The power of DEI in retaining talent

Why do people stay?

It’s a question many brokerage leaders are reflecting on as they face looming retirements and increased competition for skilled talent.¹ While salary, benefits, and flexibility are top concerns, the decision to stay with an employer often comes down to less tangible factors: a workplace that feels welcoming and fair, values employees’ contributions, and provides opportunities for growth. 

The engine behind this culture is diversity, equity, and inclusion (DEI), and recent research shows just how powerful it can be for brokerages.

The 2025 Canadian Underwriter National Brokerage DEI Survey, sponsored by Sovereign Insurance, found that more than half of brokers (51%) believe improved retention is a key economic benefit of DEI, demonstrating that inclusive practices are smart business investments. 

When asked about benefits that contribute to a positive culture and support retention, brokers cite the following that are directly supported by effective DEI practices:

• mutual respect and a welcoming environment (70%)
• greater fairness and transparency (52%)
• increased personal growth opportunities (48%)
• better collaboration and cohesion (43%)

The findings make it clear: DEI is a proven driver of employee retention in the insurance sector, delivering measurable economic benefits by creating workplaces where people want to stay, grow, and contribute.

“Inclusivity isn’t just the right thing to do. We know it drives performance,” states Colette Taylor, Chief Operation Officer (COO) at Sovereign Insurance. “In fact, 71% of the brokers surveyed cited that DEI drives performance within their own workplace… Some of those benefits are better employee retention, better customer satisfaction, increased innovation, and overall engagement of their employees. That’s the ROI of inclusion.” 

Conversely, overlooking DEI can put retention and business outcomes at risk, leading to the loss of strong employees, top talent, and even customers. It also limits the diverse perspectives that are critical for innovation and effective decision-making in insurance. 

In fact, the survey found that nearly three-quarters of brokers (74%) have left or considered leaving their workplace due to a toxic culture (45%), lack of mentorship (31%), and mental health struggles (26%). Lack of career advancement opportunities, discrimination, microaggressions, and feeling unwelcome are also cited as concerns. 

For insurance leaders, these findings underscore the importance of deepening their focus on DEI—recognizing it as a strategic investment in talent retention, workforce resilience, and long-term business success. 

Here are a few ways to put a meaningful DEI strategy into action:

Create a welcoming environment: A warm and inclusive workplace not only helps employees feel valued and supported, but it also has a positive impact on retention.² This type of environment isn’t created by chance, but by intentional design. In practical terms, it encompasses everything from inclusive policies and communications to accommodating physical spaces to employee resource groups (ERGs) where employees can support each other.³

Related: Is your team silent or safe? Creating space for respectful dialogue

Development inclusive career pathways: Equitable career pathways ensure all employees have the opportunity to grow and succeed. Key actions include providing mentorship programs, training opportunities, and career guidance that break down barriers to advancement.  Promoting equity in leadership opportunities is also critical. This involves proactively seeking out talent from underrepresented groups for leadership roles and addressing biases in hiring and promotion processes.⁴

Related: Mentorship: The underused DEI superpower

Recognize diverse contributions and achievements: Embracing diversity builds a more inclusive environment where everyone feels valued and empowered to contribute, ultimately leading to higher employee engagement and retention.⁵ Equally important is recognizing individual achievements, which strengthens the workplace community overall. A study by Gallup and Workhuman found that when employees have a strong workplace community, they’re more likely to feel like they belong, which translates to a 43% increase in retention.⁶

As brokerages face a talent shortage, it’s clear that DEI is not a temporary initiative or checkbox exercise—it’s a key driver of retention. Creating workplaces that are welcoming, fair, and inclusive not only helps employees stay; it positions businesses for long-term success. 

Sources
¹ Canadian Underwriter, “Addressing a shortage of qualified commercial underwriters,” Nov. 28, 2023, updated Oct. 30, 2024
²  Culture Partners, “New Employees: Nurturing a Welcoming Environment,” April 11, 2024. 
³ The Inclusive Workplace, “Creating a Welcoming Workplace.” 
⁴ Diversio, “DEI and Retention: How Inclusive Practices Boost Employee Loyalty,” April 30, 2024. 
⁵ Diversity Resources, “Building Better Teams: Why Diverse Perspectives Drive Success.” 
⁶  Forbes, “Why Recognition Could Be The Key To Employee Engagement In 2025,” Sept. 13, 2024.