Inclusive Policies: Bridging the gender gap

Posted on 26 Aug, 25 by BrightRock

As society evolves in its understanding of gender, so too does the long-term and life insurance sector. However, the insurance industry in South Africa still faces hurdles in serving transgender and nonbinary individuals in ways that reflect contemporary views on gender identity.

Suzanne Stevens, BrightRock CEO, has shared her insights on how the sector is evolving, the challenges it faces, and the steps that can be taken to improve inclusivity.

Serving the transgender and nonbinary community

According to Stevens, individuals who identify as transgender or non-binary are protected by South Africa’s progressive legislation and are not excluded from accessing life insurance products in South Africa.

However, the process of obtaining cover may not be as straightforward as it is for cisgender individuals.

She explained, “The underwriting practices and communication within the insurance industry often lag behind the swift societal shifts regarding sex and gender. While individuals can access insurance, the journey may not always be as smooth, although this is something we’re conscious of at BrightRock and working to improve.”

Misconceptions and challenges

One of the key challenges in the insurance industry is the way gender is treated during the underwriting process. Insurers consider a person’s sex assigned at birth as a key risk factor, which means that gender is still often treated as a binary construct.

This binary approach can create confusion for transgender and nonbinary individuals. “Sex, gender, and sexuality are separate but interrelated concepts,” Stevens. While sex refers to the biological classification assigned at birth, gender is a deeply personal identity, and sexuality relates to a person’s romantic and sexual preferences.

This can make transgender and nonbinary clients feel overlooked or misunderstood, especially when insurance application forms do not reflect their gender identity or when they are asked to disclose their sex assigned at birth, which may not align with their lived experience.

Unique underwriting challenges

Stevens highlighted the challenges insurers face in underwriting life insurance for transgender and nonbinary individuals. “In South Africa, and globally, underwriting is largely based on the sex assigned at birth,” the representative explained. This is because sex, alongside age, remains one of the strongest predictors of health risks. Data suggests that women tend to live longer and experience lower morbidity and mortality risks than men.

“In the case of transgender and nonbinary clients who have undergone hormone therapy and other gender affirming therapies, there is no one-size-fits-all approach to how they are underwritten. At BrightRock, our underwriters will use the information disclosed during the underwriting process regarding their current health status and past treatments to arrive at a view of their current risk profile, with the aim of being fair and considered in our approach”.

Adapting underwriting criteria

To better serve transgender and nonbinary individuals, the representative suggests that the insurance industry must adapt its underwriting practices. “The first step is acknowledging the challenges,” Stevens emphasised. Insurers must rethink their communication strategies, demonstrating sensitivity toward the LGBTQIA+ community and offering clearer explanations for why sex assigned at birth is requested. Additionally, insurers can provide more inclusive application forms that recognise diverse gender identities.

Looking further ahead, insurers could look to international examples for guidance. The European Union, for instance, introduced a ruling in 2012 that mandated gender-neutral life insurance pricing. As a result, some insurers in Europe have adjusted their underwriting practices, using gender-mix risk margins or community-rated models. Stevens says, “These models are still being tested, and there is a risk that they could unintentionally raise premiums, but with advancements in big data and predictive modelling, insurers have a unique opportunity to develop fairer and more accurate risk assessments.”

Legal and regulatory considerations

In South Africa, insurers must comply with various legal and regulatory frameworks that ensure fair treatment for all clients, including those in the LGBTQIA+ community. “Insurers cannot discriminate unfairly based on gender, sex, or any other protected characteristic,” Stevens explained, referencing the country’s Constitution and the Long-term Insurance Act. However, insurers are still required to gather certain information, such as gender, for regulatory purposes, including compliance with the Financial Intelligence Centre (FIC) and anti-money laundering regulations.

Furthermore, insurers must adhere to the Protection of Personal Information Act (POPIA), which ensures that clients’ personal data, including gender information, is handled with confidentiality and used solely for its intended purpose.

Future trends and the role of insurers

As consumer awareness of gender inclusivity grows, insurers will face increasing pressure to reflect these changes in their products and services. She expects that consumers will increasingly consider an insurer’s stance on diversity and social issues when choosing a provider. “We are already seeing a shift towards more inclusive practices, but as emerging technologies allow insurers to collect and analyse data more accurately, the industry will likely undergo significant transformation.”

Insurers can play a crucial role in advocating for broader societal acceptance of transgender and nonbinary individuals by promoting diversity both internally and externally. “From inclusive workplace practices to clear communication with clients, insurers can drive visibility and foster greater understanding, and these are all major areas of focus for our business as we embark on a journey to improve inclusivity in our industry,” she stated. Financial advisers, too, have a role to play as advocates for their clients’ needs, ensuring that insurance products are accessible and respectful of clients’ identities.

While South Africa’s life insurance sector has made strides in serving transgender and nonbinary individuals, much work remains to be done. The sector must rethink traditional underwriting practices, communicate more sensitively, and create inclusive products that recognise and accommodate the needs of a diverse population. As the industry adapts to these challenges, it will play an important role in shaping a more inclusive society, both within the insurance market and beyond.

This article was written by Myra Knoesen. It was published on FA News on 25 August 2025. You can read the original article here. https://www.fanews.co.za/article/life-insurance/9/life-underwriting/1107/inclusive-policies-bridging-the-gender-gap/42310