Diversity and inclusion in actuarial recruitment is an essential issue that requires attention in the actuarial profession. According to the Financial Conduct Authority (FCA), there is a significant under-representation of women and Black, Asian, and minority ethnic (BAME) individuals in senior roles within financial services. Similarly, the Society of Actuaries (SOA) and the Casualty Actuarial Society (CAS) have reported a lack of diversity in the actuarial profession.
The low percentage of diverse candidates entering the field suggests that there are barriers that prevent underrepresented groups from accessing opportunities in actuarial recruitment. This blog post will explore the current state of actuarial recruitment, the barriers to diversity and inclusion, and strategies to overcome them. Join me as we delve deeper into this topic and explore ways to break down these barriers!
The Current State Of Actuarial Recruitment:
Despite efforts to promote diversity and inclusion in the actuarial profession, the industry continues to endure a lack of diversity in its workforce. According to the Society of Actuaries (SOA), only 22% of new actuarial associates hired in North America in 2020 were women, and only 11% were Black, Indigenous, or People of Color (BIPOC). This lack of diversity is not unique to the actuarial profession, as it is also common in other industries that require strong quantitative skills.
The actuarial profession in India also faces a significant lack of diversity in its workforce. Despite efforts to promote diversity and inclusion, the industry struggles to attract and retain underrepresented groups. According to the Actuarial Society of India, only a limited percentage of its members come from diverse backgrounds, with women and BIPOC individuals being particularly underrepresented.
This lack of diversity has implications for the industry’s ability to address emerging risks and challenges, limit inequalities, and effectively serve a diverse customer base. To address this issue, India’s actuarial sector must prioritize diversity and inclusion in its recruitment efforts. It includes creating targeted initiatives to attract and retain underrepresented groups, providing mentorship and networking opportunities, and fostering a culture of inclusion. By doing so, the industry can better serve its customers and remain a competitive and relevant field for years to come in India.
The Barriers to Diversity and Inclusion in Actuarial Recruitment:
There are many barriers to diversity and inclusion in actuarial recruitment, contributing to the lack of representation of women, BIPOC individuals, and other underrepresented groups in the industry. Let’s look at some of the barriers.
#1 Lack Of Awareness & Understanding: Many individuals from underrepresented groups may not be aware of the actuarial profession, its career prospects, or the skills required for success in the field. Additionally, this profession may not be well-known or understood in some communities, which limits interest and participation.
#2 Limited Recruitment Efforts: Actuarial firms and organizations may not actively recruit from diverse pools of candidates or may rely on traditional recruitment methods that are ineffective in reaching underrepresented groups.
#3 Bias In The Selection Process: Unconscious bias in recruitment and hiring can limit opportunities for underrepresented candidates. It includes assumptions about a candidate’s qualifications or fit for the role based on factors like gender, race, ethnicity, or socio-economic background.
#4 Lack Of Diversity In Leadership & Mentorship: A lack of diversity in leadership and mentorship can limit opportunities for underrepresented groups and contribute to a lack of diversity in the industry. Without role models and mentors who can offer guidance and support, individuals from underrepresented groups may not feel supported or encouraged to pursue careers in actuarial science.
#5 Limited Access To Resources: Underrepresented groups may face additional barriers, such as limited access to educational resources or financial support for exam fees and professional development.
