Insurance industry increases spending with California diverse suppliers by nearly $587 million since 2012
News: 2015 Press Release
SACRAMENTO, Calif. - Diverse California businesses supplied $1.52 billion in goods and services to insurance companies last year -a $587 million increase since 2012 -according to new Insurance Diversity Survey results released yesterday by Insurance Commissioner Dave Jones.
"Our Insurance Diversity Initiative asks insurance companies to give minority, women, disabled veteran, and LGBT -owned businesses an equal opportunity to compete for contracts," said Commissioner Jones. "The increase in procurement from diverse businesses we reported yesterday is a direct result of our Insurance Diversity Initiative and insurance companies' efforts to reach out to diverse suppliers. We are pleased to see so many insurance companies setting up programs to reach out to diverse suppliers and tracking their procurement with them. We hope to see more progress in the years ahead."
Overall, the insurance industry procured 6.4 percent of their total goods and services in California from diverse suppliers in 2014, compared to 5.6 percent in 2013.
Commissioner Jones convenes more than 250 insurance company executives and diverse business leaders today at California State University Sacramento for the 4th Annual Insurance Diversity Summit. Minority, women, disabled veteran, and LGBT -owned businesses will have business matchmaking sessions with insurance companies. Commissioner Jones will present awards to individuals and insurance companies to recognize their commitment to supplier diversity and governing board diversity.
- The insurance industry collects $259 billion annually in premiums from Californians. The law requires Californians to purchase many types of insurance, including health insurance, automobile insurance, and workers' compensation insurance. California is the most diverse state in the nation.
- All insurers that collect $100 million or more in California written premiums met the threshold to submit a report. 226 insurance companies, representing 47 percent of the national insurance market, met the threshold to respond to the 2015 Insurer Supplier Diversity Survey.
- In 2012, insurance companies spent $930 million with California diverse suppliers. In 2014, diverse California businesses received $1.52 billion from insurers, a 63 percent increase in procurement dollars over a 3 year period.
- The insurance company reports in response to the 2015 Insurer Supplier Diversity Survey can be found here.
- Additional information about Jones' Insurance Diversity Initiative is on the department's website.
- The 2015 Insurance Diversity Summit will take place on Wednesday, November 4, 2015 at California State University, Sacramento (University Union). Credentialed media are invited to attend from 10:00 -11:00 a.m. for Commissioner Jones' remarks and the full analysis of new survey results. Specific details about the Summit are available.
- Photos from the event are available to view on CDI's Flickr site:
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.