Review of Diversity and Inclusion at America’s Largest Insurance Companies (EventID=115142)

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Connect with the House Financial Services Committee Get the latest news: https://democrats-financialservices.house.gov/ Follow us on Facebook: https://www.facebook.com/HouseFinancialCmte Follow us on Twitter: https://twitter.com/FSCDems ___________________________________ On Tuesday, September 20, 2022, at 2:00 p.m. (ET) Diversity and Inclusion Subcommittee Chairwoman Beatty and Ranking Member Wagner will host a hybrid hearing entitled, “Review of Diversity and Inclusion at America’s Largest Insurance Companies." ___________________________________ Witnesses for this one-panel hearing will be: • Eloiza Domingo, Chief Diversity Officer and Vice President, Human Resources, The Allstate Corporation • Chlora Lindley-Myers, Director, Missouri Department of Commerce and Insurance • Dr. Leroy D. Nunery II, President, Evolution Advisors LLC • Kimberly Ross, Senior Vice President, Federal Relations, American Council of Life Insurers (ACLI) • Baird Webel, Specialist in Financial Economics, Congressional Research Service ___________________________________ Background This hearing will review the findings and recommendations of a report prepared by the Majority staff of the Committee on Financial Services entitled, “Diversity and Inclusion: Holding America’s Largest Insurance Companies Accountable.” Primarily regulated by states,1 property and casualty (P&C) and life insurance firms help protect households in the face of various hardships and tragedies, from petty theft to major natural disasters and even the loss of loved ones. P&C insurance helps to protect an individual’s property, including homes, cars, and businesses, and life insurance covers the risk of the death of a policyholder, as well as provides annuities or long-term investments to help protect a policyholder from outliving their income. To do so, insurance companies collect premiums from consumers and invest those premiums to pay out claims when policyholders have insured losses. Collectively, the insurance industry possesses over $5.8 trillion in assets. Insurance companies often make long-term investments in important sectors of the economy, including education, infrastructure, housing and real estate, farming, and businesses across the country, ultimately helping to finance critical projects that help communities thrive. Property and casualty (P&C) and life insurance firms are prevalent in the lives of nearly every adult in the U.S. While no one is required to have a bank account or make investments, it is often a requirement to obtain certain types of insurance. For example, almost all states require consumers to obtain car insurance in order to register and drive a car; mortgage holders require borrowers to maintain homeowners insurance; many landlords require renters’ insurance, and federal law requires those who own homes in federally designated high-risk flood zones and have federally backed mortgages to have flood insurance. The insurance industry also plays a critical role when national emergencies arise; for example, insurers provide business interruption coverage that includes acts of terror, the availability of which is backed by the federal Terrorism Risk Insurance Program that was established in the aftermath of the 9/11 terrorist attacks. Given the reach and importance insurance companies have on all communities and people across the country, the extent to which such companies prioritize diversity and inclusion can have wide-reaching impacts. Committee Staff Report on Insurance To review the diversity within the P&C and life insurance industries, Chairwoman Maxine Waters and Diversity and Inclusion Subcommittee Chair Joyce Beatty sent a letter to the 27 largest insurance groups, as determined by premiums written. The letter requested diversity data for 5 years, from 2017 to 2021, including demographic data on its board, staff, and executive leadership. In an expansion of diversity information previously collected by the Committee (e.g., race, ethnicity, gender), the survey sent to insurance companies asked about LGBTQ+ and disability diversity at multiple levels. The letter also requested information on procurement, internal policies and practices meant to support greater diversity and inclusion, and challenges in pursuing diversity and inclusion in this industry. Topics included in the request were the following: 1. Workforce Diversity 2. Executive Leadership Diversity 3. CEO Diversity 4. Board Diversity 5. Supplier Diversity 6. Investments of Assets 7. Practices to Support Diversity and Inclusion Report Findings The key findings from Committee Staff are as follows: Workforce Diversity • Among America’s largest insurance companies, there was little change in racial, ethnic, and gender representation among employees over the five years queried (2017-2021). • In 2021, the largest insurance companies had a lower percentage of... Hearing page: https://financialservices.house.gov/events/eventsingle.aspx?EventID=409763