Young Women in Insurance in West Africa - Challenges to Breaking the Proverbial Glass Ceiling to getting to the Top
written by Sheila Wristberg
Dec 9, 2022
Young Women in Insurance in West Africa
Challenges to Breaking the Proverbial Glass Ceiling to getting to the Top
There are numerous well-known female monarchs, chiefs, and leaders in African history. Prior to the onset of colonization and its associated patriarchal practices, women in West Africa were not historically excluded from leadership roles. Many West African tribes, such as the Ashantis of Ghana and the Yorubas of Nigeria, have traditionally recognized the importance of women and had women exercise power as queen mothers, tribe elders, and family matriarchs.
In the early colonial period, West African women also contributed to the business landscape by engaging in entrepreneurship. In Ghana, notable female merchants dominated the gold and ivory trades. As females had authority in the communities' political, economic, social, and religious affairs, female leadership was not an alien practice in pre-colonial West Africa. This authority wielded by West African women was tested and reduced to its most basic form during the colonial era, when their avenues of power were removed, resulting in the now-endless struggle for gender equity and parity.
Historical representation of women in the global workforce
However, the past is not always a predictor of the future, as the role of women in West Africa during the colonial era and now has changed. Women have historically been grossly underrepresented in certain industries in the corporate, post-colonial world, particularly in Africa, parts of Southeast Asia, and the Middle East. Women accounted for 3.9 billion people in 2021, accounting for 49.58% of the global population and 50.1% of Africa's population (583 million people). According to World Bank data, up to 60% of this population is in the labor force (aged 15 and older).
Women must have equal access to political power and leadership roles by 2030 to achieve the Sustainable Development Goals (SDGs). Data show that women are underrepresented at all levels of decision-making around the world, and economic, social and political equality remains a long way off. Women make up a small percentage of the corporate world in almost every industry, including finance, extractive services, education, politics, military, and medicine. In the insurance industry, the situation is no different.
According to a McKinsey study on leadership in the African private sector conducted in 2016, the African region has more women in executive committees, CEO and board roles than the global average. However, the numbers varied by region and industry, with more men than women occupying such roles in industries dominated by men, such as the extractive industries. Despite these figures, women were still underrepresented at every level of the corporate ladder, with the numbers decreasing as the roles became more senior. Only 5% of female professionals make it to top C-suite roles. Furthermore, while the number of women in leadership positions has increased over the past decades, the level of influence and power has not increased in the same way- many of the roles occupied by senior staff were internal facing roles (such as HR and Risk) rather than client facing roles (such as marketing and other technical roles) from which CEOs typically get promoted.
Global insurance workforce at a glance
The insurance industry is one of the world's largest industries, with a global market value that exceeds the gross domestic product (GDP) of a number of nations except for the United States and China (in 2021). In 2020, the insurance industry employed an estimated 2.86 million people in the United States alone with 60% of them being women. Data culled from the US Bureau of Labour Statistics shows that since 27 the presence of women in the insurance industry has outstripped that of men, which is at contrast to the US national average of 46.8% female occupied positions. The industry employes loss adjusters, actuaries, human resource managers, accountants, marketers, agents, brokers, and data analysts. Women are however underrepresented in management roles in globally and in West Africa's insurance industry, as they are in many other industries around the world. The World Economic Forum states that women have a 28% chance of reaching leadership positions in all industries globally.
women_in_insurance_2018.pdf
Table 1 below shows a statistics of women in leadership roles ( Managing Directors and CEOs) of insurance companies and brokerage firms in Ghana.
Women Leadership in Insurance in Ghana
Women on Boards in West Africa
The number of women on boards in Africa is on a record low. According to a survey by the Council for Advancement of Women in Africa (CASAWA) and collective action partner, The PENDANTS in four African nations: Botswana, Ghana, Kenya, and Nigeria, only about 20% of board members at listed firms are women. This number is much lower for small and medium-sized businesses (SMEs). According to the findings, the majority of African countries still have a long way to go before achieving gender equality on corporate boards. Given that women continue to be underrepresented in managerial roles—only 25% of senior management positions are held by women—this finding is not shocking.
Regional overview of women in the C-suite and on Boards
Research shows that women are more likely to serve on audit and risk committees for publicly traded companies than on strategy and transformation committees, which are more strategic decision-making bodies. This finding suggests that women are more likely to be assigned to committees that deal with risk mitigation and financial performance auditing, rather than committees that are more strategic and focused on growth. This is also true for SMEs, where women are far more likely to serve on finance and audit committees than marketing and strategy committees.
Another Deloitte study on the global perspective of women in the boardroom across Africa found similar trends, with women more likely to be on audit and risk committees of boards than nomination, compensation, and governance committees. The lack of women on the previous two committees suggests that boards will continue to lack diversity in the nomination process, while the gender pay gap is also less likely to be addressed and bridged.
(gx-risk-wob-africa-180222.pdf)
Presence of Women on Board Committees
Other findings from the Deloitte study reveals that the average age of men is higher than that of women on boards however the average age of female chairpersons is higher than that of male chairpersons. Additionally, consumer business, manufacturing and financial services were industries with a high number of women on boards.
gx-risk-wob-africa-180222.pdf
The above data does not, however, imply that there are no opportunities for women leadership in insurance in West Africa. Indeed, there have been positive changes in the past decades and female insurance executives have broken through the proverbial glass ceiling to reach — and stay at — the top. When it comes to rising above their peers, women in insurance face unique challenges that men do not. The paper shed light on some of the challenges that young women in West Africa face when attempting to advance to leadership positions in the insurance industry, as well as what can be done to help women continue to defy expectations and push the envelope.
Barriers to Women in Leadership
For the African continent to reach its full potential and ensure quick progress to the next stage of development, it is essential to remove obstacles for women in positions of leadership and power. A region's capacity for strength and human capital is limited if only half of its citizens are empowered. The senior hierarchies of insurance businesses continue to underutilize the talent pool and skill sets of women. The general involvement and empowerment at all levels of the business, from entry level to middle management to senior management roles, executive roles, the boardroom, insurance associations, and supervisory authorities, is consequently tied to the future development of insurance in West Africa. The participation of women significantly declines as one moves up the business and political ladder, despite attempts by many corporate organisations and countries.
Although laudable, the percentage of women on boards in Africa is higher than the global average, but is still below parity. In fact, in terms of regional participation of women on boards of publicly traded firms, the African continent ranks in third (after the US and Europe). The percentages may be similar for the industry, even though there isn't specific data on the insurance market in West Africa to confirm or deny the broad premise. Numerous studies on the representation of women on boards and in senior positions have been done in the insurance markets in the US and Europe, but the same is not the case in West Africa. Increasing women’ participation in leadership in the insurance industry begins with researching and understanding the trends and patterns of growth (or decline), if any, over the past decades. and working towards a resolution.
Women's education in many West African nations has improved over time, with rates of adult female literacy in Cape Verde, Ghana, Nigeria, and Togo in 2018 being 82%, 74%, 53%, and 51%, respectively. According to the same study's findings, female literacy rates were 14%, 22%, 23%, and 26% in Chad, Guinea, Niger, and Mali, respectively. Nonetheless, a lack of education or understanding cannot be the cause of the absence of women in leadership positions in West Africa since some regions have high female literacy rates.
The above statistics show low numbers of females in leadership globally, in Africa and within the insurance industry reinforcing the importance of accelerating support for females in leadership.
What is causing the leadership gap in insurance?
Although there are a number of obstacles in the way of women's advancement in the workplace, there is not necessarily a large barrier to admission for women in the insurance sector. As they move up the corporate ladder, women encounter increased discrimination and isolation.
According to research, the gender leadership gap is caused by historical, multiple, and deeply ingrained attitudes and perceptions shared by both genders, making it an endemic problem that needs to be addressed on many different levels. Four basic pillars—structural impediments, institutional attitudes, individual mindsets, and lifestyle decisions—support the "glass ceiling."
Structural/Systemic barriers
Structural barriers are impediments that collectively have a disproportionately negative impact on a group and continue or maintain glaring gaps in outcomes. These obstacles have a number of additional roots. The obstacles may take the form of laws, customs, or norms that systematically disadvantage one group while benefiting another.
Professional men are asked to join existing networks of power and encouraged to do so, whereas professional women have limited access to these networks. Deals are typically negotiated on the golf course or over a handshake in the insurance sector, which has historically been considered an "old boys' club" with women historically taking on more administrative positions. One is also expected to be a member of “the club” in order to advance in the ranks.
Women typically do not have access to important, informal networks, including social clubs, golf club memberships and even happy hours, which excludes them from essential promotion opportunities.
In cases where women may be interested in such engagements, gatekeepers may assume they will not be, or gatekeepers may be uncomfortable with introducing a different demographic into their inner space. This creates a structural barrier that prevents women from being hired, given leadership positions, and promoted, especially in older, well-established businesses that are firmly rooted in the past.
Numerous methods of fostering business relationships and teamwork, such as country club memberships, are typically elite and out of the price range of the average junior executive from West Africa hoping to advance her career. Many young, female executives may focus only on the technical aspects of their jobs without the assistance of an insider who is familiar with organizational dynamics or politics, neglecting the crucial network and rapport building that generates opportunities, advocates, and allies necessary for promotions and scaling their careers.
Women are held back professionally by sexism, whether it is covert or overt, which hinders their development as leaders. This includes, but is not limited to, sexual harassment, unfair working conditions, and unequal pay. To eliminate these structural hurdles, the societal systems that give men an advantage over women in the workplace should be completely dismantled.
In West Africa, in addition to organizational context systemic constraints, societal structural barriers also exist because women are expected to be the primary home caretakers. Whilst that might not be a problem, everyone has a limited supply of time and energy. Women's capacity to pursue professional objectives and leadership positions may be constrained by their parental duties. Without the benefit of an established domestic support system, women must choose between pursuing a successful job and maintaining a happy household. Women experience significant mental, emotional, and physical stress as a result of the overlapping personal and professional obligations when neither the home nor the workplace provide adequate support.
Due to the burden of successfully juggling the two roles, it is usual for women to postpone actively pursuing an upward professional trajectory during their childbearing years. As a result, some women fall off the corporate ladder for a while. Many women in successful senior management roles in the United States chose to leave their jobs owing to the physical and mental strain of their dual roles, particularly during the covid era when many women had to balance full-time motherhood and home responsibilities with business tasks. A lot of people will not reach the top rungs of the corporate ladder, even though others may return to corporate job at which time their possibilities to advance are more likely to be constrained. Whilst these systemic barriers may not be deliberate to affect anyone negatively, the impact on the involvement of women in leadership is still dire and needs to be addressed comprehensively.
Institutional Mindsets
What your employees believe determines what your company becomes.
According to research of mindset theory, people's mindsets and beliefs affect their motivations, engagement, and performance at work, which in turn affects the culture of the business. Therefore, expanding mindset research from the individual to the organizational level in the workplace context is crucial to improving workplace outcomes and establishing more ethical and inclusive company cultures.
Due to the cultural reinforcement of gender norms, negative instructional mindsets such as gender stereotypes and prejudices are quite common in the West African corporate context. Diversity, inclusiveness, and equal opportunities are emphasized in the ideal working environment, and all employees are expected to get the same degree of respect, assistance, and opportunities regardless of their gender, ethnicity, race, or religion. However, there may be some level of bias at work because management and employees both have preconceived attitudes and notions about gender. Gender-based institutional biases include hiring women for clerical jobs on the grounds that they are more organized, giving women writing-intensive jobs (like serving as secretaries on boards and committees), giving men the opportunity to give presentations, and excluding women from companies' digital transformation initiatives on the grounds that they are not tech-savvy.
These gendered stereotypes pervade volunteer positions as well, when women are expected to handle the "soft work" such as cuisine, protocol, and décor while males handle the sound and presentations. While these actions may appear innocent at first look, they serve to perpetuate gender stereotypes in the workplace and the idea that men and women perform their responsibilities differently. The implicit belief within the organization will be to support more males into leadership roles since they will be viewed as more successful and capable leaders to the extent that the leadership role in West Africa is masculinized. When an employee behaves in a way or holds beliefs that are inconsistent with the organization's established standard of behavior regarded to be necessary to succeed in that function, this is known as incongruity inside the company.
Leadership is frequently equated with traits like assertiveness, dominance, ambition, direction, competition, independence, and self-reliance in the business environment of West Africa and, consequently, the insurance sector. When women are thrust into leadership roles, these character traits—which are socially deemed to be masculine—cause friction because on the one hand, they may be required to display them, even though it may not be how they naturally lead. Women who display these abilities, which are admired in men and are seen as leadership qualities, on the other hand, are discouraged and branded as anti-feminine, confrontational, or difficult to deal with. The vocabulary that is used to describe men with stereotypical masculine personalities is unsavory when it involves women since they are perceived as acting out of character from what is considered ‘normal’ female behavior. Women will be viewed as insensitive and harsh, but men may be seen as direct and forthright.
The reverse is seen where women lead with their femininity, they are sometimes met with veiled criticisms such as “lacking gravitas” or being “soft”. The corporate world and corporate structure were designed from the start for the "typical, white, male." The typical West African woman is therefore by her very nature and essence several steps removed from being the ideal poster person that the corporate institution was set up to embrace, support, promote and trust with decision making and corporate direction.
According to a Harvard Business Review article, women face four workplace paradoxes. They are expected to be:
Therefore, if women are to go farther in their leadership careers, they must establish a delicate balance between two conflicting sets of expectations. Recognizing that there are double standards of expectations and that they have existed for hundreds of years because of socialization based on gender norms is the first step in coping with them. The next phase is to build a leadership style that focuses on striking a balance that maintains control while feeling confident in one's own skin, rather than on trying to fit in and feeling uncomfortable while doing so.
Even though many businesses have non-discrimination and inclusion policies, workplaces will not reach their gender parity objectives until organizational narratives and mindsets accept the concept of the Female, African leader as the new normal.
This persona is multifaceted and has a strong sense of direction while also possessing a healthy balance of authority and empathy.
Personal mindsets
Leadership is a by-product of mindset. You become what you believe. People are the byproduct of the interaction between nature and nurture during their development and experiences. Beyond institutional and organizational constraints, women adopt mindsets and beliefs that impede their ascent to leadership positions. According to data, women who advance to mid- and senior-level management positions and senior level positions may choose to remain there rather than moving up to the c-suite. There may be a number of reasons for this choice, but they may include—without being limited to—deciding to prioritize personal and family obligations over work, wanting to steer clear of the perceived office politics that come with promotions in many workplaces, and being less assertive when asking for promotions.
A study on the factors that prevent women from being promoted into leadership positions revealed that, despite society's higher expectations for women than for men, women also strive for self-perfection before applying for jobs or undertaking activities that can lead to upward career mobility. This is hardly surprising considering that boys are pushed to take risks while girls are constantly told to be flawless. Therefore, many women are prevented from taking on challenges and risks even before society does because of the self-defeating internal conversation going on in their heads.
Women's implicit prejudices and unconscious assumptions about what a leader should look like or who succeeds them in leadership negatively impact their self-worth and subsequent performance to advance in the leadership ranks. Many of the women working in the insurance sector today had preconceived ideas of what a leader looks like from their childhood concepts of marriage. As a result, they develop an image of the ideal leader in their thoughts. For instance, when the term "CEO" is used, most people—including women—immediately picture a man dressed in a business suit. When a secretary is described, however, people instinctively picture a woman wearing a skirt. There are still many female insurance commissioners, female CEOs and C-suite executives of insurance companies, brokerages, and agencies, female board members and board chairpersons, and senior managers within insurance companies, despite the limited number of inspirational female leaders for women to look up to. When discussing insurance leaders in West Africa, these persons need to come to mind first.
Ambition is viewed as being bad for women and a characteristic of men. Many women lack self-promotional skills, particularly in the West African culture where modesty is valued. In the business environment, people advance by communicating their leadership aspirations to superiors and taking ownership of completed work—two things that many women can find challenging. As a result, individuals are at a disadvantage at work since they are not given the chances, resources, or recognition they need to advance. According to research, women prefer to work in the private sector, startups, and smaller businesses where there are more women owners and leaders than in larger, more established corporations because they believe they will receive more support, have access to more female mentors, role models, and leadership support, all of which will help them advance their careers.
Lifestyle Choices
All lifestyle decisions are respectable, but not all of them foster an environment where women may grow in their careers. These choices include those regarding work-life balance, business size, family priorities, educational opportunities, and even work departments. A woman's prospects of promotion may be impacted for a year or two after returning to work following maternity leave, even if she puts in the same amount of time and effort. Women who work longer hours are also more likely to advance in their careers.
This is because it is assumed that a mother will choose her family and child before her career. When other applicants are preferred over women with children for leadership positions that include travel, late-night work, or promotions, the latter group may be informed that they are better qualified. Some businesses will not recruit young women under a specific age because they think it's likely they will become pregnant and need to take time off work. These obstacles could be subtle and not explicitly acknowledged by businesses, but they nonetheless exist at all levels of our institutions.
The influence of lifestyle choices also extends to volunteer work within firms, where women frequently take on time-consuming tasks that do not generate income or quantifiable value for the company, such as serving food at office parties and arranging them. Contrarily, men volunteer for more visible and quantifiable tasks like presentations and industry reports, which puts them in a better position to translate their volunteer work into prospects for promotion.
Despite the fact that more workplaces than ever are talking about promoting work-life balance, working from home or taking time off (closing on time or taking annual leave) have mostly negative consequences because many businesses have not yet adapted to flexible working arrangements and employees who are not constantly overworked. Work-life balance then turns into a principle that, while on paper promoted, is generally disliked and even punished. Insurance companies were compelled to implement working from home policies, flexi-working programs, and teleconferencing during the Covid-19 pandemic and in the months that followed what became the new norm. Many employees welcomed these initiatives because they allowed them to spend fewer hours traveling to and from work. However, many of these flexible working options have been reversed as many businesses have returned to their previous routines following the pandemic, adding to the strain on women to balance their obligations at home and at work. In order to introduce innovation to the sector and show the same degree of care for employees as was shown during the pandemic, the industry must not pull down on the resilience exhibited during those times to assist personnel working from home and to use electronic channels to reach clients. If they are confident that it won't have an impact on their chances of progress in the future, many women would benefit from flexible work arrangements and choose those possibilities.
Given all these obstacles to female leadership in West Africa, one might wonder why the insurance sector should care about encouraging women to enter the industry at entry-level positions and ascend to leadership roles as their careers progress and how to quicken their upward career trajectory.
← Back
