Inclusion in Insurtechs

Thank you Melissa Collett and Jon Snade for the invite to speak at Insurtech UK's summer member social hosted by Browne Jacobson. I appreciate getting to share my thoughts on the importance of inclusive cultures within insurtech businesses and the great work that Link: LGBTQ+ Insurance Network does.

My remarks are below and hopefully resonate with many across the insurance sector.

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Good evening, everyone and happy PRIDE month! Thank you for inviting me to speak to you today. My name is Erik Johnson, and I am a founding Board member of Inclusion@Lloyd’s.?I am ?also the co-founder of Link, the LGBT Insurance Network - the international industry-wide network for LGBT insurance professionals and allies.

As an insurance leader with experience in large multi-national firms as well as several start-ups and insurtechs, I've seen first-hand the stark differences between high-performing inclusive cultures and poor cultures. Poor cultures from my experience are typically riven with conflict, low morale, fear, increased risk, employee turnover, and low overall performance—who would want this? These experiences have driven my passion for advocating around the importance of cultivating good cultures across the industry—not only to drive business performance and reduce risk—but to enhance the working experience for everyone in the sector. High-performing cultures are inclusive cultures.

Research consistently shows that diverse teams outperform. According to McKinsey, companies with a diverse workforce are 35% more likely to have financial returns above their industry medians. The different perspectives, ideas, and approaches that come from a diverse workforce lead to more innovative solutions and better decision-making.

In an industry as competitive and rapidly evolving as insurtech, this edge can be the difference between leading the market and falling behind. As we stand on the cusp of revolutionary changes in the insurance industry, driven by technology and innovation, it is crucial to recognize that our greatest asset is not just our advanced algorithms or cutting-edge software, but our people—the diverse minds that drive our industry forward.

The insurtech industry, a vibrant intersection of insurance and technology, is uniquely positioned to lead by example. We operate at the cutting edge, not just in terms of the products we offer but also in the way we build and nurture our teams.

?nclusive cultures ensure that we can understand and address the unique challenges and opportunities faced by our diverse clientele. This empathy and understanding translate into better products, services, and customer experiences, ultimately driving customer loyalty and business growth.

The competition for top talent in our sector is fierce. According to Deloitte, inclusive workplaces are six times more likely to be innovative and agile. The brightest minds seek workplaces where they feel valued, respected, and able to bring their whole selves to work.

Inclusive cultures attract and retain this talent by fostering a sense of belonging and purpose. When employees feel included, they are more engaged, more innovative, and more committed to their organization’s success. This leads to higher productivity, reduced turnover, and a stronger bottom line.

Regulatory bodies like the FCA, PRA, and Lloyd’s have made it clear that diversity and inclusion are not optional but essential. They recognise that diverse and inclusive cultures contribute to more robust risk management, enhanced decision-making, and improved governance.

By embracing inclusivity, we are not only set to comply with evolving regulatory expectations but also build more resilient and profitable organizations. The importance of inclusive cultures within insurtech businesses is multifaceted. It is a social requirement, a talent imperative, a regulatory expectation, and a performance enhancer.

Let's commit to making the insurtech industry not only diverse but truly inclusive, where every individual feels valued and empowered to contribute their best. Together, we can drive our industry forward and create a more innovative, resilient, and successful future for all.