A new survey has revealed what insurance supervisors are doing globally to promote diversity, equity and inclusion (DEI) within the industry.

The International Association of Insurance Supervisors (IAIS) published the “DEI stocktake” survey findings to guide other supervisors on the steps they can take to advance DEI in their own jurisdictions. The Australian Prudential Regulation Authority (APRA) in turn shared the report with the institutions it regulates.

APRA said it “wants insurers to pay attention” to the report and says it will consider how it might strengthen consideration of inclusion and diversity across its regulated industries as part of this year’s review of Prudential Standard CPS 510 Governance.

“APRA recognises that strong diversity and inclusion practices are important elements to ensure the financial system is better able to support the economy through well-run entities and sound financial markets that can respond to the diverse needs of the community,” the regulator said.

"A resilient financial services sector is one that can bring together and respond to different views and perspectives, so that opinions and ideas can be raised and decisions challenged effectively.”

The IAIS, of which APRA is a member, says improving DEI will help insurers build cultures that support sound prudential and consumer outcomes.

The survey found DEI in the insurance industry is a significant focus of industry and supervisors in several jurisdictions with initiatives pursued, most often on gender diversity.

“Industry action is driven by a number of influences, amongst which is the view that DEI helps bring better business outcomes,” the report said.

"Industry stakeholders expressed that insurance supervisors have a role to play to drive further action, although with the caution that supervisors should avoid being too prescriptive.”

The survey revealed growing recognition of the benefits of DEI while pointing to an opportunity for the IAIS to make a “valuable and leading” contribution.

IAIS now plans two new projects specifically focused on DEI: one examining the link between DEI within an insurer’s institution and its governance, risk management and corporate culture, and the other how DEI considerations in insurers’ conduct of business, and in their supervision, may result in fairer treatment of consumers who are vulnerable, under-served or have different needs in comparison with a normative or majority consumer profile.

"The IAIS will continue drawing attention to the importance of DEI for the achievement of better prudential and consumer outcomes and greater inclusion, and encourages the supervisory community and industry to continue progressing activity on DEI,” it said.

The Australian Securities and Investments Commission (ASIC) says when considering the design of a financial product, product issuers should consider consumer vulnerabilities such as speaking a language other than English, having different cultural assumptions or attitudes about money, or experiencing cognitive or behavioural impairments due to intellectual disability, mental illness, chronic health problems or age.

See the IAIS Stocktake report here.