerships such as with the King’s Trust, providing practical, tangible support for young people.
“This is against a backdrop of creating an environment where people can thrive and develop with access to flexible working, wellbeing support and five colleague‑led networks sponsored at executive level, all underpinned by robust data and leadership committed to driving lasting change,” Aggas adds.
Potential and threats of AI
While AI has its detractors in terms of automating a process many think should be human-led, it also has the potential to widen inclusion in recruitment, according to Beth Husted, associate director, health and benefits at WTW.
“From what we’re seeing, AI and automation have the potential to be really helpful in supporting neurodiversity and wider inclusion areas,” Husted says.
“Used well, they can improve accessibility, for example by providing clearer structure, personalised journeys, alternative communication formats and easier navigation of benefits and support.
“They can also help employers make better use of data to understand where there are gaps in engagement or access, rather than relying on individuals to self-identify or advocate for support.
“There are some excellent platforms emerging to really change the way clients and brokers engage with benefits and the opportunities look brilliant – as with any tool, the key is how it’s designed and governed.”
Though Alan Waddington, director at Cirencester Friendly, acknowledges AI’s impact in changing jobs and removing the need for many administration roles, which have in the past been typical entry level jobs.
“This shift makes our apprenticeship programme even more important,” Waddington says.
“It not only provides a route into the business but allows participants to experience a variety of roles across the organisation, learning a wide variety of skills.”
The mutual’s apprenticeship programme is being run in conjunction with Cirencester College.
“It has been successful in encouraging young people at the start of their careers and those looking for a new beginning to see protection in a different light,” Waddington continues.
Power of visibility
Looking more widely at the sector as a whole, Waddington notes that there has definitely been an increase in the number of women in senior positions within the industry over the last decade.
“These leaders are highly visible, showing female employees entering the sector today that they can attain their career ambitions within health and protection,” he continues.
“I think the proliferation of women leaders has also been in part responsible for embracing more flexible working, which will further improve the attractiveness of the sector to a wider range of people.”
But more needs to be done to sell the sector as a career of choice at an earlier stage, Waddington says.
“More could be done to work with schools, colleges and universities to promote the health and protection sector as a dynamic, growing industry that offers a wide range of opportunities,” he adds.
“We know that younger people are more interested in protection than their older peers, so to turn this interest into action, we really need young talent to join us to get the positioning and messaging right.”
‘Diversity has stalled’
Hiring purely on experience is of equal concern for the adviser community.
Joanna Streames, owner of Velvet Mortgage and Insure Services, says: “There is definitely a shift around opening up access into the sector.
“More firms are starting to recognise that hiring based purely on experience limits diversity, so I’ve seen a move towards recruiting for potential and training people up.
“Smaller firms can struggle with this due to time and effort needed for it to be a success.
“However, while the intent is improving, progress still feels uneven across industry.”
Kathryn Knowles, co-managing director at Cura Financial Services, agrees, adding: “I feel like diversity has stalled a bit in the industry. It’s still mainly white middle-aged or older men that seem to have the most presence and positions of influence.
“I think there have been some really positive moves in terms of women gaining more prominence, but I feel that ethnicity and disability are still underrepresented.”
Progress is real but incomplete
For Kristian Breeze, director of healthcare at Ascend Health, the progress the sector is making is real, but incomplete.
“Gender representation shows encouraging movement at some leadership levels, though women remain disproportionately absent from the most senior roles,” he says.
“Ethnic minority representation is improving, but with a familiar bottleneck at the top, particularly for Black professionals.
“LGBTQ plus policies have slipped in priority in some organisations, suggesting that inclusion can still be cyclical rather than consistent.
“Where the industry succeeds is in acknowledging the challenge. Where it must do better is in converting transparency into action.”
And Streames maintains the biggest shift that still needs to happen is there is still too much talk about diversity across the sector, but not enough proof of success.
“It’s not enough to say diversity matters; firms need to show who they are bringing into the business, how those people are progressing and what the long-term outcomes are,” she says.
“Ultimately, this matters because a more diverse workforce leads to better advice, better understanding of clients, and a stronger, more sustainable industry.
“If we want to close protection gaps and reach more people, the people delivering that advice need to reflect the clients they serve.”
