Overall, the insurance industry is a great place for women.

Women outnumber men in insurance agencies, making up nearly 60% of agency employees, according to data from Liberty Mutual. Many women in the industry say they enjoy the flexibility insurance allows and love that they get to spend every day helping people protect the things that matter to them.

However, the insurance industry has an opportunity to better embrace gender diversity moving forward. As in other industries, women are underrepresented in leadership positions, with women making up just 31% of agency principals and owners. While women have made immense strides in the industry, they still face unique challenges.

At Liberty Mutual and Safeco’s Agent for the Future, we want to see all independent insurance agents win. And studies make it clear that hiring, promoting and retaining more women is good for business.

As companies adapt to the big shifts happening in workplaces in the aftermath of the pandemic, it’s a great time for agencies to reexamine how to create workplace cultures that make every employee feel like they belong and are valued.

We surveyed more than 350 women in independent insurance agencies to learn about the challenges and opportunities they face. In this report, we’ll dig into the findings, show women making great strides in the channel and provide resources to empower women to succeed.

The goal of this report is to support all agents – regardless of gender – in better understanding their own experiences and those of their co-workers and learn practical steps to empower women (and, consequently, their agencies) to thrive. Even if you have not personally experienced some of the challenges covered in this report, we encourage you to “try on” others’ perspectives and consider how you can make your agency a great place to work for everyone.

Keep reading below the infographic to learn more.

Resources for your role and career stage

Along with providing stats and insights into the state of women in agencies, this report also includes resources and action items for anyone who wants to empower women to succeed in insurance. Everyone – no matter their role, age, gender or any other factor – plays a part in building diverse and inclusive workplaces.

While every individual has a unique perspective and differing needs, we recognized some commonalities in our research findings that we’ve used to provide targeted takeaways. You may use these resources for yourself or to better understand other members of your team and share helpful materials with them.

Throughout this report, you’ll find action items for each of the four categories of insurance professionals below. Choose which description(s) most resonates with you; then follow along with the action steps for that group as you progress through the report and view a complete list of resources at the end of the report. Keep in mind that you or your staff members may identify with more than one of these groups and will likely move between them throughout your career.

Four key areas to support women

When we asked women what they would change about working in insurance, four key areas emerged. The numbers from our research back them up and give us a framework to understand the unique challenges women face and opportunities we all have to lift up women in the channel.

Representation: Fostering women’s career development

In the insurance industry overall, women outnumber men, making up more than half of agency employees.

However, women are still underrepresented in the highest positions. There is an opportunity for agencies to better tap into the full potential of all employees to bridge the talent gap and create perpetuation plans.

Women have made gains in leadership roles. According to the 2020 Agency Universe Study, the percentage of agencies with at least one woman in a principal or senior leadership role increased by 7 percentage points between 2018 and 2020. Smaller agencies and new agencies were more likely to have women in leadership.

However, according to data from Liberty Mutual, women make up 96% of CSRs and 68% of producers (with some crossover between the roles) but only 31% of agency principals and owners.

More than one-third of female agency principals say they are often the only woman in the room.

This mirrors the picture of women in the wider workforce. McKinsey found that for every 100 men promoted to manager positions, only 86 women are promoted. This results in fewer women in higher leadership positions, with women making up only 24% of C-suite executives (and women of color making up just 4%).

The benefits of women in leadership

Studies have shown that having women in leadership is beneficial to a company’s profits and culture.

McKinsey found that companies in the top quartile for gender diversity on their executive teams were 21% more likely to have above-average profitability than companies in the lowest quartile.

Another study by Credit Suisse Research Institute found that “companies with higher female participation at board level or in top management exhibit higher returns, higher valuations and higher payout ratios.”

McKinsey also found that female managers were better at consistently providing emotional support and checking in on employees’ overall well-being. These actions are proven to increase employee satisfaction and help prevent burnout, which are especially important aspects of creating more human-centered workplaces.

Other studies have shown that women outscore men on key leadership capabilities and that women in sales roles outperform men.

Stepping up

More than half of female agency principals said they want to learn about ways to recruit more women into leadership positions.

Our research found that many women are ready and eager for those growth opportunities. 43% of women in frontline staff roles said they would be interested in resources to help them make the case to be considered for perpetuation planning, and 36% said they were interested in becoming a partner in their agency. That percentage was higher among women ages 23-49 – with more than half saying they were interested in becoming a partner and 27% saying they wanted to learn about steps to buy or start an agency. Across all ages, only 15% of women we surveyed said they could not picture themselves as a leader at an agency.

For agency owners looking toward retirement, this suggests that there may be an opportunity to create a perpetuation plan to have a current employee take over the agency rather than selling to an outside party.

Experiences of women’s representation in agencies varied widely. Some women expressed frustration at continuing “old boys’ club” attitudes. When asked what she would change about working in insurance, one 33-year-old CSR said she wanted to see more women empowered and trained for sales and leadership positions. “Stereotypically, we are in support functions and men come and go only in sales,” she wrote. “We don’t get invited to the same events [and] often feel left out.”

Others expressed optimism about how they’ve seen gender equality advance. “I just turned 50 and have been working in insurance since I was 18,” wrote another CSR. “I have seen a lot of changes in the industry …  However, I was hired by a female vice president and have had at least 50% of my managers and leaders be female. I have always felt that this is an industry where women stand a greater opportunity for equality. More so now than ever before.”

Recognition: Appreciating women’s contributions

Women bring a lot to agencies, no matter their role.

Most women in insurance feel like their contributions are recognized – 70% of frontline staff feel that the leadership in their agency recognizes them for their contributions.

However, that leaves roughly one in three frontline staff who feel their contributions are not recognized. Women in frontline staff roles listed loyalty and appreciation as the most important priorities for women in independent agencies.

When asked about their experiences in agencies, women pointed out that often, the things that go unnoticed are the things that keep the agency running and make it a great place to work but don’t necessarily result in big sales numbers.

“In many cases, women are the backbone of the agency,” wrote one producer.

“I think sometimes our work goes unnoticed because it is the bottom-of-the-line things that everyone takes for granted,” wrote another survey respondent.

“It’s not always about money,” wrote another. “Longevity, loyalty, mentorship should all be honored and recognized.”

Attitudes about women

While nearly 90% of agency owners and principals feel they receive the credibility from peers and staff they deserve, many still reported feeling like they had to work harder than their male peers to prove themselves.

“I have been a leader in my agency for the last eight years in some capacity,” wrote a 57-year-old COO. “Even now, I am often asked if my male boss has to approve my decision. Sometimes in meetings people make eye contact more often with him and make comments directly to him. It’s getting better, but I think we have a ways to go.”

“It just seems to take longer for women to be noticed or appreciated,” wrote a 38-year-old agency manager. “It is much harder to be taken seriously as a woman, but we overcompensate to make sure we’re seen and heard. And because of that, the women I know are amazing agency managers/owners, and they are amazing people in general.”

While attitudes about women in insurance are improving, 30% of the women we surveyed said they sometimes feel uncomfortable about comments that are made about women.

Compensation: Creating pay equity

Discussing pay can be a touchy topic, but competitive compensation and benefits are key parts of attracting and retaining talent.

In the U.S., there has long been a gap in pay between men and women, with women earning 84% of what men earn, according to Pew Research Center. The gap is smaller among younger women (25-34) and widens with age. The gap is also larger for women of color.

The reasons for the gender pay gap are complex – we encourage readers to explore the research from Pew and the resources at Lean In to learn more about factors that contribute to the gap.

The reality – or even the perception of – unequal pay hurts employee retention and satisfaction. In a study by Totaljobs, 40% of working women said they would likely quit if they found out a male colleague in the same role was being paid more.

If agencies want to retain talented women, agency leaders need to make sure they are offering competitive pay rates. They also need to be transparent about compensation models, so women know they are being compensated commensurate with their male counterparts.

Pay in insurance agencies

The financial services industry has one of the widest gender pay gaps, with women in financial services making 60-70% of what men make. According to the U.S. Department of Labor, female insurance sales agents – those in producer roles – make 67.6% of what male agents make. Data for service and other roles was not available.

Women in insurance agencies are aware of this gap. Our research found that 64% of women in frontline staff roles feel they are paid somewhat less or significantly less than their male peers. Asked what they would change about working in insurance, many respondents mentioned equal pay.

“Women are paid less, work harder, longer and faster, wear more hats and don’t get fair compensation,” wrote a 36-year-old principal.

“I definitely know men make more than women, but I also see how the women work much harder, accomplish more than the men,” wrote a 41-year-old producer. “As a single, full-time working mother who is not given child support, I have to deal not just with the struggles at home and at work, but to do so with less money.”

Principals are more likely to feel that they are paid the same as men, with nearly half saying they thought their salaries were about the same as male peers. More than half of all the women we surveyed said they felt that the gender wage gap in insurance was about the same as in other financial service industries. And 30% of principals said they thought it was better.

Satisfaction: Why the IA system is a great place for women

Overall, employees in the insurance industry report high levels of job satisfaction.

A study by CapRelo found that the median job tenure for insurance employees was 5.5 years – among the highest for private-sector jobs.

Even when employees leave a particular job, they usually stay within the industry. A study by Vertafore found that 74% of millennials and 79% of Gen-Xers said they plan to stay in the industry for as long as possible.

However, the insurance industry was not immune to the “great resignation,” which saw record numbers of employees in the U.S. quit their jobs during the pandemic. Women were especially likely to quit. According to the U.S. Bureau of Labor Statistics, 2.5 million women left the workforce during the pandemic.

A March 2021 survey by Accenture found that 32% of women in insurance left their jobs temporarily or permanently during the pandemic. It’s unclear how many have since returned.

While there were many reasons women left the workforce during the pandemic, one of the biggest factors was childcare and family responsibilities, which still fall disproportionately to women. Six in 10 of the women Accenture surveyed said they felt increased pressure from being the primary caregiver for school-aged children, and nearly 40% said flexible scheduling and paid leave were the top ways employers could help.

Insurance agencies are great places for work-life balance

Workplace flexibility is a benefit for all employees, not just working mothers.

In the last two years, many agencies re-evaluated their office structures. Some have adopted hybrid working arrangements, allowing employees to work remotely when needed. As workplaces have shifted to more remote work options, workers have come to expect flexibility in location and hours.

A study by Future Forum found that more than 70% of workers who weren’t happy with the flexibility of their current job would likely look for a new job within the next year.

The good news is that insurance agencies are well suited for offering flexible schedules and encouraging a healthy work-life balance.

More than 80% of all the women we surveyed said their job allows them to balance their personal life and work. And 92% of women in frontline staff roles told us they receive flexibility when they need it.

Many of the women we surveyed cited flexibility as one of the reasons they would recommend a career in the insurance industry.

“This has been a wonderful career path for me as a woman, a mother and a business owner,” wrote a 61-year-old producer and previous agency owner. “I would recommend agency ownership and leadership to anyone of any gender for its flexibility and ability for advancement and recognition based on good sales and management styles.”

It’s important to remember that every agency employee will have different needs for flexibility. There won’t necessarily be a one-size-fits-all approach to remote work arrangements and flexibility. Agency leaders should have open conversations with employees to understand their needs and find solutions for a healthy work-life balance.

Empowering women in insurance agencies will drive future success for the entire independent agent channel.

With women making up more than one half of agency employees but less than one third of owners and principals, there are tremendous opportunities for agencies to tap into the potential of female employees, invest in their career development and consider them for perpetuation plans.

As shown in this report, hiring and promoting women is good for business. Offering opportunities for career growth to all employees can help agencies attract and retain top talent and bridge the talent gap.

Independent agencies are great places for women, but there are opportunities to create more inclusive agency cultures that will drive success for every employee and for the agency as a whole.