Part I of II: Why aren't there more Black Professionals in leadership roles in the Insurance Industry?

By Lee Nunery & Susan Johnson

One of the outcomes of the demands for racial equity over the past few months is the heightened examination of diversity progress within corporate America and specifically within the insurance industry.  Organizations around the globe asserted their abhorrence of racism and their commitment to equity; many of them vowed to work harder and do more.

We are two colleagues with a long professional history, and we have a shared interest in equitable outcomes for diverse talent in insurance careers. We are compelled to use this historic moment in time and look at the impact of diversity in the industry from different angles: Susan from the D&I perspective and Lee from a business management viewpoint.

We are motivated by the fact that there are several examples of organizations working to advance D&I results for people of color throughout the industry. For instance:

- Over 60 insurance industry CEOs have pledged to engage in the actions asserted by the CEO Action for Diversity & Inclusion;

- The National African American Insurance Association (NAAIA), which celebrated its 20th anniversary in 2019, is committed to achieving greater Black/African American representation in the industry through advocacy and national and local programming. Susan is a member of the NAAIA Board of Directors, and Lee authored the groundbreaking research study called “ The Journey of African American Insurance Professionals , commissioned by Marsh and sponsored by NAAIA; 

- Talent initiatives like Gamma Iota Sigma, Insurance Careers Month, Million Women Mentors IICF Women In Insurance and DiveIn have incorporated diversity, equity, and inclusion strategies into their governance, programming and membership platforms;

- Industry associations such as the Independent Insurance Agents and Brokers of America, Inc., the American Property Casualty Insurance Association  and the Risk Management Insurance Society have incorporated diversity as a strategic agenda item for their organizations;

- Many insurance companies have appointed Chief Diversity Officers, or similar roles, who are responsible for crafting and implementing D&I strategies. Additionally, several insurance company Employee Resource Groups (ERGs) have taken the onus of presenting programs, sponsoring panel discussions, and leading conversations with company executives on a myriad of pressing issues, including how their respective organizations should respond to needless killing of George Floyd and other people of color.

The paucity of presence of African American senior leaders in insurance has been well documented in The Journey Study, Hollmer’s April 2016 article "For Insurance Industry, Diversity Remains Elusive at the Top in Carrier Management, and IIABA's Agency Universe Studies.

The efforts to address underrepresentation through these well thought out and well-intentioned initiatives listed above are notable. Yet, one emerging question cannot be answered: In the midst of increased focus on the history of Black/African Americans in the United States and with greater desire of insurance entities to increase the representation of their workforce, why aren't there more Black executives in leadership* roles in the insurance industry?

So, we thought we’d combine our networks to crowd source responses and thoughts to the questions. We are inviting you to provide your perspectives and experiences on the question, and as you do, please consider these broad questions:

•          Is Black talent knowledgeable about and inspired to enter the insurance industry? How did you enter the insurance industry?

•          Once they enter the industry, what supports or hinders their progress?

•          For Black professionals at leadership levels, what enabled their success?

•          Does the function matter (e.g., Staff Functions, Claims, Operations, Underwriting)? 

•          Does the branch of the insurance industry they work make a difference (e.g., Carrier, Broker, Agency, Third party, Professional Services)?

•          What organizational strategies are required, helpful or are missing?

After we hear from you on this question, we will summarize the key themes, play them back and then ask you: What ACTIONS can be taken? So, for now, let’s start with the WHY... Part 2 will be focused on the WHAT.

*For the purposes of this question, you can define “leadership levels” as you like. Some guidelines might be at least the Director/VP level, within 3 levels of the CEO in a large organization, or reporting to the CEO/owner for a smaller sized organization, base salary of $125,000+, etc.

Chime in!  

Lee Nunery & Susan Johnson