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Insuring Women’s Futures, the 6 Moments that Matter

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Insuring Women’s Futures is a voluntary, market-led programme established under the Chartered Insurance Institute to improve women’s financial resilience. It brings together a cross-section of business leaders, experts and influencers drawn from policy, regulation, academia and the third sector to support making lasting change. For the past three years, these contributors have shared their insights, experiences and expertise.

The result is a series of ambitious, practical Manifesto recommendations.

Insuring Women’s Futures has identified ten overarching recommendations where interventions can be made to improve financial resilience for women and wider society in the UK. The recommendations take into account how life in the UK is changing and the implications for all of our financial resilience, now and in the future. The interventions combine policy and practice and are centred on where the most impact can be made, targeting Moments that Matter across women’s financial life journeys.

Recommended interventions

  • Inspiring young women to own their financial future
  • Pensions equality in the workplace
  • Equal pension rights for those on low pay
  • Workplace flexibility and financial wellbeing to address the impact of part-time on pay and pensions
  • Financial engagement and wellbeing strategies that reflect women’s whole life journeys
  • Insurance and financial services’ role in supporting financial futures
  • Fair pensions outcomes for those in relationships and for break ups
  • Pensions for carers and a national conversation about caring
  • Gender-disaggregated data and use in policy and practice
  • Female Financial Resilience Forum

These Moments that Matter impact women across the life stages from girls to elderly women according to individual life journeys. For example, becoming a mother or caring for an elderly relative have different consequences depending on whether and how women are working, studying or are in good or poor health.

The 6 Moments that Matter

  1. Growing up, studying and re-qualifying
  2. Entering and re-entering the workplace
  3. Relationships: making up and breaking up
  4. Motherhood and becoming a carer
  5. Later life, planning and entering retirement
  6. Ill-health, infirmity and dying

12 Perils and Pitfalls

By analysing women’s life circumstances, the decisions women take and the life events women face, the research highlighted key differences in men’s and women’s risks in life.  12 Perils and Pitfalls have been identified as the top financial risks faced by women through the life course.  In addition, the research identifies patterns in how the Perils and Pitfalls impact women’s financial resilience at different life stages on the Female Financial Life Journey, with the 6 Moments that Matter serving as key intervention points where meaningful change can be made.

 

insuringwomensfutures

 

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UK FinTech sector set to top 100,000 employees by 2030

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However, 82% of companies say they already face difficulties in recruiting non-EEA migrants

Innovate Finance, the independent membership association that represents the UK’s global FinTech community, alongside WPI Economics, recently released a report on the potential effects on the UK FinTech sector of future changes to the country’s immigration policy. The report provides new insight on the scope of the UK FinTech sector which currently represent.

76,500 employees of whom 42% are from overseas (28% from EEA countries, and 14% from non-EEA countries).

The report also forecasts that on current performance the sector is set to grow to more than 100,000 employees, and the number of UK FinTech companies more than double to 3,300, by the year 2030. However, 82% of companies say they already face difficulties in recruiting non-EEA migrants. Under the most likely scenario for future immigration policy, in which the system for EEA migrants moves closer to that for non-EEA migrants, the report predicts a shortfall of 3,200 highly-skilled workers by 2030, at a cost to the UK FinTech sector of £361m.

Innovate Finance is proposing six policy principles as a foundation to develop a proportionate policy response and mitigate the impact of uncertainty on the FinTech sector, including the need to redefine the meaning of “highly-skilled” worker in today’s global jobs market.

Important findings include:

  • UK FinTech sector set to top 100,000 employees by the year 2030 with 30,000 new jobs created.
  • UK FinTech sector highly dependent on global talent with 42% of employees from outside the UK, 28% of which are drawn from the European Economic Area.
  • Failure to maintain a flexible immigration policy could harm the attractiveness of the UK as a place to do business and could lead to a shortfall in highly-skilled workers, resulting in a potential loss of £361m to the UK FinTech sector.
  • Innovate Finance calls for further coordinated action on accessing global talent and at the same time developing local skills to ensure a workforce fit for the future.

Charlotte Crosswell, CEO of Innovate Finance said:

Access to talent is a perennial issue, and one which affects all sectors of our economy. This is not in light of Brexit, but Brexit shines a light on it and risks exacerbating the issue further. Without a flexible approach, the UK FinTech sector stands to lose its global pre-eminence with FinTech companies already facing challenges in recruiting appropriate skills and talent. However, the potential size of the loss has not yet come to pass and if managed correctly, may not materialise. It is up to policy-makers, industry and academia to propose sensible recommendations to mitigate the impact of these findings and to ensure sectors such as FinTech continue to be an engine for UK innovation and growth.

Catherine McGuinness, Policy Chairman of the City of London Corporation added:

As the financial services sector increasingly turns to technology to shape its future, it’s essential that the UK is able to attract international talent to unlock the full potential of this thriving industry.

This data shows that more than one in four FinTech workers hail from the EU or EEA and shines a spotlight on the urgent need to clarify an immigration policy for European workers ahead of the UK’s departure from the bloc in March next year.

The sector’s growth and technological entrepreneurialism depend on it.

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Starling Bank urges change to the way we talk to women about money

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New research from Starling Bank reveals 65% of financial articles in women’s magazines define women as ‘splurgers’.

The way we speak to women about money differs to the way we speak to men, reveals new research commissioned by Starling Bank as part of their campaign #MAKEMONEYEQUAL.

The linguistic study, completed by The Answer (a leading semiotics and cultural value agency), assessed 300 articles from a mix of outlets aimed at men and women readers. They used discourse analysis to understand the difference between what is said and what is really meant.

Based on the results of the study, Starling Bank has therefore launched #MAKEMONEYEQUAL to change the way we talk to both men and women about money.

Anne Boden, CEO & Founder of Starling Bank, said:

Money is an issue. Especially if you’re a woman. There’s are a myriad of factors at play when it comes to being a woman and our finances – but gender inequality doesn’t just start with lower salaries or tokenism in the boardroom.

It starts with the way we’re taught. It starts with the way we’re spoken to.

Language is separating us into spenders and earners, into the frivolous and the empowered. That is why Starling Bank is  launching #MAKEMONEYEQUAL – a call to every business owner, every news editor, every podcast presenter, every headline writer and copy checker: Let’s talk about money in the same way to everyone. And let’s start now.

The study revealed that when it comes to finance, women are considered less productive than men.

Articles give skewed perception of women’s relationship with money

65% define women as excessive spenders advising them to limit, restrict and take better control of shopping ‘splurges’. To combat this, they are encouraged to save small sums, earn small amounts, or to depend on financial support.

Many articles therefore root women’s economic contributions to forms of thrift. Nearly 90% of female targeted articles focus on small ways to save money, often by creating hobby revenue streams or by ‘cutting back’ on outgoings. A further 71% encourage women to specifically seek out vouchers, discounts, bargains and coupons to save money.

Nearly half (47%) of articles aimed at women look at combined income issues, such as shared expenses and reliance on parents or partners, tying women’s economic participation to the domestic sphere and obligations to the family or household. The articles also strongly imply that women are not legitimate earners, suggesting they could contribute more by spending less money made by men, rather than making their own.

The ‘thrifty-splurger’ trope in women’s magazines contrasts to the image of the ‘adept financier’ portrayed in magazines aimed at men. In the latter, the economic participation of men is directed towards work, productivity, and autonomy.

Articles focus on men having a savvy relationship with money

Financial articles aimed at male audiences have a less didactic tone and tend to speak to men as if they’re savvy financiers.

However, 70% emphasise that making money is a masculine ideal. They suggest monetary success and financial literacy are essential to enhancing personal status and getting ahead of colleagues or peers.

Half of the articles aimed at men also use fear propositions to trigger actions such as investing or saving. Articles will rely on masculine stereotyped aspirations, leveraging codes of combat, strength, power, competition and performance. For example, the financial landscape is depicted as easily ‘conquered’ by those ‘daring enough’ to give it a go.

Starling Bank believes that the gender gap starts with the way that both genders are spoken to about money. There are negative implications for both genders, trapping men and women into negative relationships with their finances.

Starling Bank therefore calls for all people who believe that money is genderless – that we need parity and equality – then it’s time to join the campaign to #MAKEMONEYEQUAL.

WiC Comment:  words matter and let’s talk money to girls, help them to understand their “worth” has a “financial value”. 

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Women in Work Index, Closing the Gender Gap

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Women in Work Index

This Index, published by PwC in February 2017 shows that the OECD has continued its gradual progress towards greater female economic empowerment. The Nordic countries, particularly Iceland, Sweden and Norway, continue to occupy the top positions on the Index.

The Index takes a closer look at how long it might take for the gap to close at current rates of progress. A simple extrapolation of historic trends suggests that the gender pay gap in the UK, currently at 17%, might not close until around 2040, meaning that we are still a long way away from achieving pay parity. For some countries where the pace of progress has been slow, this might not be achieved for at least another two centuries!

Key findings

  • Iceland, Sweden and Norway remain the top 3 performing OECD countries.
    The UK experienced a small improvement in its performance, rising from 14th to 13th position in 2015.
  • Poland stands out for achieving the largest annual improvement, rising from 12th to 9th due to fall in female unemployment and an increase in the full-time employment rate.
  • Over the longer term there have been more significant movements in country rankings. Israel and Poland stand out for improving by more than 10 positions since 2000, while the US and Portugal have lost ground.
  • There are significant economic benefits in the long-term from increasing the female employment rate to match that of Sweden. The GDP gains across the OECD could be around US$6 trillion.
  • Fully closing the gender pay gap could increase total female earnings by US$2 trillion across the OECD.
  • However, at current rates of progress, the average OECD country would take almost a century to close the pay gap.

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Generation Austerity: Brexit and Beyond for 18-25yr olds

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MRM’s fourth annual Young Money Report, “Generation Austerity: Brexit and beyond”, looks at the attitudes to finance of 1,000 18-25 year olds who have grown up in the dark shadow of austerity. The study considers the views of young people on a range of topics including

  • pensions and benefits
  • advice and access
  • saving and spending and investing and the economy

as well as featuring contributions from key industry experts across the financial services industry.

Much of the writing and research of this report took place in the wake of the UK’s momentous decision to leave the EU. Many hadn’t expected this, including the markets, with sterling crashing on the news and the stock markets plummeting.

Young people and Brexit not quite what it appears

There was an unprecedented period of national soul-searching in the days that followed and it was to young people that a lot of attention turned. The first stats which emerged showed that they had gone against the status quo, with 71% of 18-24 year olds voting to remain.[1] However, the turnout stats told a different story. Research by Sky Data indicated that of 18-24 year olds, only 36% had actually bothered to vote.[2] So a familiar story emerged of young people watering down their bargaining power in important matters by not exercising their constitutional rights.

Trust in Financial Services low

A similar narrative around a lack of engagement crept into the results of the survey. Trust in financial services is low, and apathy high. Many young people are unwilling to engage fully in key areas of financial services including pensions, saving and investing – all of which are vital to the financial wellbeing of the population.

Face barriers that parents didn’t

However, the report also reveals that they face a number of barriers that their parents didn’t. Job uncertainty and few opportunities to get on the housing ladder, coupled with soaring rents and a lack of disposable income have all contributed to the inability of ‘Generation Austerity’ – let’s call it ‘Generation A’ – to engage with the sector. Nearly half of those we surveyed (48%) expected to be worse off following Brexit.
The report explores some of the reasons behind this, and together with the contributors, examines how we can encourage Generation A to interact more effectively with financial services, particularly as we consider the Brexit fall-out.

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