Will lack of diversity mean the end of your brokerage?

Investing in diversity, equity and inclusion (DEI) initiatives could literally spell the difference between survival and death for a brokerage, a panellist suggested Tuesday during a Canadian Underwriter webinar.

Colette Taylor, chief operating officer at Sovereign Insurance, said she was concerned with a recent poll that found 73% of 322 respondents indicated they evaluate talent based on merit and “don’t see the need to change our practices.”

That CU online poll, fielded in January and February 2023 with the support of Sovereign, also found 31% of respondents described their organizations as ‘leading’ in making DEI a core principle supported by best practices (6% lower than in the 2022 survey). But 15% of firms said they had not yet started on DEI efforts, 4% higher than 2022.

Taylor bluntly told webinar attendees that brokerage leaders need to consider DEI if they want to stay in business.

“To put it plainly, decide how long you want to be in business for because in the short term, you probably don’t need to be putting too [many] resources around diversity,” she said during the webinar, The inclusive brokerage: Tactical DEI strategies for P&C firms. “And if you want to put your resources in other places and you have an exit strategy that you’re like, ‘We’re out of this in five years,’ you’re probably going to be fine.

“But if you have a longer term play for your organization and you want it to be a lasting brand within the Canadian marketplace, then I highly recommend that you prioritize this because the face of Canada is changing.”

Data from Statistics Canada show demographics are changing, which can be used to embrace change and prepare the workforce for future success, added Janice Gladue, chief operating officer at TIPI Group of Companies. This begins with acknowledging at the leadership level the importance of DEI. Ask leaders within your organization how they are prioritizing DEI, Taylor added.

Commitment needed

“We can acknowledge that it’s the right thing to do, but it will only move the needle so far,” Gladue said. “There needs to be a commitment to look earnestly at the systems, policies, processes and practices that may be barriers to success in DEI.”

For Craig Pinnock, chief financial officer at Northbridge Financial Corporation, bias training and education is critically important. While the concept of ‘privilege’ is often construed as negative, it’s really just a matter or being largely outside a person’s control.

“It gives you a leg up,” he said. “Just acknowledging that gives you the understanding that there’s a group of individuals that did not get that same privilege and therefore they have a significant number of plights now.”

For those who think they are good without diversity, “Do you want to be good or do you want to be great?” asks Christopher Aloussis, co-chair of Link Canada, the 2SLGBTQ+ Insurance Network. It’s short-sighted to say diversity isn’t going to help make an organization better, he argued.

“As the science has clearly showed us, there is a huge benefit to the workplace to the economic future of the company by embracing diversity, bringing in external organizations, bringing in those individuals that have a different background, have a different perspective,” Aloussis said. “[It’s] shown time and time again to be able to drive better solutions and make it a more equitable workplace for everyone.

“When someone says, ‘Oh, we can go without [DEI],’ there’s no real scientific backing behind it. It’s just a personal belief…”

Feature image by iStock.com/FG Trade