Surge in Personal Guarantee Insurance Applications from Female Directors Reflects Growing Confidence
Applications for personal guarantee insurance from female directors rose an impressive 77% year on year in the first half of 2026, surpassing the 64% growth seen across the broader market. This sharp increase highlights a significant shift in confidence among women leading small and medium enterprises (SMEs), who are increasingly seeking to protect their personal assets while accessing business finance. As female entrepreneurs take bolder steps towards securing funding, they are also becoming more proactive in managing the associated personal risks, signalling a positive trend in SME finance and gender parity.
Why are female directors seeking personal guarantee insurance?
The notable rise in demand for personal guarantee insurance among female directors is closely linked to broader efforts aimed at improving access to capital for women-led businesses. Todd Davison, managing director of Purbeck Insurance Services, explains that this growth aligns with data showing that signatories of the Investing in Women Code—a government-backed initiative—have outperformed the wider market in supporting female founders for six consecutive years. “In the first half of 2026, applications from female directors to protect against the risks of business loans grew 77% year on year, faster than the 64% growth seen across the entire market,” Davison notes. Furthermore, the proportion of applications from female-led businesses has increased from under 12% to nearly 13% within a year.
This trend suggests that more women are recognising the importance of managing personal risk when securing SME lending and are turning to insurance products that safeguard their homes and personal assets. Such protective measures enable female entrepreneurs to pursue growth opportunities with greater peace of mind.
How does personal guarantee insurance work?
Personal guarantee insurance exists to mitigate the financial risks directors face when they sign personal guarantees to secure business finance. Since these guarantees often put a director’s home and personal assets on the line, insurance provides a crucial safety net. “The fact that more female directors are taking this step and increasingly protecting themselves indicates growing confidence in pursuing the borrowing that fuels business growth,” explains Todd Davison.
Typically, personal guarantee insurance covers the shortfall between the loan amount and the assets available to the lender, effectively separating personal wealth from business liabilities. This protection is becoming increasingly relevant as SME lending expands and more entrepreneurs seek external funding, helping to foster a more secure borrowing environment.
What role does the Investing in Women Code play?
Initiatives like the Investing in Women Code play a pivotal role in improving capital access for female-led businesses—a segment that has historically faced greater challenges securing finance. “Government-backed initiatives like the Investing in Women Code are vital because access to capital has historically been harder to secure for female-led businesses,” says Davison. The data from Purbeck Insurance Services indicates that as capital access improves, so too does awareness of how to manage the personal risks involved.
The Code encourages participating organisations to adopt best practices that improve funding pathways for women, and the measurable outcomes demonstrated by the increased applications for personal guarantee insurance reflect the positive impact of these efforts. This progress signals a healthier, more inclusive SME finance market.
What does the future hold for SME finance and gender parity?
The upward trajectory in personal guarantee insurance applications from female directors corresponds with a modest rise in the proportion of small businesses run by women, which currently stands at around 14 percent. As more women engage with protective insurance products, lenders may begin to perceive female-led businesses as lower risk, potentially broadening access to finance.
Industry experts observe that the combination of targeted policy measures, data-driven insights, and innovative insurance solutions creates a reinforcing cycle that can accelerate gender parity in SME finance. Purbeck Insurance Services, a leading UK provider of personal guarantee insurance and an FCA-authorised firm backed by Markel International, is well-positioned to support this evolving landscape through its expertise and data-focused approach.
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