Overlooked or Underserved? The Hidden Women’s Financial Protection Gap 

Income protection insurance has been undersold for decades. We have witnessed an improvement in recent years, with a notable 16% increase in 2023 in the UK, according to the ABI. But a significant gender gap persists and it’s time for the industry to take notice and fix it. 

This blog offers four ways to move forward, but first let’s look at the obstacles… 

The Gender Divide 

A report by IRESS and The Income Protection Task Force (IPTF) revealed that although income protection sales among women rose by 13% between 2017 and 2023, men still outpaced women significantly. In 2023 alone, 50% more men than women purchased income protection policies in the UK. 

This disparity is especially striking given that there is only a 10% difference in employment levels between genders in the UK. But 38% of employed women work part-time, compared to just 14% of men – a factor that often limits access to traditional income protection products. 

This isn’t just a UK issue:  

• Only 16% of women in South Africa have income protection cover compared to 20% of men. 

• Globally, women’s cover values are typically substantially lower than men’s – 20% lower, in some cases. This is even more startling as 38% of South African households are headed by women, many of whom rely on a single income. 

• In Europe, women report feeling excluded by insurance products, with 45% citing unfair exclusions and many struggling with affordability and product complexity. 

• Women across Asia face structural barriers, such as informal employment, low financial literacy, and limited access to contributory schemes, leaving them under-protected. 

Interestingly, IRESS and the IPTF’s research shows that women are more likely to choose full-term income protection policies, which offer coverage until retirement. This suggests a strong preference for long-term financial resilience, yet women remain underrepresented in overall uptake. 

What’s the Problem? 

Let’s be clear: this isn’t about stereotypes – it’s about facts. 

Women undertake 76% of all unpaid care work globally, spending 2.5 times more time on caregiving than men. This often leads to career gaps, part-time employment, or no income at all – making income protection either unaffordable, or inaccessible. 

When surveyed, many women cite: 

• Lack of financial knowledge 

• Uncertainty about where to get advice 

• Confusion around product eligibility 

• Affordability of financial advice or coverage due to the gender pay gap 

These are real hurdles. And it’s why insurers, advisers, technology providers, and the media must work together to raise awareness and design more suitable, affordable products. We have already seen a push to close the wider protection gap and ensure that people of all ages and financial backgrounds become financially resilient. But this is especially important for women, considering the existing gap.   

4 Ways to Move Forward 

1. Holistic Advice 

Financial advice must evolve to reflect modern households. Avoid gender assumptions as income risk applies to everyone. The outdated focus on the “main breadwinner” – often assumed to be male – no longer fits today’s reality. With many households relying on two incomes, advisers should guide couples to make joint decisions, based on shared financial responsibilities. 

2. Protecting Contributions Beyond Salary 

Consider a family where one partner works full-time, and the other is a homemaker. If the homemaker becomes ill, their contribution – childcare and household management – still carries financial value. Without protection, the working partner may need to take time off, impacting household income. Income protection should cover both roles and all outgoing expense, not just salaries. 

3. Better Product Visibility 

Finding loss of income policies for part-time workers or homemakers can feel like searching for a needle in a haystack. These products exist, but they’re not easy to find. Insurers must promote flexible policies that reflect diverse work structures and caregiving roles. 

4. Designing for Real Life 

Insurers are beginning to respond with more flexible and affordable policies, but there is scope for more to be done: 

• Cover that accommodates career breaks and multiple jobs 

• Flexible, bundled products with a selection of deferred periods 

• Support for post-natal recovery, perimenopause, and other life stages 

• Financial education and inclusive case studies to build confidence and awareness 

We Must Be Better…Sapiens Can Help  

We as an industry must be accountable for providing affordable, accessible, and inclusive cover to all. Change is happening, driven by more open conversations about mental and physical health, resilience, and financial vulnerability. The pandemic reminded us that serious illness doesn’t just happen to other people, and the cost-of-living crisis continues to shine a spotlight on the need to protect against loss of income. 

With technology accelerating innovation, the pace of change is only increasing. Now is the time to ensure income protection works for everyone, especially the women who have been overlooked or underserved for far too long. 

Sapiens can help you close this gap. Contact us.