Can DEI improve succession paths for P&C brokerages? 

At a time when labour retention is top-of-mind across the P&C industry, it’s worth noting brokers answering CU’s 2024 Brokerage DEI Survey say they’re less likely to leave their jobs at companies where senior leadership is more diverse.

In fact, just 33% of respondents at firms with diverse leadership say they’d consider leaving their companies for a variety of reasons, including experiencing workplace discrimination based on identity, a need for more flexibility, and toxic coworkers. Now in its third year, 2024’s survey received 291 responses and was made possible with the support of Sovereign Insurance.

And while 54% of respondents indicate they have left, or considered leaving, jobs for such reasons, the number’s slightly higher (59%) for firms with no diversity in leadership.

That’s cause for concern in an industry where senior staff are increasingly retiring from the workforce (8.5% of the P&C workforce will retire by 2026, according to Insurance Institute of Canada data).

“It’s always good to implement leadership development programs to focus on preparing diverse candidates for future leadership positions,” says Jennifer Lau, director of broker development at BrokerTeam Insurance Solutions Ltd.

“These programs can include leadership training, executive training, skill-building workshops, and opportunities for [experiential] learning.”

Once established, such programs should be “regularly reviewed and updated to reflect those changes within the organization’s talent pipeline,” she adds during a recent Canadian Underwriter LinkedIn livestream panel discussion.

In 2024’s survey, only 13% of brokers say their firms provide senior-level mentoring to diverse talent as a specific means for increasing DEI.

“We do have elevation programs…where [high-performing] people are actually trained to take on promotions or new roles,” says Dorothy Aarons, senior vice president and senior account executive at Aon’s risk management practice. “You have to be specifically recommended for these programs.”

Panellists emphasize it is an employee’s responsibility to be aware of these programs and understand the selection criteria.

 

 

A polarized workforce

With diverse organizations come diverse perspectives.

And 2024’s survey finds 49% of brokers say a rise of polarization has affected their work life in some way. Brokers at firms with no diversity in senior leadership are more likely to report being affected (59%), compared to those at firms leading in diversity (26%).

Drilling down, 34% of brokers say they’re more likely to self-censor in a polarized workplace, and 11% say they interact less frequently with colleagues.

But DEI experts insist it’s possible to have tough and meaningful conversations in the workplace without fear of causing disruption. Structured formats — such as moderated forums or facilitated workshops to guide conversations — ensure everyone engages constructively, thus reducing the risk of polarization, panellists say.

“For the LGBTQ2S+ community, I’ve felt that it wasn’t always welcoming [in] the insurance industry,” says Matthew Campbell, vice president of finance, claims and strategy at Sovereign Insurance. “Over the last few years, [I’ve] really promoted talking about it and embracing awareness and creating panels. By doing this, and talking about my own experience, I’ve seen it really help people transform themselves and be their authentic selves [at] work.

“Last year, we had a panel of executives across the company just talking about their own experiences…It was an ‘ask-us-anything’ session. It just…opened up discussions and awareness and understanding that [we need] when it comes to diversity and inclusion.”

Panellists caution the road toward a more inclusive industry will have some speed bumps and there’s no guarantee mistakes won’t be made. But acknowledging and addressing errors along the way fosters a culture of openness, accountability and progress.

“We were taught growing up not to speak about race and religion, so we’re in a transition stage of really unlearning our entire life within a very short period of time. So just be vulnerable about it,” points out Sheldon Williams, co-founder of the Canadian Association of Black Insurance Professionals, and licensee office owner at Nacora International Insurance Brokers.

“We always have to be vulnerable, and not be afraid to make a mistake, and not be afraid to express who we are.”

 

This article is excerpted from one appearing in the August-September 2024 print edition of Canadian Underwriter. Feature image courtesy of iStock.com/Vanessa Nunes