Insurance Commissioner Dave Jones Announces Legislature Passes Bill To Encourage Diversity In Insurer Procurement
News: 2012 Press Release
Insurance Commissioner Dave Jones today announced that the California State Legislature has passed AB 53, authored by Assembly Member Jose Solorio (D-Santa Ana). The measure was strongly supported by Commissioner Jones and the Department of Insurance.
AB 53 would require each California admitted insurer with California premiums of $100 million or more to submit a report to CDI on its efforts to procure minority, women, and disabled veteran-owned business enterprises, among other relevant information. This report would also include the insurer's current outreach, promotion, and communication efforts and it would be accessible to the public through the CDI website for informational purposes.
"California's minority women and disabled veteran-owned businesses will grow and prosper if they can get a foot in the door of California's largest insurance companies," said Commissioner Jones. "Insurance companies will benefit from the services and goods provided by these businesses. I believe AB 53 is a step in the right direction and I applaud Assembly Member Jose Solorio for authoring this important business empowerment bill."
Commissioner Jones believes expanding small businesses - especially diverse and disabled veteran-owned businesses - will help turn our economy around. These efforts are similar to those Commissioner Jones took his first day in office to reinvigorate CDI's Community Investment Opportunity Network (COIN) program. He also believes additional efforts to provide further opportunity to create community partnerships between the insurance industry and California's talented minority women and disabled veteran-owned businesses have strong merit and should be further explored and supported, including measures such as AB 53.
According to the U.S. Small Business Administration and the Center for Women's Business Research, diverse business enterprises constitute one of the fastest-growing segments in the U.S. economy, with minority-owned businesses generating an estimated $1 trillion in annual revenue. Minority-owned businesses also employ nearly six million workers, while women-owned businesses employ about 19 million people and generate $2.5 trillion in annual sales. Further, with more than 25 million veterans in the country, one in seven small businesses is veteran-owned.
"I urge Governor Jerry Brown to sign this important measure that would help the state's small businesses, especially diverse and disabled veteran-owned businesses, expand and grow," said Commissioner Jones.
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 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 www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.