Transforming EDI practices in UK insurance

Participants report mixed views on the effectiveness of firms’ EDI programmes and strategies. A significant portion had reservations about the strength of organisational commitment to EDI initiatives.

Transformative changes

A more comprehensive approach to the collection and analysis of EDI data is needed to design and assess effective EDI programmes.

EDI programmes will be more effective where they are more closely aligned to regulatory perspectives and purposes.

Legal considerations

General positive action by an employer in relation to an employee or group of employees is lawful if based on reasonable belief and is proportionate as to the outcomes of: reducing employees’ disadvantages in the workplace; meeting the different needs which employees might have; and increasing their participation in relation to their employment.

75% of participants consider flexible working to be advantageous to EDI. However, participants also note issues around access to opportunities which require careful consideration.

Transformative changes

Firms need to assess the potential contribution of flexible working patterns for increasing diversity and inclusion within the workforce, and in turn enhancing diversity of thought for improved decision- making and execution.

Firms need to develop strategies to ensure that inclusive working patterns do not result in operational, social or cultural exclusion of individuals.

Legal considerations

The Employment Relations (Flexible Working) Act 2023 will make notable changes to flexible working rights. The Act makes provision for the potential future introduction of the right for employees to be able to seek a flexible working arrangement from ‘day one’ of their employment.

More than half of women participants and participants from UK ethnic minority1 backgrounds other than white report that their career progression has been held back because of their gender or race, respectively. The proportion is highest for women participants from UK ethnic minority backgrounds.

Transformative changes

Firms should critically review their recruitment, retention, remuneration and promotion practices and processes to ensure that everybody is treated fairly. Steps should be taken to assess and eliminate affinity biases in decision-making and in opportunities for career development. For more free resources on this click here for the University of Nottingham’s Recruitment Toolkits.

Legal considerations

As the Equality and Human Rights Commission’s Equality Act 2010 Code of Practice (the “Code”) makes clear: “...nothing in the Equality Act 2010 prevents an employer from hiring the best person for the job, [but] it is unlawful for an employer to discriminate in any of the arrangements made to fill a vacancy, in [the] terms of employment that are offered or in any decision to refuse someone a job...”

37% of participants have seen or heard discriminatory language in the workplace.

Transformative changes

Training should address discriminatory language and the consequences of this. Senior role models should challenge the use of such language by anyone so others feel safe and protected to call out inappropriate language.

Organisational values should promote inclusive communication. Leaders must be willing to challenge the use of such language by anyone. Where leaders are willing to openly take a stand on this, others will join them.

Legal considerations

Per the Code: “Inappropriate or derogatory language in the workplace could amount to harassment if it is related to a [statutorily] protected characteristic [for example, race, sex, or sexual orientation]...”

Excessive alcohol consumption as part of workplace social or other activities is a major factor in adverse behaviour (actions or language) which excludes or ‘others’ people from marginalised groups.

Transformative changes

Leaders need to drive a cultural change to show that excessive alcohol consumption is not acceptable in any work-related activity or event.

There needs to be a focus on teambuilding, client engagement and work-related socialising in locations other than pubs and bars.

Legal considerations

Per the Code: “...employers should consider...drafting disciplinary and equality policies that refer to acceptable behaviour outside the office... and making it clear to workers what is required of them to comply with [these]...”

72% of participants would be comfortable reporting adverse behaviour. However, only 14% of participants who had actually reported such conduct perceived a satisfactory outcome.

Transformative changes

Robust and consistent internal reporting mechanisms are vital for addresssing complaints and grievances. They are also integral for advancing and sustaining EDI programmes as they hold adverse behaviour to account.

Those who raise concerns need to see that a firm has subsequently taken concrete steps to investigate, address and eliminate adverse behaviour.

Legal considerations

Per the Code: “It is important to encourage good communication between workers and managers in order to understand the underlying reasons for potential conflicts. Employers should have effective procedures in place for dealing with grievances if informal methods of resolving the issue fail.”

Participants view better training on EDI as the best way forward. Training must be evaluated to ensure palpable improvements for EDI, and reductions in adverse behaviour.

Transformative changes

Training is not a one-off panacea. It needs to be integrated with other processes and procedures (see items 1-6 above) to bring about cultural transformation.

Legal considerations

Per the Code: “It is important to encourage good communication between workers and managers in order to understand the underlying reasons for potential conflicts. Employers should have effective procedures in place for dealing with grievances if informal methods of resolving the issue fail.”