California Department of Insurance releases first-in-the-nation survey of insurance company procurement from diverse suppliers

News: 2013 Press Release

SACRAMENTO, Calif. - Insurance Commissioner Dave Jones announced today the results of a first-in-the-nation survey of supplier diversity in the insurance industry. The reports of California's largest 206 insurance companies were posted on the Department of Insurance website today. The reports reflect that a majority of insurers are taking steps to increase efforts around supplier diversity.

According to the most recent statistics from the Minority Business Development Agency, one-fifth of the nation's minority-owned businesses are located in California. According to a study commissioned by American Express, with just over 1.1 million women-owned businesses, California is home to the largest number of women-owned businesses.

"When you consider the percentage of minority- and women-owned businesses in California and the size of the insurance economy in California with $123 billion in annual written premium, it's encouraging to see that 150 companies currently have a supplier diversity statement or are committed to developing one," said Commissioner Jones. "We look forward to watching the relationships between California's robust insurance industry and the state's diverse businesses grow."

Interested parties are encouraged to visit http://www.insurance.ca.gov/diversity-new/3-dc/ to view the reports, which includes each company's:

• Supplier diversity statement
• Outreach and communications to diverse businesses
• Support for organizations that promote or certify diverse businesses
• Procurement contact for interested diverse businesses
• Charts detailing procurement from diverse businesses

"The goal of Assembly Bill 53 was to encourage competitive business opportunities for all Californians. Insurers are uniquely positioned to build relationships within the communities they serve through the development, inclusion and use of diverse businesses. This year set the baseline for supplier diversity in the insurance industry - we're excited to see a good number of insurance companies currently focused on supplier diversity, and we hope to see an increased number of partnerships between insurance companies and diverse businesses when insurers report again in 2015. I'm very appreciative of Insurance Commissioner Jones and the insurance industry for making this first report come to life," said former Assemblymember Jose Solorio, author of AB 53.

"We are excited about the reports and the information provided by the insurance carriers. The information provides new opportunities both for California's emerging and diverse businesses and for insurance companies seeking increased creativity and competition among their suppliers. We are especially encouraged by the insurance companies that reported that they will build a supplier diversity statement in the next 12 months, as this symbolizes a positive step forward for supplier diversity in the insurance industry," said Melinda Guzman, Chair of California's Insurance Diversity Task Force.

The survey is a result of the passage of Assembly Bill 53 (Solorio 2012) which requires insurance companies to report on the company's procurement efforts from minority- women- and disabled veteran-owned business. All companies that collect $100 million or more in California premiums were mandated to report.