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Results released from first national insurance diversity survey

News: 2016 Press Release

For Release: December 7, 2016
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Results released from first national insurance diversity survey
California leads nation in insurers contracting with diverse businesses, still more room to grow
SACRAMENTO, Calif. — California Insurance Commissioner Dave Jones announced the results today from the first ever national survey of the insurance industry around supplier and governing board diversity. For the first time, insurance commissioners from six states—California, District of Columbia, Minnesota, New York, Oregon, and Washington – joined together in a multistate effort to collect information from over 600 of the nation's top insurance companies. The 2016 Multistate Insurance Diversity Survey, the results of which were released today, found that insurance companies spent more than $7.7 billion with diverse suppliers across the nation in 2015.

The survey also revealed that in California, more than $1.7 billion is spent with diverse suppliers, more than in any other state. The multistate effort and survey are meant to increase awareness of business opportunities for diverse suppliers, provide for increased competition for insurer contracts, and give businesses the chance to expand, which will increase economic growth and job creation.

"California's Insurance Diversity Initiative was established in 2012 to open more procurement doors to our state's diverse businesses and to give insurers the chance to see better prices and more innovative products from potential suppliers, as a larger supplier pool means increased competition for contracts," said Commissioner Jones. "We have seen great progress in California and we are now hoping that trend continues nationally since we are now working with my colleagues in five other states to implement the first national insurance diversity survey. Minority, women, LGBT, and disabled veteran owned businesses are a big part of our national economy and they simply want the chance to compete fairly for business. I encourage more insurers to increase their efforts in doing business with diverse suppliers, and I commend those insurers who continue to be leaders by proactively implementing strategies to diversify their boards and expand their outreach to our nation's talented diverse businesses."

In addition to the national data collected, each partner state involved in the multistate effort now has data to understand to what extent insurers are opening the doors of economic opportunity to their respective state's local minority, women, LGBT and disabled veteran owned businesses in contracting or purchasing goods and services.

Since Commissioner Jones launched the statewide Insurance Diversity Initiative in 2012, California has seen a steady increase in the insurance industry in their procurement spend with diverse businesses. This year, California's top insurers reported a diverse spend of 8.6 percent, an increase from last year's 6.4 percent in spend with the state's diverse businesses. The survey, annual summit, and matchmaking forum hosted by the department continue to provide a platform that brings insurers together with diverse suppliers and provide a place where discussions can begin to further the goals of the Initiative.

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Media Notes:

The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $371 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.

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