Insurers’ “opportunity could be even higher if the value of unpaid domestic work and childcare was insured,” the report found.
The fix? If the wealth management industry hopes to capture more assets from women, companies and advisors need to rethink how they approach and serve female clients, treating them as individuals rather than as a “category.”
That means steering clear of stereotypes and "pinkified" marketing tactics, listening to clients closely in order to meet their needs, and developing products and services that can be tailored to what women want, according to the report.
“While many factors lead to greater client-centricity, gender is an important element. We believe there is significant revenue uplift for those institutions that listen to and understand their customers,” the authors said.
For example, although data shows that women typically invest in more conservative financial products than men—often holding a large portion of their portfolio in cash—this does not mean women are necessarily more risk averse, only underserved, the authors said.
Recent evidence shows that when differences in income volatility and lower net wealth are adjusted for earnings, the risk appetite between women and men may be comparable, contrary to popular belief. Observed behavioral differences do not always reflect intrinsic differences or what a female client wants, the authors said.
“We do need to be thoughtful in how we interpret the data and apply insights,” the authors added.
When talking about average trends for women, it is important to recognize that any person may fall anywhere on the range, they warned.
“Cultural context will mean that insights will manifest differently in individual geographies,” the authors added. The goal should be to understand real, unmet needs, rather than falling back on superficial gender stereotypes.”
The innovative solutions that will result from using a gender lens when creating investment programs and products will not only benefit women but all customers, said the authors.