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Homeowners Insurance, Insurance Industry, Insurers and the Economy, Specialty Coverage

LGBTQIA+ Homeownership Gap May Be Fueling Insurance Protection Gap

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Chart of the Week (COTW), As Fewer Same-Sex Couples Own Their Dwelling, They Face a Larger Insurance Protection Gap. The homeownership gap for same-sex couple households is 25.2% based on the most recent data.
The homeownership gap for same-sex couple households is 25.2% based on the most recent data.

As part of an ongoing discussion on the link between the housing and insurance markets, the Insurance Information Institute (Triple-I) released a Chart of the Week (COTW), “As Fewer Same-Sex Couples Own Their Dwelling, They Face a Larger Insurance Protection Gap.” Based on data from 2023, 62.6 percent of same-sex households own their homes and 37.4 percent rent, representing a homeownership gap of 25.2 percentage points within this community. In comparison, 82 percent of married opposite-sex households own their homes, while only 18 percent rent.

In the United States, homeownership offers several benefits (versus renting) to those with the financial resources to achieve and sustain it. Owners can accrue equity to increase their chances of making a profit when they sell their home. They can reap tax benefits through mortgage deductions. Mortgage holders can also lower monthly housing costs when interest rates drop. Ultimately, a home can increase personal net worth and offer a mechanism to transfer wealth to the next generation. Protecting this asset and its contents makes good financial sense.

Renters may not own their dwelling, but they keep personal belongings in it. They can face serious financial risks in the event of a loss, theft, disaster, or personal liability event. Yet, according to the COTW, 43 percent of renters are uninsured or underinsured, compared to 30 percent of homeowners. There are several reasons attributable to this difference, but it’s essential to keep one at the forefront: insurance coverage requirements are commonplace in mortgage agreements but not in lease agreements. Thus, homeownership status can drive participation in the insurance market.

Examining factors that impede homeownership for same-sex couples might shed light on how to attract and retain more policyholders in this demographic. Looking closely at the interplay of just three of these – housing prices, geography, and legislative environment – reveals that housing tends to be more expensive in LGBTQIA+-friendly areas. Prospective buyers may need to earn at least $150,000 a year – as much as 50 percent more – to avoid living in regions without basic legal protections, according to a recent study of real estate market data across 54 major U.S. metropolitan areas.

High monthly housing costs strain budgets, pushing homeowners and renters out of the insurance market. It can also put the financial qualifications for home buying – i.e., building credit and savings – out of reach. Households are considered cost-burdened when they spend more than 30 percent of their income on rent, mortgage payments, and other housing costs, according to the U.S. Department of Housing and Urban Development (HUD).

Nationwide, renters had higher median housing costs as a percentage of their income (31.0 percent) compared to homeowners (21.1 percent for homeowners with a mortgage and 11.5 percent for those without a mortgage). In metropolitan areas that welcome and protect diversity, renters are more likely to be housing cost-burdened, particularly in New York (52.1 percent of residents pay more than 30 percent of their income) and San Francisco (37.6 percent of residents). Renters in states and municipalities where legislation is considerably less welcoming but rents are lower can face comparatively higher premiums for rental coverage.

Despite the legalization of same-sex marriage and various anti-discrimination laws, the LGBTQ community still battles considerable discrimination and systemic biases in many areas of life, including housing. Insurers can work to better understand the diverse needs of LGBTQIA+ individuals, couples, and their families, facilitating more effective solutions for managing financial risks. And most importantly, the industry can improve communication around potential coverage benefits for these households.

“We can start closing the protection gap by having people at the table who understand the lived experiences behind the numbers,” says Amy Cole-Smith, Executive Director for BIIC/ Director of Diversity at The Institutes.

For example, renters might find it helpful to know their policy covers a loss event linked to discrimination against them, such as malicious damage or vandalism to the property by a third party. Even when it’s evident the destruction isn’t the renter’s fault, the landlord might still attempt to hold them responsible, either through a lawsuit, a rent increase, or eviction. Additionally, unmarried couples should be informed about whether the insurer includes both partners’ names on a policy and how this provision affects them in the event of a claim.

“Cultivating an inclusive workforce drives smarter solutions, like renters’ insurance that aligns with the realities of same-sex couples, more equitable underwriting, and marketing that truly resonates,” Cole-Smith says. “This isn’t just about equity—it’s about unlocking growth and staying competitive in a changing market. When the insurance workforce reflects the diversity of the market, we’re in a stronger position to build products that meet people where they are.”

Triple-I works to advance the conversation around crucial issues in the insurance industry, including Talent and Recruitment. To join the discussion, register for JIF 2025. We also invite you to follow our blog to learn more about trends in insurance affordability and availability across the property/casualty market.

Careers and Employment, Insurance Industry

Women continue to hold 59 percent of the insurance workforce, with representation among underwriters increasing by 5 percent.

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On March 3, Triple-I released its Chart of the Week, “Women’s Representation Among Underwriters Increased.” Citing data from the Bureau of Labor Statistics, the chart reveals that the number of women insurance Underwriters increased by 5 percent from 56.9 percent to 61.9 percent in 2024.

The insurance sector provided about 3.0 million jobs–or 1.9 percent of U.S. employment (workers 16 years and over) in 2024. Data from the Bureau of Labor Statistics indicates that 1.7 million workers were women.  Since 2012, women have comprised about the same overall proportion (about 59 percent) of the industry workforce each year. However, the latest COTW shows that representation continues to vary across occupations. From 2023 to 2024, women’s representation among Insurance Clerks decreased 1.4 percent, from 80.1 percent to 78.7 percent. Representation among Insurance Sales Agents decreased 3.8 percent, from 54.9 percent to 51.1 percent.

The average representation of women across the U.S. workforce is 47 percent based on data from households in the Current Population Survey (CPS), an annual survey of business establishments in private industry conducted by the Bureau of Labor Statistics (BLS). 

Life insurance, annuities, and home and auto insurance sectors are considerably more gender diverse than the average industry in North America, especially in entry-level jobs, where women make up two-thirds of the 70% of entry-level workers. In contrast to the abundance of representation at the bottom, the view across the top ranks looks notably different. Only about 22 percent (less than 1 in 4) of workers in the C-Suite are women, and only two women CEOs head up Fortune 500 insurance companies: Thasunda Brown Duckett, President and Chief Executive Officer of TIAA, and Tricia Griffith, President and Chief Executive Officer of the Progressive Group of Insurance Companies.

Nonetheless, women continue to demonstrate their skills, willingness to grow, and ability to influence the insurance industry in a positive and forward-thinking way.  According to McKinsey, for every 100 men promoted to managerial positions, 104 women are promoted — much higher than the 87 women promoted across all industries. At the board level, women hold 40 percent of the seats in the aforementioned industry sectors.

However, from entry-level to managerial level, the women in the industry are predominantly white, with the leadership pipeline remaining even more closed off to women of color. Only one in 20 senior vice presidents and one in 35 direct reports to CEOs in insurance are women of color.  Black women comprise more than 7 percent of the entry-level insurance workforce, but this number plummets along the corporate ladder and falls to virtually zero at the C-suite.

There’s evidence that women as workers in the insurance industry go back a long way, as far back as 1797. Their tremendous impact on the industry as consumers likely pivoted in 1839 with individual American states passing the Married Women’s Property Act, allowing life insurance proceeds to be passed to a widow without being subject to the demands of the husband’s debtors. By 1942, women accounted for 30% of total life insurance sales, and just two years later, women were buying 83% more life insurance than they did in 1942.

Today, keeping risk management solutions easily accessible and tailored to the market’s needs is arguably the biggest core challenge facing insurers. Research indicates that female CEOs among U.S. property-casualty insurance companies are associated with “lower insurer insolvency propensity, higher z-score, and lower standard deviation of return on assets.”  Additionally, data suggested that as consumers, women tend to spend comparatively more of their income on insurance and have different consumer behavioral preferences that may compel a rethinking of insurance value chains.

Thus, insurers may discover that fostering an inclusive culture that welcomes more women into leadership can be a faster path to successful outcomes. Join us at the upcoming JIF 2025 event and follow our blog for more insights on the future of insurance.