Diversity matters in insurance pricing because teams with a wider mix of backgrounds are better placed to challenge assumptions, spot bias in models and build fairer products. Many pricing teams are narrow because the routes in are narrow. The answer is to widen the gate without lowering the bar: select for aptitude, then train properly.
Insurance is changing, but pricing, data and analytics teams are still catching up on diversity, equity and inclusion. At FlarePeople we see it as a performance issue as much as a representation one. Here's why, what gets in the way, and what insurers can do about it.
Why are insurance pricing teams often not diverse?
Because the routes in are too narrow. Pricing teams set premiums, model risk and shape commercial outcomes, which makes them exactly the kind of place STEM talent should thrive. The academic background is often right. The pathways tend to favour very specific degrees, certain work experience or a traditional career path, so plenty of capable people never get through the door.
The barriers we see most often:
Low gender diversity in technical roles, especially among mid-career and returning professionals
Limited access for high-potential STEM talent without direct industry experience
Barriers for ex-forces and career changers whose skills transfer but whose CVs don't look traditional
Hiring processes built on narrow ideas of who is qualified
Few visible role models from different backgrounds in pricing teams
The answer isn't lowering standards. It's widening the gate: find the right people, train them in the right skills, and support them into roles where they can make a difference.
Why does diversity matter to pricing performance?
Because pricing is built on assumptions, and a narrow team is more likely to share the same ones. In our view, a wider mix of backgrounds helps in four ways:
Better decisions: different perspectives help challenge modelling assumptions and expose potential bias
Resilience: inclusive teams bring broader thinking to problems
Fair outcomes: fair pricing and product governance are under close regulatory scrutiny, and diverse thinking can help teams spot fairness issues early
A bigger talent pool: broader access to pricing careers widens the pool you can hire from
For the figures on women in insurance specifically, see Women in insurance pricing.
How does the Pathfinders™ Academy widen the route in?
By recruiting from groups traditional hiring tends to overlook, and selecting on potential. We recruit STEM graduates, ex-armed forces veterans and career returners and changers, selected for aptitude and attitude rather than a particular CV. Our diversity and inclusion page sets out our approach.
Everyone then goes through the same training. The Pathfinders™ Academy runs for 10 weeks, mostly online, through modules you work through at your own pace, live training and webinars with the pricing team, with some in-person days. Pathfinders are deployed into client pricing teams on an initial contract, typically 24 months, with the option to take them on permanently. They make an impact from day one, and every Pathfinder we've trained is now working as a pricing analyst with a UK insurer.
What can insurers do now to build more diverse pricing teams?
Five practical steps:
Look at diversity beyond gender, including background and career route.
Check recruitment processes for hidden barriers, such as degree filters or years-in-role requirements.
Open alternative entry routes, such as returner programmes or train-to-hire models.
Track the effect of a more diverse team on decisions and performance.
Use routes built for this, such as the Pathfinders™ Academy, so inclusion is part of how you hire rather than an add-on. How it works explains ours.
Build a more inclusive pricing team
If you lead a pricing team and want to talk through a more inclusive hiring approach, book a call with Anthony.
If you're a STEM graduate, ex-forces veteran, or career returner or changer, register your interest with your details and a CV. We will be in touch if you are a good fit for our next Academy.
Frequently asked questions
Why does diversity matter in insurance pricing?
In our view, teams with a wider mix of backgrounds are better at challenging assumptions, spotting bias in models and building fairer products, and they give insurers a bigger pool of talent to hire from.
Why are pricing teams often not diverse?
The routes in are narrow. Hiring often favours specific degrees, set work experience or a traditional career path, which shuts out capable STEM graduates, ex-forces veterans and career changers.
Does widening access mean lowering standards?
No. The aim is to widen the gate, not lower the bar: select people for aptitude and attitude, then train everyone to the same standard.
How does FlarePeople help insurers build more diverse pricing teams?
We recruit STEM graduates, ex-armed forces veterans, and career returners and changers, selected for aptitude and attitude, train them through the 10-week Pathfinders™ Academy, and deploy them into client pricing teams.