Intermediaries seeking more women - broker study

Intermediaries seeking more women – broker study | Insurance Business America

Insurance News

Intermediaries seeking more women – broker study

BGAs look to close the gender gap ahead of International Women’s Day

Insurance News

By
Kenneth Araullo

Ahead of International Women’s Day, a new study reveals that more intermediaries are seeking to close the gender gap by recruiting more women financial professionals into their network.

A recent study conducted by LIMRA and NAILBA reveals this growing trend among brokerage general agencies (BGAs) and independent marketing organizations (IMOs), highlighting that over 40% of intermediaries either currently have initiatives to support female financial professionals or plan to introduce such programs within the next year.

The study, “Inside the Intermediary 3.0: A LIMRA-NAILBA Study — BGA and IMO Survey Results,” comes in response to the current gender disparity within intermediary networks, where women constitute only 18% of financial professionals.

The effort is also underscored by previous LIMRA research indicating that 44% of consumers consider a financial professional’s gender significant, with a preference for female financial professionals often linked to the soft skills traditionally associated with women.

The study also highlights that younger generations, particularly Gen Z women and members of the LGBTQ+ community, show a higher preference for working with female financial professionals. This demographic trend suggests an increasing need for female financial advisors as Gen Z consumers mature and seek financial guidance, aligning with intermediaries’ objective to expand their network.

Other findings of the LIMRA-NAILBA study

With 65% of intermediaries anticipating growth in their producer network over the next three years, efforts to recruit and support women in the financial professional space are seen as strategic moves to achieve this goal.

More than half of the intermediaries are focused on attracting a diverse mix of both experienced and novice professionals, with 78% offering specialized training tailored to the experience level of their recruits.

Bryan Hodgens, head of LIMRA research, emphasized the importance of continuous recruitment and the provision of innovative services to adapt to evolving consumer needs in the financial sector. Additionally, 60% of intermediaries expect a significant increase in revenue from financial planning and wealth management products and services over the next three years.

Dan LaBert, president of independent distribution at NAILBA, also points out the pivotal position of BGAs and IMOs in providing essential financial guidance to American families.

Life insurance, annuities, and long-term care are identified as the fastest-growing product segments in the next three years, with a notable increase in life insurance production observed over the past two years.

The survey also identifies estate and trust services, retirement-income planning, and insurance planning as areas with high growth potential, suggesting a broadening scope of services offered by intermediaries.

Elsewhere, another recent study from LIMRA revealed that the total new annualized premium for US life insurance saw a modest increase of 1% from the previous year, marking the third uptick in a row.

What are your thoughts on this story? Please feel free to share your comments below.