The insurance advice sector in New Zealand is undergoing significant transformation, driven by regulatory changes, evolving customer expectations, and technological disruption. Amid these shifts, an important question persists: Does diversity and inclusion (D&I) still matter?
The answer is unequivocally yes - D&I is not just a social responsibility but a strategic imperative for broking firms.
New Zealand’s population is increasingly diverse, with Māori, Pacific, Asian, and other communities forming a significant part of the market. There’s evidence that 66% of insurance customers prefer to buy from companies that visibly commit to D&I and 58% are more likely to trust such businesses.
At a time when companies are under extraordinary pressure to maintain financial performance while navigating a rapidly changing business landscape, diversity matters more than ever.
The benefits of creating a diverse team are accepted to be an increased level of innovation and creativity, improved equity across employees, improved employee engagement, a reduction in group think and an expanded pool of knowledge and skills to draw upon. In a 2023 report, McKinsey found that internationally, leadership teams with at least one-third diverse representation outperform their peers financially by up to 39%!
The insurance industry also faces a looming talent gap, with over half of the workforce expected to retire in the next 15 years. Inclusive workplaces attract younger, diverse talent and improve retention, and nearly half of millennials prefer to work for companies committed to D&I. In an industry where only a fifth of roles are made up of Maori, Pacific, Asian and female candidates, it seems that Insurers are ahead of broking firms in their approach to D&I initiatives, and in a limited talent pool, broking firms need to think carefully about their future people needs for their businesses.
While most NZ businesses are aware of D&I and its potential benefits, only two-thirds have formal policies in place, suggesting that forward-thinking broking firms could access the best talent in the market ahead of their competitors, not to mention the ability to outperform their peers in emerging markets.
For insurance advice firms in New Zealand, diversity and inclusion are not optional - they are essential for customer trust, competitive advantage, and sustainable growth. As demographic shifts accelerate and regulatory expectations evolve, firms that embrace D&I will be better positioned to thrive.
So, the question is, what is your firm doing to set itself up for the future?
