California Insurance Commissioner Ricardo Lara recently announced the launch of the inaugural Insurance Diversity Index, a groundbreaking benchmarking tool designed to foster diversity, equity, and inclusion (DEI) in California’s insurance industry. Initial findings of the trailblazing initiative were unveiled at the 2023 Insurance Diversity Summit.
“The Insurance Diversity Index represents a significant step forward in our ongoing efforts to create a more equitable and inclusive insurance industry,” said Insurance Commissioner Lara. “By providing a clear benchmark, we can inspire positive change and ensure that California consumers are served by companies committed to diversity and inclusion.”
The Insurance Diversity Index – spearheaded by the Department’s nationally-recognized Insurance Diversity Initiative and its Insurance Diversity Task Force – is a crucial initiative aimed at increasing transparency, measuring progress, and encouraging accountability within the insurance sector. By gauging insurance companies’ commitments to policies and practices that advance DEI in three key areas – diversity in the corporate boardroom, supplier diversity, and California community impact investments – the Index provides valuable insights into the industry’s efforts to promote diversity and inclusivity.
“Transparency and measurement are essential in holding the insurance industry accountable for its diversity commitments,” emphasized California Attorney General Rob Bonta. “The Insurance Diversity Index will empower consumers and stakeholders with information to make informed choices and drive progress.”
Commissioner Lara’s sentiments are shared by leaders on the Department’s Insurance Diversity Task Force, including newly-elected Chair Mark Morales who said: “This Index means that consumers can be better informed about their spending power, and it encourages insurance company leaders to match their intentions with actions.”
Key Highlights of the Insurance Diversity Index
Levels of Distinction: Using a 100-point scale, companies can earn Bronze (61-70 points), Silver (71-80 points), Gold (81-90 points), or Platinum (91 – 100+ points) levels of distinction.
Setting the Tone at the Top: High-performing companies prioritize diversity, especially in their corporate boardrooms, demonstrating a commitment to intentional policies and practices.
Investing in Supplier Diversity: Leading companies recognize the value of supplier diversity and maintain robust programs and policies to support diverse businesses.
California Community Impact: Companies are evaluated on their contributions to historically underserved communities in California.
The full 2023 Insurance Diversity Index Report was made available to attendees at the Insurance Diversity Summit and members of the public can download the report at www.insurance.ca.gov/diversity/.
The Insurance Diversity Initiative is dedicated to advancing diversity in corporate governance and increasing procurement from diverse businesses within California’s insurance industry.
