How to axe insurance’s Old Boys’ Club

The University of Nottingham’s Transforming EDI practices in UK Insurance study carried out in 2023 found women working in insurance felt they had been “overlooked” and “not heard” in favour of white men.

Additionally, participants felt advantages had been conferred on men who were “personal contacts” of senior people in the organisation, who shared “socio-economic backgrounds and interests” including cricket, golf, football and rugby.

One participant told the university’s researchers: “Some of the cultures are still very old boys’ school and you know they’ve all got nicknames for each other. They’re all down the pub and like, ‘If you don’t drink then you can’t fit in’ and there’s still a lot more than you think of that still around.

“I think that’s quite off-putting, especially for the younger generation, cause actually they’re not as interested in all of that. For me to fit in, I had to join in, and I don’t want people to have to join in on that if they don’t want to, and it shouldn’t affect their career.”

The Old Boys culture reported by this study’s participant has been echoed by professionals in the industry, with its impact felt by women, ethnic minorities and people with working class backgrounds.

They’re all down the pub and like, ‘If you don’t drink then you can’t fit in’ – there’s still a lot more than you think of that still around.

Vivine Cameron, equality, diversity and inclusion manager at the Chartered Insurance Institute, explains: “I was talking to a tenured individual in insurance who wasn’t born in the UK and he shared with me that another insurance professional asked him ‘Where did you go to university? 

“The inference was that where that individual studied would have some bearing on their professional capabilities and their acceptance.

“I’m going to take the view that if that individual was from the UK and had gone to a university that the other insurance professional recognised then they would have considered them ‘one of the boys’ in their club.”

While many industry professionals noted progress has been made towards creating a more diverse industry, some insisted  there is still a long way to go towards achieving inclusion, and as the Dive In festival approached, Insurance Post challenged the industry with answering what has been done to axe the ‘Old Boys’ culture.

Pale, male and stale

Donna Scully, director at Carpenter’s Group, says in her role as a mentor in the Insurance Breakfast Club – a professional development a networking programme for female insurance professionals – she still has women come up to her and say the industry is very “pale, male and stale”.

“They ask me ‘how do I get promoted?’, ‘how do I assert myself without being seen as pushy?’, so there is still a feeling from women in insurance that they are not completely seen or taken seriously and it is harder for them to get a promotion,” she explains.

One participant of the University of Nottingham study shared: “Maybe it’s just a coincidence that there’s not been any other people of ethnic minorities being employed in the last six months that I’ve been here. Also, this kind of raises the question like, surely there are other people of ethnic minorities that are qualified to do this job? 

“Because I mean, they have been employing school leavers and recent graduates. So you can’t tell me that there’s only one demographic or person applying for these jobs.”

However, many within higher up positions in the industry feel this perception is not entirely accurate. Joanne Wright, people and culture director at Specialist Risk Group, says: “I think it’s an old label, but no longer a lived experience.”

Caroline Taylor, chief operating officer at Acies MGU, adds: “In my experience, though there are pockets of the ‘pale, male, stale’ brigade, it does a disservice to the many men do advocate for change in our industry.”

Despite mixed feelings about the accuracy of the label, it is clear the perception exists and participants from the University of Nottingham study felt nepotism played a major role in this.

Nepotism in the industry

“Nepotism definitely exists in the industry. A number of the younger people we’ve taken on, they have family members, close family members who work in the industry,” one respondent to the University of Nottingham’s study said.

Katie Baker, marketing executive at specialist insurance recruitment agency Pavilion Recruitment, explains this nepotism may not necessarily be intentional.

“When it comes to having a career in insurance, a lot of the time it’s an accidental career, maybe they dream of being a doctor or a fireman, so the nepotism may only occur because people have never really known what it’s like in insurance, unless they have close friends or family there who know how good it is,” she explains.

Despite the intention, the impact of having an industry where most people have a certain background can be negative on those who have a different lived experience or no contacts inside the sector and prevents the industry from capitalising on the full benefits of a diverse workforce.

To tackle both perception and nepotism challenges, organisations have put various initiatives in place aimed at ensuring the widest pool of candidates are aware of opportunities and job adverts are as inclusive as possible.

The Association of British Insurers has a Diversity, Equity and Inclusion blueprint, which advices firms on how to make the insurance industry diverse, equitable and inclusive.

The approach is split into three themes – attract, grow and advance.

Rebecca Deegan, chief sustainability officer at the ABI, says: “In terms of recruitment, the blueprint sets out good practice for ABI members to ‘attract’ skilled and diverse applicants to a range of roles in the sector.

“This includes providing potential applicants with information about their organisations’ DEI policies in an accessible format and using inclusive phrasing and imagery throughout the recruitment process. It also includes a call for firms to ensure all recruitment is through centralised, consistent processes as opposed to personal networks.”

Jonny Briggs, group head of talent, diversity and inclusion at Aviva, affirms the firm was “heavily behind” this blueprint, and while they were unable to do the full 40 recommendations, he feels even small steps can make a significant impact.

Aviva tailored its job adverts to ensure they would be attractive to “all communities” by publishing salary bands, which he says made a “seismic difference”, and changing the language to focus on skillsets needed rather than qualifications and experience.

Briggs says these measures led to a 6% increase in female applicants, as well as a 9% increase in female leadership applicants.

Acies MGU’s Taylor explains this is likely because women will only apply for a job if they meet at least 75% of the criteria, while men apply if they meet 25%.

“We can open up more opportunities if we keep criteria to the must-have skills or experience, rather than a whole laundry list of desirables.  The more we list, the more chances of turning off a potential applicant, and the more complex we make the requirements, finding the right candidate becomes akin to finding a unicorn,” she adds.

Luke Cahil, director at recruitment agency Hays, which specialises in insurance, adds: “We’re also seeing a decrease in strict degree criteria on job ads meaning organisations are eager to welcome talent regardless of their academic background.”

Ajay Mistry, co-founder of the Insurance Culture Awareness Network, says companies are also using external DEI partners to promote roles to diverse groups. Ageas, Hiscox, Zurich and SSP Worldwide confirmed that this is included in their inclusive recruitment measures.

Ageas has also implemented training in inclusive recruitment practices for hiring managers, including how to recognise and eliminate unconscious bias, according to HR director Sian Myers.

Hiscox’s chief people officer Nicole Grant says her company insists on diverse shortlists and interview panels, including having interviewers from other business functions to get a different perspective.

Grant shares Hiscox’s “clear stance” on nepotism, allowing anyone to put a candidate forward but only those who meet the criteria will be interviewed, and this is monitored by the Hiscox risk team.

Steve Collinson, chief HR officer at Zurich, shares that his hiring managers sign-up to the firm’s recruitment charter and code of conduct, with mandatory training on the code of conduct each year.

Hays’s Cahil also notes many employers are offering training and development schemes, allowing insurance companies to nurture and develop talent.

Zurich is an example of this approach, with its intern, apprentice and graduate schemes, which were expanded in 2023 to allow graduates to develop expertise in several areas.

The Lloyd’s of London Inclusive Futures programme, which aims to help black and ethnically diverse individuals access the insurance industry and progress from classroom to boardroom, was also cited by several professionals as a scheme to nurture more diverse talent.

But Nicole Adeleye, consultant analyst at Altus Consulting, notes that while many of these measures are great for attracting and supporting entry level talent, they need to extend to senior leadership positions.

Research from the Bridge Group shows more than 42% of senior roles in financial services are held by white men who went to an independent or selective school.

Adeleye says: “In an industry where the perception remains that promotions and senior positions are disproportionately benefiting white males, there is a clear need for a rigorous examination of internal practices governing several areas including, promotion criteria, job descriptions and diversity in leadership positions. 

“Furthermore, this must also extend to the ‘hidden corporate perks’ and subtle biases embedded in job postings that can dissuade talented individuals.”

Role of artificial intelligence

Many firms shared those subtle biases can come up in the language used in job adverts and descriptions, with certain words putting people off applications.

Hiscox’s Grant says: “There is quite a lot of research out there that says women are put off by terms like ‘competitive’, ‘assertive’ and ‘dominant’.  Using superlatives like ‘expert’ or ‘world-class’ can put them off too.”

Nicky Hunt, head of people and culture for insurance at Collinson, also shares “competitive”, “challenging” and “driven” as examples of terms used that deter people from entering the industry.

To assist with ensuring inclusive language is used, many companies including Ageas, Aviva and Guidewire have implemented the use of artificial intelligence technology.

Sinéad Condon, chief people officer at Guidewire, shared HiredScore as an example of tools that aims to be “responsible AI for HR”, with various functions including detecting biased language.

Aviva’s Briggs says his business uses Textio to remove jargon and make language more “gender-neutral” and Hiscox’s Grant says her organisation is at the start of a “transformation journey” for its talent acquisition team that will implement the use of AI for creating inclusive role profiles and removing bias from its processes.

Guidewire has already implemented inclusive profile technology through its AI-driven learning experience platform, which builds skills and capability profiles for every employee without including biased characteristics.

Condon says: “When we have an open job opportunity, it goes directly into the talent marketplace, and it picks the people that have those capabilities. It’s very skills and capabilities focus so there’s no bias.”

The Department for Science, Innovation and Technology’s report on Responsible Artificial Intelligence in Recruitment reads: “Adopting AI‑enabled tools in HR and recruitment processes offers the automation and simplification of existing processes, promising greater efficiency, scalability, and consistency. 

“However, these technologies also pose novel risks, including perpetuating existing biases, digital exclusion, and discriminatory job advertising and targeting.”

Zurich’s Collinson echoes this, saying: “The use of AI has to come with a word of caution – the tech can get it wrong and it’s crucial it’s used as one of a number of aides, with humans making the final decisions and signing off wordings.”

As a result of this, nearly every firm emphasised the need for human oversight and insist humans have the final say on selection.

Aviva’s Briggs says: “We are not yet in a position where technology will make a decision for us in terms of somebody progressing. Every applicant will have a human making an ultimate decision in regard to that.”

Jamie-Rogers Nelmes, head of operations at Pavilion Recruitment, adds: “AI is not enough to remove all the prejudicial wording, it definitely needs a human eye. It’s been created by humans so naturally, it’s going to have some sort of prejudice built in whether it’s intentional or accidental, and the only way to combat that is to have a human check that it is doing what needs to be done.”

However some firms maintain a stance that technology is not needed in the process of shifting the industry away from being an Old Boys’ Club and towards a more diverse and inclusive culture. SRG’s Wright says: “I think we should be capable as business leaders to do that ourselves.”

A culture problem

Ultimately, the challenge for insurance goes beyond the perceived or real make-up of industry as well as it’s practices and must bleed into embedding true cultural change.

As Post previously explored the insurance industry has held a reputation for having a drinking culture.

Acies MGU’s Taylor says: “At many insurance events, the ’soft’ option feels like an afterthought. Where buckets of beer and bottles of wine are plentiful, soft drinks often have to be asked for specifically, and despite a huge array of good alcohol-free options, tend to be limited to coke or lemonade. Like it or not, alcohol still plays a supporting role in the insurance culture.”

The University of Nottingham explored that this had repercussions in the form of fuelling racist behaviours and sexual harassment, and many feeling like in order to advance in the industry they would have to engage in “excessive alcohol consumption”.

The CII’s Cameron echoes this: “I have spoken to pre-Gen X professionals who have shared that drinking and sports were key drivers in getting access to opportunities and if you couldn’t hold your own, then that would be questionable for you continuing in your role.”

The welcoming of a new generation, who seemingly have different priorities has forced the industry to start to shift away from the Old Boys’ Club culture, where participating in smoking breaks, watching sports together or drinking to excess at a bar could prompt promotion. 

Taylor explains: “As new generations enter the sector and society becomes more health conscious, we are naturally seeing changes in culture.”

To propel this change forward, iCAN’s Mistry says firms have implemented more networking opportunities without drinking and have focused on informal meetings centred around getting to know employees.

Hiscox has a “dry workplace,” according to Grant, as well as inclusive entertaining within the arts space in their offices.

Collinson shares Zurich has taken a similar approach with alternative reward and team activities, such as through its volunteering programme.

Altus Consulting’s Adeleye also shares Lloyd’s banning of alcohol during work hours as an effort to turn things around.

Myers adds: “Our senior leadership team has developed their position as role models with training delivered by Men for Inclusion. This training is now being rolled out to male employees across our business, encouraging them to develop their role as allies that actively mentor and champion under-represented groups.”

Briggs says role modelling plays a major role and Aviva Group CEO Amanda Blanc has been a key driver in changing the culture, as he describes her having more diverse senior leaders as a virtuous circle leading to “better behaviours and better profits.”

More power to HR

To bring about cultural changes, many individuals state people teams need to have authority and resources to create consequences for poor behaviour.

Hiscox’s Grant says: “You’ve got to have clarity on your standards of behaviour and take action when people don’t live up to those standards. People need to feel psychologically safe to speak up and to trust that their complaint will be handled sensitively.”

Mistry adds firms must implement recruitment process accountability and demographic data collection to identify what is happening at “each stage of the process”.

Ageas’ Myers notes the executive team reviews the gender and ethnicity data of candidates interviewed and subsequently recruited every quarter to ensure that the firm’s inclusive recruitment policies are working.

Aviva’s Briggs cites his firm’s engagement survey, which is used to collect data on every employee characteristic and revealed to the firm that there was a gap in its socioeconomic background diversity. 

Just 16% of the firm’s leaders are from a low-income socioeconomic background, with 21% of employees fitting this description across the entire organisation.

Adeleye adds it’s not just about creating policies, and HR departments have to be elevated: “To ensure HR departments are not enablers of favouritism, they must be given greater authority and independence. 

“This could involve placing HR representatives on key decision-making boards and committees; allowing them to have a real impact on hiring and promotion practices.”

Hiscox, SRG and Guidewire were examples of HR having a seat at the table, but it was clear this not widespread across the industry and this may be a blind spot for many firms.

Guidewire’s Condon says: “I do hear some folks say ‘HR should have a seat at the table’. It’s so foreign to me to hear that because I’m a business leader and it’s a very foreign concept to me that I would not be on an equal playing field.”

Further blind spots

As well as the exclusion of HR from executive committees and a lack of results for senior leadership diversity, a lack of diversity and inclusion measures from smaller companies and brokers was also highlighted as key barriers to ditch the industry’s Old Boys’ Club reputation and shift it towards greater diversity and inclusion.

Briggs explains he has had many smaller brokers approach him wondering what to do to further diversity and inclusion, feeling they may not be in a position to make change due to the lack of resources in comparison to larger companies.

“Actually, everyone can do something. You do different sizes; you get different baselines. Start small and a little bit goes a long way,” he says.

The University of Nottingham acknowledged smaller firms have “bespoke challenges” when it comes to implementing EDI and recommended they start by setting out an EDI strategy, stay alert to EDI ramifications, communicate transparently and continuously on EDI so it becomes “business as usual” and keep up with developments in EDI.

The university’s report read: “Even the smallest firm can choose values to have a positive effect within the environment in which it operates.”

While many strides have been made to axe the Old Boys’ Club in insurance, it is clear that there is still work to be done in senior leadership, smaller businesses and placing HR among other business leaders, just to name a few. 

The work is continuous and to-date the “progress has been made” is not enough to ensure this is a sector where everyone, regardless of their sex, race, gender, sexuality, beliefs or ability can thrive.