More brokers willing to risk threat of not acknowledging diversity

Three-quarters of brokers believe their organizations must address diversity to be a successful business. Yet, this number is waning — from 91% in 2022 to 84% in 2023, and to 75% in 2024, according to a recent Canadian Underwriter survey.  

CU‘s 2024 Brokerage DEI survey collected responses from 291 brokers and was made possible with the support of Sovereign Insurance.

Responses highlighted in this article represent those at firms with no diversity in senior leadership positions (23%), some diversity in senior leadership (48%) and over 50% diversity in senior leadership positions (16%). It excludes those from firms that are leading in diversity at the senior leadership level (13%).

Of those who acknowledge the threat of not addressing diversity at their organizations, their top concerns include: 

• Losing access to the best new talent (35%) 
• A tie between losing good employees (30%) and a lack diverse perspectives or a strong team (30%) 
• Risk of homogeneity and  group think (18%) 

“We do not have this problem but this is a danger that could happen if we were not a diverse brokerage,” says one boomer respondent in rural western Canada.  

But those with no diversity in senior leadership at their organizations (25%) are most likely to believe their businesses can be successful without addressing diversity — a 9% increase from 2023, and a 16% rise from 2022.  

“Hire the best people for the role and a business will be successful. Success isn’t achieved by checking diversity boxes,” says one Gen X broker owner with no diversity in leadership their firm.  

Three in ten brokers (29%) say they’re very or somewhat concerned about the risks posed by a lack of diversity in their organizations — a level of concern that’s stayed stable since last year. However, 34% say they’re not very concerned, and a further 37% say they’re not at all concerned.  

“Although we are a diverse company, diversity, equity and inclusion must be always in mind when building and expanding the corporate culture,” says a boomer respondent in a large Ontario city. 

And, responding to a new question in this year’s research, half of brokers (52%) agree they are personally threatened if their organizations do not address diversity. Brokers cite four top concerns:  

• Poor workplace culture or environment (28%) 
• Organizational reputation damages (17%) 
• Professional development — limited access to mentorship and promotions (13%) 
• Personal wellbeing — increased stress, workplace safety, etc. (9%) 

“Our labour pool will shrink rapidly if we don’t embrace diversity,” says one broker owner in Ontario. 

Yet, another 48% believe they can have a great career without ever addressing diversity. 

“We don’t have threats as we are always open to anyone,” says one owner of a brokerage with no diversity in leadership. 

As a millennial broker in a large city puts it: “We will create opportunities for the right people.” 

Yet one account manager at a large Ontario brokerage sees diverse hiring as a welcomed chance to grow the labour pool. “Diversity does not pose a threat to me but represents an opportunity to further mentor, encourage and train more diverse talent.” 

On the other hand, one male millennial broker acknowledges that “having relationships with a diverse group of people improves the richness of my life. However, as stated before, we do not need to promote diversity for the sake of diversity.” 

 

Feature image by iStock.com/AnVr