A summary of plenary 3 at the IFoA Conference (26 to 27 June 2023). The session discussed ‘delivering the IFoA DEI strategy: making our profession diverse, equitable and inclusive for everyone’.
Maz Bown, Chief Risk Officer for Aviva Insurance Limited
Peter Hamilton, Disability and Access Ambassador for the UK insurance industry
Stephen Mann, CEO of the IFoA
Sue Lewis, Chair, Consumer Advisory Board and Lay Member of IFoA Regulatory Board
Vincent Keaveny CBE, Chair of Progress Together
Kartina Tahir Thomson (Chair), incoming President-elect of the IFoA
The first part of the panel explored aspects of the IFoA’s DEI strategy and Actuaries Code consultation.
Stephen Mann began by discussing the IFoA’s diversity, equity and inclusion (DEI) strategy, which was agreed in the autumn of 2021. It focuses on 4 main areas: leadership and culture, entry to the profession, career support, and community.
The strategy embodies 3 principles. First to adopt the highest standards in areas we can directly control. Second to hold others to high standards where we have influence. And third, if we can only speak about DEI issues, to do so in a forthright way. The strategy is intended to be thoughtful and actionable, and the IFoA is pleased that it has received strong engagement from employers.
Increased data collection has highlighted some of the DEI challenges the IFoA faces. One survey looking at socio-economic diversity found that 39% of the UK population have a working-class background compared to only 20% of IFoA members. It is therefore essential for the organisation to be seen as warm and welcoming to all.
Sue Lewis described the recent consultation by the IFoA’s Regulatory Board on changes to the Actuaries Code. The proposed changes relate to integrity and speaking up.
The responses were polarised, with particular concerns about how to define fairness and the potential for unjustified complaints about members. Some respondents asked for detailed guidance.
The board decided to proceed with changes to include DEI within the code, but to amend the proposals in light of the responses received. In terms of timing, she reported that a feedback statement would be issued in July, with guidance later in 2023 and the new code coming into force in the spring of 2024. There will also be a process of engagement with employers and members about the changes.
Focusing on disability, Peter Hamilton said that three quarters of disabled people have rejected companies that fail to consider their needs. From a purely business perspective, this represents a major loss of revenue.
He added that improvements designed for particular disabled groups often benefit the wider community. Hamilton gave the example of the electric toothbrush, developed in the 1950s for people with mobility problems. On a show of hands, one was owned by most audience members.
He described his role as one of 20 disability ambassadors for various sectors, looking to share good practice about how firms can become more accessible for customers and employees.
Within his sector of the insurance industry, priorities include:
He also mentioned potential improvements in underwriting in areas such as diabetes, mental health, and quicker processing of medical evidence. He saw this a big opportunity for actuaries.
He concluded by mentioning major recent reports by consumer groups into the poverty premium, ethnicity premium, and money and mental health. In his view these reports show that insurers need to be more transparent about how they carry out key activities like pricing, so they can be seen to be acting in consumers’ interests.
Maz Bown described her firm Aviva’s involvement in DEI initiatives. It is a signatory to the Women in Finance charter and a member of Progress Together. And it has 6 internal communities, based on ability, gender, carers, age, ethnicity, and pride. In addition she chairs Aviva’s group for female risk and audit employees. These communities generate thought leadership for the business as a whole and help to drive change.
She talked about gender in particular. Aviva has a female CEO and CFO, which is rare in FTSE firms. However, they have not reached all their targets for female representation, and she said that it takes ‘relentless focus’ to turn targets into reality.
One motivating thought for her is that a company faces an opportunity cost by not having sufficient diversity of thought that reflects wider society. Also, progress against targets is part of senior management remuneration at Aviva.
She emphasised the importance of data in driving change. Aviva measures recruitment, retention, returners, progression, and promotions. One action they have identified is to give more support to women returning to work, as the data suggests a slower rate of career progression for them.
The final panellist Vincent Keaveny discussed the lack of socio-economic diversity in the financial services industry. There is a significant pay gap of £17,000 based on class background, which is 4 times greater than the equivalent gap for the tech industry.
He chaired the Socio-Economic Diversity Task Force set up in 2020. 30% of the UK financial services workforce are employees of firms represented on the task force. The task force agreed 4 member commitments:
The task force also established a legacy body, Progress Together, which he chairs.
The chair Kartina Tahir Thomson asked the panellists if they are yet seeing significant changes for the better. They observed that more sharing of experience would enable a better assessment of progress. It is also important to fix processes, not people. Having a culture that encourages disclosure is also key. They noted that a third of signatories to the Women in Finance Charter have met their targets.
On the current situation regarding regulation and DEI, the panel noted that the main regulators see lack of diversity as a contributing factor to financial risks. The FCA is expected to comment on socio-economic diversity later this year. Some are arguing that socio-economic background should be made a protected characteristic, and this could become a political issue.
The chair asked for the panel’s thoughts on neurodiversity. They noted that neurodivergent people should be recognised for their important contributions to social change, often based on ‘out-of-the-box’ thinking. It is important to avoid pigeon-holing people within this group as they are so diverse. Taking more account of neurodiversity could affect areas like recruitment. For example, should job adverts ask for ‘team players’? Within financial services, the GAIN network is helping to bring resources together and support career progression.
One questioner asked which skills are important for achieving the major transformation project that DEI represents. The response emphasised the importance of sharing stories, which help employers to understand what progress has been made and to address priorities for the future. It is essential for networks to be safe spaces. The process often shows the importance of softer skills and can bring out important contributions from individuals. For example, Stephen Mann recommended the motivational blogs (to add link) by IFoA Education Actuary Sally Calder.
Another question was about the distinction between equality and equity. The response explained that equity is about providing the access to resources to help people succeed, such as extra exam time for dyslexic students. Equality is about providing equal opportunities.
Asked how to engage those who are reluctant to be involved with DEI, the panel accepted that some people will not focus on this area until it affects them personally. They added that DEI needs to become a normalised conversation within an organisation. Training is also important.
One questioner asked how to address the phenomenon of loss aversion, being more concerned about potential losses than possible gains. The panel suggested that the best response is to make the business case for DEI, which can lead to culture change.
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