Making Financial Empowerment Count This Mother’s Day

With growing dissemination of information, women are also beginning to understand that financial independence is critical. The long-held belief that women are primarily ‘nurturers’ and ‘caregivers’ has been a barrier in creating financial autonomy for them. In fact as per a recent survey, women cited financial independence as one of their top three priorities in life! 

Financial exclusion has majorly impacted the segment of women homemakers, with majority continuing to seek spousal support in absence of other means.  Financial equality of women has a key role to play in bringing about gender equity in society, and enabling their economic independence. For at-home-mothers, this holds true as they play a pivotal role in building a secured future for the family especially children. 

This presents an opportunity for insurance brands to tackle this pressing challenge for homemakers by financially empowering them for a brighter tomorrow.
  

• Recognizing inclusion barriers: The first step in creating an empowered ecosystem lies in understanding the socio-economic conditions of women. Right from their social strata, educational status to economic position, it is important to map key barriers that hamper financial growth for homemakers. This can help insurers in creating offerings that are more suited to the requirements of the homemakers; helping in bridging the financial gap
• Digitizing financial awareness: Physical distance from contact centres and other socio-cultural contexts continue to be major impediments in extending financial education to women. Through innovative technologies, financial literacy can be driven through diverse touchpoints including mobile applications, online modules etc enabling women to gain knowledge in easy and convenient formats
• Investing in life insurance: A life insurance is a life-long protection cover that will ensure homemakers are financially independent in their silver years. Most insurance brands are customizing their insurance products, offering women security against financial and medical uncertainties, catering to diverse needs at different life stages and planning for crucial goals- health, pregnancy, children’s education and long terms savings etc 
• Building a diverse agent pool: Insurance Regulatory and Development Authority’s (IRDAI) annual report 2020-21 highlighted that women comprise only 27% of the total individual agency force. This number can be significantly increased through corporate policies rolled out by insurers, which can be the first step towards maintaining a healthy gender diversity and retaining it successfully. Onboarding women insurance sellers is a plus because women customers can discuss their financial and health matters more openly with the women agents. The mutual bonding could make a world of difference to sales and scale financial literacy amongst other women, as well

A recent survey noted that only 40% women own term insurance compared to 44% men, highlighting the need for greater investment on increasing financial education among women. Financial literacy can motivate women generating sustainable income through micro activities to wholeheartedly using financial systems and institutions; creating ground for higher income opportunities. Through sustained efforts by insurers, regulatory bodies, homemakers can find a larger share in financial decision-making be in the households or as independent entrepreneurs.

The author is Deputy Managing Director, Max Life.

(Disclaimer: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.)