Empowering women through insurance
For the second article in our series focusing on women’s empowerment, we interviewed Susan K. Neely, President and CEO of the American Council of Life Insurers (ACLI). Neely is also Vice President of the Global Federation of Insurance Associations and was recently named to the B20 Financial & Infrastructure Task Force.
ACLI’s mission is to help families live better lives by achieving financial security and certainty. ACLI’s member companies represent 95 percent of industry assets and provide financial security products and services to 90 million families.
MiN: What is the B20 Special Initiative on Women’s Empowerment and why does it matter?
Susan: The B20 Special Initiative on Women’s Empowerment brings the business community together to foster the empowerment of women across all economic sectors. As a representative of the life insurance industry, I am keenly interested in the financial inclusion and the economic empowerment of women.
Financial inclusion is a societal challenge that knows no borders. It is also an issue that impacts women in unique ways. In the United States during the pandemic alone, three out of four women have said the crisis had a negative impact on how long they could live off their retirement savings. The United Nations has warned of losing “a generation or more of gains” in gender equality and women’s rights due to the socio-economic impact of the pandemic.
As the life insurance industry, we have a huge opportunity to empower women during a major global crisis and a time of great need. The B20 Special Initiative on Women’s Empowerment is a critical platform for the business community to present its recommendations to policymakers and governments at the highest levels.
MiN: Why does this matter for the insurance industry?
Susan: Helping people care for themselves and their loved ones is the life insurance industry’s most critical mission. Given today's economic uncertainties, the financial and retirement security our products provide has never been more important. COVID exposed savings gaps that already existed, and we have a role in solving these global challenges.
Life insurers provide jobs, protect families, and invest in economies around the world. In the United States alone, 90 million American families count on life insurers' products for protection, long-term savings, and a guarantee of lifetime income when it's time to retire.
Providing a gateway of access should be of utmost concern to us, and it is.
The first step in solving a problem is having it broadly acknowledged and discussed. I’m pleased that, for the first time, the Italian B20 has added the concept of “uninsured” along with “unbanked” to its policy recommendations. Italy is a leader on many gender equity issues. By elevating these issues through the B20 Special Initiative on Women’s Empowerment, we can share experiences, offer recommendations, while at the same time advocating at the highest levels of government.
MiN: In your view, what are the key issues that people should be aware of when focusing on women empowerment as a pillar?
Susan: I would categorise the issues in two ways: access and confidence.
Access is about making sure women can take advantage of financial protection tools that are out there. Retirement savings is one example where access is critical. Global trends towards longevity and retirement disparity disproportionately impact women. Even before the economic calamity caused by COVID-19, many American women were headed toward a treacherous retirement cliff. Through no fault of their own, many approaching traditional retirement age face financial challenges. I explored this in a Yahoo Finance panel with representatives of the Aspen Institute and the Bipartisan Policy Council.
As a business community, we can advocate for policies that encourage greater access to financial protection products that help women — like annuities, paid leave products, and retirement security savings products. We can address regulations that undermine the ability of women to access insurance products or participate in the distribution of family wealth upon death or divorce of a male spouse.
Another area of global concern is financial confidence. A recent international study by the Global Financial Literacy Excellence Center measured the confidence of women when it comes to financial literacy. It showed women — when given the option — would choose “I don’t know” to questions measuring financial knowledge. But when you take the “I don’t know” option away, they actually respond correctly. Similarly, research initiated by the American Council of Life Insurers found that 73% of working women in the U.S. are engaged in managing their long-term finances, but only 57% of women feel confident about their personal finance, savings, and investments. I want that to be 100%.
So how do we, as business leaders, inspire financial confidence? A first step is to double down on our commitment to diversity in corporate leadership, front line sales and customer engagement teams. When we have more diverse teams, we better serve underrepresented communities.
MiN: Across the world, women are much less likely than men to be economically active. In your view, how can the inclusive insurance ecosystem help to eliminate barriers to women’s full inclusion in the workplace for an equal participation in the economy?
Susan: We have to begin by taking a holistic look at the gaps that exist. I’ll give you one example. Globally, 197 million fewer women than men own mobile phones, which have become a primary entry point to the financial ecosystem. Financial services are a core enabler for self-employment, enterprise growth, and asset or wealth creation for households. Improving digital capability can serve as a force multiplier for advancing economic empowerment, especially among women.
We need to look at all the ways in which the business community can lead, including investments in digital infrastructure. The B20 Special Initiative on Women’s Empowerment provides this cross-cutting chance to look at the issue of empowerment holistically.