SB 534 Would Require Largest Insurers to Report Supplier Diversity and Governing Board Diversity
Contact: Bruce Mirken, Greenlining Institute Media Relations Director, 510-926-4022 (office), 415-846-7758 (cell)
SACRAMENTO – Today the Senate Insurance Committee passed legislation to promote diversity in California’s insurance industry, SB 534, introduced by Sen. Steven Bradford (D-Gardena). The measure, which was supported by testimony from the California Department of Insurance, members of the department’s Insurance Diversity Task Force and The Greenlining Institute, would require the largest players in the state’s $310 billion insurance industry to report on their level of contracting with businesses owned by women, people of color, veterans and LGBT individuals. It would also require insurers to report on the diversity of their governing boards and set goals for supplier and board diversity.
“SB 534 will ensure that California’s insurance providers think about diversity when they make procurement decisions and choose their boards of directors,” said Greenlining Institute Health Equity Director Anthony Galace. “California leads the nation in diverse-owned businesses, which creates the ideal environment and opportunity to advance diversity, equity, and inclusion among insurance companies and other large businesses.”
Data collected by the Department of Insurance in 2017 showed that 80 percent of major insurers’ governing board seats were held by men while just 12 percent were held by people of color. Of nearly 2,400 total board seats, only 14 members self-identified as LGBT, while 13 percent of insurance companies reported zero women and 35 percent reported zero persons of color on their boards.
SB 534 is modeled on a number of prior, highly successful diversity initiatives based on reporting and transparency, which have stimulated large increases in corporate contracting with California’s diverse businesses. The bill now moves to the Judiciary Committee.
For further background on the bill, see Anthony Galace’s.