Summit convenes insurer executives focused on governing board diversity
News: 2018 Press Release
SAN FRANCISCO, Calif. — Insurance Commissioner Dave Jones hosted the first governing board diversity summit by bringing together insurance company CEOs and leadership executives who can impact change and lead the industry toward broader diversity at the board level. The event took place on Friday, March 2, 2018 with a select group of attendees joining from across the country and London.
The summit kicked off with a presentation by Vivian Hunt, Managing Partner of McKinsey & Company and author of the world-renowned Diversity Matters report, about their latest sequel released in January 2018 highlighting how to take action on inclusion and diversity to impact growth and business performance. In the expanded dataset, the link between profitability and diversity on top teams continue to be statistically significant and even stronger. Companies in the top quartile for gender diversity were 21 percent more likely to outperform on profitability, whereas those in the top quartile for ethnic diversity were 33 percent more likely to have industry-leading profitability.
Following the presentation, Alliance for Board Diversity Chair Linda Akutagawa moderated a panel featuring Ms. Hunt of McKinsey, Patrick Prout of executive search firm ZRG Partners, and two insurance company executives who shared their perspectives onboard diversity. CSAA Insurance Group Board member and diversity trailblazer Ken Coleman capped off the summit by facilitating a candid conversation among invitees regarding the challenges and successes of board diversity within their respective companies, as well as recommendations for action.
"Since I launched the California Insurance Diversity Initiative in 2011, we have seen a major increase in insurer procurement from diverse suppliers," said Insurance Commissioner Dave Jones. "Today's Insurer Governing Board Diversity summit was held to allow industry leaders an opportunity to share ideas and best practices with regard to increasing the diversity of governing boards. I commend those insurers who are leaders in the area of governing board diversity and those insurers who are increasing their efforts in this regard."
Commissioner Jones established the Insurance Diversity Initiative in 2011 in an effort to focus on diversity issues within California's $289 billion insurance industry to encourage increased procurement from California's diverse suppliers and diversity among insurer governing boards.
The 2014 Governing Board Diversity Survey is the first-in-the-nation focused on the state of diversity among insurer governing boards. It is meant to encourage insurance companies to seek a leadership and a board that reflects the changing demographics and diversity in California and across the nation.
In 2016,Commissioner Jones and insurance commissioners across six states established the Multistate Insurance Diversity Survey Initiative to understand the state of supplier and governing board diversity among the nation's now $1.84 trillion insurance industry. Through transparency, these efforts aim to increase more diversity on insurer governing boards, encourage economic opportunities, and increase procurement from the nation's diverse suppliers.
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- More information on the Insurance Diversity Initiative
- More information on the 2014 Governing Board Diversity (GBD) Survey
- More information on the Multistate Insurance Diversity Survey (MIDS) Initiative
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.