Building belonging in the insurance market during times of transformation

To say that the insurance market is going through a period of significant change is perhaps an understatement. Businesses are facing a need to adapt and evolve on multiple fronts, whether that’s due to the increasing digitalisation of the market, growing environmental, social, and governance (ESG) demands, evolving diversity, equity, and inclusion (DEI) requirements, or the changing insurance landscape itself. Indeed, KPMG’s recent study into how insurers are driving operational and cost transformation highlights the wealth of change in the market. As the report outlines, priorities are being reevaluated in insurance, with investments in AI and data analytics capabilities aimed at not only protecting against new threats but also capitalising on emerging opportunities.

All of this is exciting for the employers and people in insurance. However, there’s a caveat to delivering against this success: cultures need to ensure the right people are recruited and retained. For that, there needs to be a sense of belonging cultivated in the industry.

Building belonging in insurance

The ability to create a culture and sense of belonging has a wealth of benefits. Morally and ethically, it is the right thing to do – after all, it aids diversity and inclusion across businesses and the sector. Indeed, the employers that we work so closely with in the Lloyds of London markets are hugely committed to creating an authentic sense of belonging in their business for everyone.

Aside from it being the right approach generally, a culture that is truly inclusive and allows everyone a place to feel like they belong as their true self has benefits for businesses, too. Retention rates will, of course, be positively influenced if a sense of belonging is felt by the workforce. Indeed, there’s a wealth of data that connects the right culture with a reduction in staff turnover.

Studies have shown that employees who feel included at work are 50% less likely to quit. Given that the insurance remit has faced ongoing skills shortages, this makes it more imperative to ensure staff feel that they belong.

Improving people performance

This sense of purpose in their work and inclusion in the business builds motivation in the workforce. If people truly feel valued, they are more likely to perform to their absolute best. Data from BetterUp shows that people with a strong sense of belonging at work are likely to note a 56% increase in job performance.

When we also consider that research from Gallup has shown that low staff engagement is costing the UK economy an average of £257 billion annually, then it’s evident that any method of keeping workers motivated will be beneficial. That, in our view, (and as evidenced in the above-mentioned research), starts with creating a sense of belonging within the workforce.

Supporting leaders

The question, then, is how insurance businesses can achieve this. The solution isn’t simple, nor is there a one-size-fits-all silver bullet. However, one place to start is at leadership level. Cultures are lived, breathed and influenced by all, but they are cultivated and nurtured from the top.

The KPMG report talked of leadership accountability in the transformation of insurance. That extends to the cultures that are created within each business. However, just because individuals are in a senior or management position, it doesn’t mean they have necessarily been equipped with the tools and confidence in DEI to be able to ask the challenging questions they need to and support their teams in order to ensure an authentic sense of belonging is fostered across the business.

It’s important that the right training and development is invested in for leadership teams in insurance if they are to deliver against the evolving requirements that the sector is seeing. Again, the impact this can have on organisational performance presents a business case that can’t be ignored.

We know from previous surveys that leadership development can have a significant impact on organisational performance. For example, according to Deloitte, top-performing organisations allocate approximately 20-25% of their operating expenditure on workforce skills development (including training, leadership, and technical upskilling), while those that are considered to be ‘average’ performers spend around 15-20%.

Leaders do need to be held accountable for creating a culture of belonging, but they can’t expect to do so without the knowledge and insights to do so effectively.

Be part of the conversation

These topics are not only crucial for the insurance sector, but also topical as the eleventh annual Dive In festival opens for registration, with a theme of “Belonging Builds Tomorrow”. The global movement in the insurance sector is dedicated to fostering workplace cultures where talent can thrive, and every year the sessions provide a wealth of insights and practical advice to help businesses empower their people, attract diverse teams and retain top talent.

We have supported Dive In in the past and are delighted to be a Local Festival Partner this year, where we’re more involved in the event than ever, including running sessions throughout the three days, all aligned with our mission to create a more inclusive world of work. We know that true belonging is born when people and leaders feel safe enough to challenge today’s status quo and work together on building a stronger and brighter tomorrow.

The Clear Company’s approach to fostering belonging centres around creating inclusive environments where every employee feels valued and respected, at every stage of the employee lifecycle. We help our clients achieve this through taking a strategic and holistic approach to their hiring practices, ongoing upskilling, leadership development, policies and processes, and performance management, among other areas.

In promoting cultures grounded in understanding, empathy and allyship, strong and cohesive teams can thrive and develop into future change makers. Join our team at Dive In to find out how you can deliver this for your business. If you haven’t already registered for Dive In, click here to register today – it’s a not-to-be-missed event.