In a significant stride towards advancing gender equality and accommodating the changing roles of women, insurance firms have been challenged to transform their practices to address the distinct requirements of the female clientele seeking insurance policies.
Championing this call is Petunia Makgoro, the executive head of partnerships at Hollard Life Solutions, who believes that a change in perspective is not just desirable but imperative to effectively address the varied needs of women.
Makgoro said the insurance sector must evolve with an emphasis on designing products that are tailored for women. She advocated for a range of key adjustments that can bridge current gaps and provide women with enhanced empowerment in their decision-making processes regarding insurance purchases.
The executive head highlighted that the 2022 Gap Study by the Association for Saving and Investments South Africa reveals a notable difference in the gender composition of the income-earning population. With 58% being male and 42% female, there is a clear opportunity for the insurance industry to encourage more equitable gender representation.
While men and women invest in insurance products, Makgoro suggested that women approach insurance with a different perspective.
“To drive growth in the female market segment, insurance companies should recognise that women as consumers approach insurance products and make choices differently from men. While men tend to be transaction-oriented, women are more relationship-oriented,” said Makgoro.
Citing research from Swiss Re, she described women’s purchasing patterns as being more altruistic, reciprocal, and cooperative than those of men. Additionally, women are shown to display higher levels of loss aversion and less confidence when making insurance-related decisions. These distinct behavioural traits can serve as a foundation for insurance companies to reshape their strategies and foster better engagement.
Makgoro said women’s unique behavioural preferences have a substantial impact on their insurance choices. To effectively cater to these preferences, insurance providers need to craft products that resonate with female buyers.
Beyond merely presenting different benefits and exclusions, the distribution of these products must also be designed in a way that captures the attention and trust of female consumers, she said. While women business owners are exposed to many of the same risks as men, Makgoro noted that their care-giving roles often lead them to prioritise different areas of insurance coverage.
“They [women] are less likely to prioritise life insurance, they often prefer safer investment options, and are less likely to save for retirement compared with men,” she said.
“For example, in South Africa, many women have chosen to invest in funeral cover, extending its protection not only to themselves but also to their immediate and extended family members. Remarkably, approximately 60% of people purchasing funeral cover are women.”
Furthermore, Makgoro emphasised the need for a creative approach to ensure the accessibility of insurance products for women.
In a world in which women are often juggling multiple responsibilities, streamlining the insurance purchasing process becomes imperative. She stated that agents and brokers must find ways to engage women efficiently, recognising that time constraints might hinder thorough product evaluation.
“While there is an increase in insurance coverage for disability and dread diseases bought by women, their focus is generally on the here and now rather than on long-term coverage. When a broker or agent reaches out to a woman, she may not have the luxury of time to thoroughly review multiple product offerings, consider various benefits, or update her information. Therefore, there is a need to find ways to streamline the process,” Makgoro said.
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