Commissioner Lara highlights $2.5 billion in diverse spending by insurers as new data shows the power of outreach and engagement

News: 2026 Press Release

LOS ANGELES — California insurance companies reported spending more than $2.5 billion with over 4,300 diverse businesses in 2025 — including businesses owned by women, people from historically underrepresented communities, veterans/disabled veterans, LGBTQ+ people, and people with disabilities —according to new California Department of Insurance data released today at the 2026 Insurance Diversity Summit. The findings build on Insurance Commissioner Ricardo Lara’s longstanding effort to expand opportunity through intentional outreach, relationship-building, and greater participation in California’s insurance marketplace.

The Department’s analysis also found that insurers conducting outreach to diverse businesses reported an 11-percentage-point higher share of spending with diverse suppliers, showing the measurable difference that intentional outreach and relationship-building can make.

“Protecting consumers has been my top priority since Day One, and that means making sure our insurance market draws on the full strength, talent, and experience of California’s communities,” said Commissioner Lara. “Diverse businesses bring innovation, trusted relationships, and a deeper understanding of the communities they serve. These findings show why that work must continue, especially in areas where progress has stalled or moved backwards. When we open more doors to that talent, we strengthen our insurance industry and ultimately improve how it serves consumers.”

These findings, collected through the Department’s 2026 California Insurance Diversity Survey (CAIDS) – a result of prior successful legislation sponsored by Commissioner Lara – include reported data from 393 insurance companies that collectively reported a total premium volume of $219 billion, capturing nearly 96 percent of California’s insurance market. From the boardroom to the supply chain, these critical insights highlight the levels of progress and the gaps that remain within California’s insurance industry, while also identifying practices associated with stronger diversity outcomes.

These key insights were released by the Department’s Office of Insurance Diversity and Innovation, created by Commissioner Lara in 2024 to advance the Department’s consumer protection mission through research, equitable data-driven policy solutions, industry engagement, diversity, and innovation across California’s insurance market.

Under Commissioner Lara’s leadership, the Summit puts that data into action by connecting insurers with diverse businesses and leaders, creating opportunities for businesses to compete, strengthening pathways to leadership, and building relationships across California’s insurance marketplace. The Summit advances Commissioner Lara’s and the Department’s broader consumer protection mission by bringing more of California’s talent, experience, and community knowledge into an industry that serves consumers in every community across the state.

Key Findings of the Department’s 2026 California Insurance Diversity Survey:

• Steady Gains in Board Gender Diversity: The latest findings show that gender diversity continues to increase steadily among 192 insurance company boardrooms representing 393 California insurance companies. In 2025, women representation on boards continued to increase with women holding at least 1 out of 4 board seats. Department analysis indicates that 81 percent of boards included in this survey reported having at least one woman board director.
  • Since 2019, Department data indicates that women’s board representation has shown a steady upward trend, increasing from 23 percent to more than 26 percent of board seats in 2025 out of the 1,732 total reported board seats. At this rate of growth, Department analysis indicates that women would continue to gain ground by reaching critical mass, or the point at which they can meaningfully influence decision-making in the boardroom, by 2030. The analysis also projects that insurance company boardrooms could be moving towards gender parity by 2060.
• Boards Still Lag in Racial/Ethnic Diversity and Representation Among Additional Diverse Groups: Racially/ethnically diverse members held 17.4 percent of insurance company board seats in 2025, representing a decline in the proportion of diverse directors from 19.5 percent since 2019. Additionally, in 2025, 15.1 percent of boards still have no gender or racial/ethnic diversity, signaling a reversal of a declining trend since 2019 where 10.1 percent of boards reported zero gender and racial diversity among its boards.
• Likewise, representation among racially/ethnically diverse members and those belonging to other diverse groups has stagnated and continues to fall short of the overall U.S. population. In 2025, respondents indicated that insurance company board seats comprised 7 percent of board members who identified as Black/African American, 6 percent as Asian/Pacific Islander, 3 percent as Hispanic/Latino, and 0.1 percent as Native American. Board members identified as 1 percent as LGBTQ+, 2 percent as veteran, 0.5 percent as disabled veteran, and 0.3 percent as person(s) with disabilities. These marked declines in diverse board directors point to the chilling effects of broader policy challenges, and continue to highlight the need for expanded outreach and engagement.
• Inclusive Supplier Practices Drive Impact: The insurance industry spent $2.5 billion with more than 4,300 California diverse suppliers, providing vital economic opportunities, even as the share of diverse spend declined to 9 percent compared to prior years.
• Insurance company spending with diverse-owned businesses in California reached more than $2.5 billion in 2025, reflecting a 20.7% increase since 2019 when companies spent $2.1 billion. Procurement was the highest among businesses owned by people from historically underrepresented communities, where insurance companies spent more than $1.8 billion. California insurance companies also reported spending over $490 million with women business enterprises, $122 million with multi-certified businesses, over $33 million with veteran-owned businesses, over $21 million with disabled-veteran-owned businesses, over $14 million with LGBTQ-owned businesses, and over $720 thousand among person(s) with disabilities-owned business enterprises.
• From Intentions to Outcomes – Outreach Matters Even More:
  • Despite fewer insurers reporting formal board and supplier diversity policies and practices, the CAIDS findings indicate that intentional diversity practices made a measurable impact. Conducting outreach to diverse board candidates, such as by retaining an executive search firm, increased women’s board representation by 6 percentage points. Likewise, conducting outreach to diverse businesses, such as by participating in supplier diversity events, increased the share of total spend allocated to diverse businesses by 11 percentage points.
  • Intentional diversity practices put diversity policies into action: CAIDS respondents that engaged in diversity outreach efforts also tended to have diversity policies guiding their decision-making. The findings underscore the measurable value of turning commitments into action through intentional outreach and relationship-building — expanding who participates in California’s insurance marketplace and bringing more of the state’s business talent and experience into the industry.

California Leaders Highlight the Value of Expanding Opportunity

In keeping with the Summit’s theme of “Imprinting our Impact” the Diversity Summit began with welcome remarks from Assemblymembers Sade Elhawary and Mark González followed by Clair Whitmer, Deputy Director of the California Office of the Small Business Advocate.

“Building truly inclusive pathways in the insurance industry means creating opportunities from the boardroom to our supply chains,” said Assemblymember Elhawary. “We’ve seen incredible work happening already, and now is our opportunity to continue pushing forward, put what we’ve learned into action, and create economic impact for all Californians.”

“California’s diverse businesses have the talent and experience to compete at the highest levels,” continued Assemblymember Mark González. “Opening more doors to that talent strengthens our economy and helps the insurance industry better serve the communities we represent.”

Senator Lola Smallwood-Cuevas who represents District 28 where the Summit took place also added words of support: “Economic opportunity grows when talented businesses can compete on a level playing field. Connecting diverse businesses to decision-makers creates pathways to good jobs, stronger communities, and an insurance marketplace that works for more Californians.”

The Summit’s keynote plenary was moderated by Insurance Diversity Task Force Chair Vikita Poindexter, and included a fireside chat focused on the power of inclusive governance. Among the Summit keynote speakers was Melinda Yee Franklin, Board Director of Invest Ahead – a non-partisan forum of institutional investors, asset managers, private equity firms, and corporate leaders representing more than $8 trillion in assets under management. Franklin was joined by Chandara K. Phanachone, Chief of the Department’s Office of Insurance Diversity and Innovation that was created by Commissioner Lara in 2024 to spearhead greater equity and innovation across the state’s multi-billion-dollar insurance industry.

“Inclusive governance brings more experience and perspective into the rooms where important decisions are made. Broadening the talent around the table can strengthen decision-making and deepen an organization’s understanding of the customers and communities it serves,” said Melinda Yee Franklin, Board Director of Invest Ahead.

Following the keynote, attendees engaged in a series of sessions where speakers shared their tips and strategies on the topics of contracting with insurance companies and the State of California; leveraging artificial intelligence while safeguarding personal data; understanding how to access multiple types of funding options to scale and sustain their businesses; and participating in business matchmaking roundtables to connect them to upcoming procurement opportunities from insurance companies and public sector agencies. 

Imprinting Our Impact: Turning Outreach into Results

“The data shows that outreach matters. But behind every number is an opportunity — a business getting a chance to compete, a new voice entering a boardroom, or an insurer building a stronger connection with the people it serves,” said Commissioner Lara. “For me, this work has always been about more than representation. It is about opportunity, fairness, and making sure California’s insurance marketplace benefits from the full strength of its communities. These findings show us where progress is being made, where gaps remain, and where we can keep pushing for meaningful change. Closing those gaps requires insurance companies to do more — more outreach, more engagement, and more effort to open doors for diverse businesses and leaders who have too often been overlooked. We can’t allow gains in some areas to distract from where we are falling behind, but I believe the progress we have made gives California a strong foundation to carry this work forward.”

“I am deeply grateful to the members of our Insurance Diversity Task Force and our dedicated Department staff who have worked tirelessly, year over year, to bring this Summit to life. Their leadership, commitment, and partnership have helped turn our goals into action and created opportunities that will continue to make a difference across our state,” Commissioner Lara concluded.

About the Office of Insurance Diversity and Innovation

Created by Insurance Commissioner Ricardo Lara, the Office of Insurance Diversity and Innovation is home to the longstanding and nationally-recognized Insurance Diversity Program and the first-ever Insurance Innovation Program. The Office is dedicated to prioritizing the Department’s consumer protection mission by spearheading research, equitable data-driven policy solutions, industry-wide engagement, and thought leadership on diversity and innovation in California’s insurance industry. For more information, visit www.insurance.ca.gov/diversity.

About the Insurance Diversity Summit

The 2026 Insurance Diversity Summit is a free event hosted by the California Department of Insurance. As part of the Department’s broader consumer protection mission, the Summit brings together insurance industry leaders, diverse businesses, policymakers, and community leaders to expand opportunity, share expertise, strengthen relationships, and advance supplier and board diversity within California’s insurance marketplace.

For more information, visit www.tinyurl.com/2026DivSummit.

Media Notes:

• 2026 State of Board Diversity in California’s Insurance Industry Factsheet
• 2026 States of Supplier Diversity in California’s Insurance Industry Factsheet
• Boards lacking diversity: In 2025, Department data indicates there were more insurance company boards with zero diverse members (gender or race/ethnicity): 15 percent, up from 9 percent in 2023. Specifically, more boards had zero women representation (19 percent, up from 16 percent in 2023) and more boards had zero racially/ethnically diverse members (36 percent, up from 28 percent in 2023).
• Board diversity in comparison to U.S. population: The percentage of the U.S. population identifying with each racial/ethnic group is 13.5 percent Black/African American, 7.2 percent Asian/Pacific Islander, 20.5 percent Hispanic/Latino, 2.1 percent Native American. The percentage of the U.S. population identifying with other diverse groups is 9 percent LGBTQ, 6 percent veteran, 2 percent disabled veteran, and 14 percent person(s) with disabilities.

# # #