Female-led Insurtechs are bringing diversity and innovation to the industry
According to a report by McKinsey, gender-diverse companies are 15% more likely to outperform their peers, and ethnic-diverse companies are 35% more likely to do the same. Female-led Insurtechs bring a fresh perspective and new ideas to the industry, and they are more likely to address underserved markets, such as women and minorities. For example, Surround Insurance, co-founded by Kate Terry, provides an array of products and services that cater to the new and mobile lifestyles of generation Z., while Policygenius, founded by Jennifer Fitzgerald, is now one of the leading insurtechs in the US. These innovative solutions are helping to change the way insurance products are designed and marketed.
Female-led Insurtechs are closing the gender gap in the insurance industry
The insurance industry has traditionally been male-dominated, with women making up only 12% of board members globally. However, female-led Insurtechs are helping to close the gender gap by providing more opportunities for women in the industry. By offering a platform for women to showcase their skills and ideas, female-led Insurtechs are empowering women and encouraging them to pursue leadership positions in the industry. This is not only good for women, but it is also good for the industry, as it helps to bring a diversity of perspectives to the table.
Female-Led Insurtechs Fight Against Gender Funding Gap in Venture Capital
However, while female-led Insurtechs are making strides in closing the gender gap in the insurance industry, they still face significant challenges when it comes to obtaining venture capital. In fact, according to a study by the German development bank KfW, only 5% of VC deals in Germany go to all-female start-up teams. On average, women-led innovative, growth-oriented start-ups receive less venture capital than companies led by men, with 91% of every euro of VC investment in Germany in 2021 going to all-male founding teams. Even in mixed teams, women receive only 7% of VC investment. The study highlights the pronounced gender-funding gap in the German VC market, which is attributed to unconscious biases and evolved networks in the still male-dominated VC ecosystem.
Anna Bojic, Co-Founder of insurtech start-up, Miss Moneypenney Technologies, asserts that investors can enhance their investment portfolios by paying closer attention to pitches from female founders. In fact, “such entrepreneurs tend to utilize fewer vacuous superlatives and power poses in their presentations. Failure to recognize the distinctive markers of potential in the language of female entrepreneurs not only hinders social progress but also causes investors to miss out on significant opportunities.”
In summary, female-led Insurtechs are contributing to the transformation of the insurance industry through their unique perspectives, innovative solutions, and increasing investment. These companies are not only revolutionizing the design and marketing of insurance products, but also promoting greater gender diversity in a historically male-dominated field. While female-led Insurtechs are gaining the financial backing needed to grow and expand their impact, the persistent funding gap for female-led ventures remains a challenge that needs to be addressed. As the industry continues to evolve and adapt to changing customer needs and technological advancements, the contributions of female-led Insurtechs will undoubtedly play a critical role in shaping its future trajectory.
