The research marks the first benchmark assessment and is based on a data collection covering more than 82,000 staff. It shows 78% of companies have a diversity and inclusion strategy, with 74% having an executive sponsor for diversity and inclusion.

However, on gender, although the industry is exactly split 50/50 across all levels, only 21% of executive and 21% of board positions are held by women.

This is despite 73% of firms having an executive or management development programme that prioritises good gender balance, while 56% have a development programme targeting those that may be underrepresented. Over three quarters (78%) have already provided unconscious bias training for staff, and a third (33%) have a returnship programme to help parents with their return to work.

The sector’s current workforce is found to be 16% black, Asian or ethnic minority, compared with 14% in the general UK working age population.

Huw Evans, director general of the ABI, said: ‘Although there is a gender balance across our sector as a whole, four out of five executive and board roles are held by men.

‘The ABI’s new research demonstrates that most firms are not just talking about change but are taking practical steps to make a difference, whether that is for LGBT+ staff or those from ethnic minorities. Investment in training and use of executive sponsors is high but more firms need to invest in returnship programmes to help new parents back to work.

‘I know from my own conversations with industry leaders that there is a great determination at the very top of our member firms to tackle this issue. The ABI will continue to do all it can to support this change including conducting this research regularly so the sector can benchmark progress.’

Report by Pat Sweet