‘It’s Up To Us:’ LIMRA Panel Debates Future Of Inclusion Efforts

George Nichols was a little boy watching his mother pay the insurance man $2.68 a week. He later headed up the National Association of Insurance Commissioners' effort to study race-based premiums.

This year, Nichols' birthday fell on May 25, the day George Floyd's death in police custody sparked months of protests nationwide.

As an African American and leader in the insurance industry, "mine's personal," Nichols said of diversity and inclusion efforts. He spoke Tuesday during a panel discussion titled "Diversity, Equity and Inclusion: Leading the Change" at the LIMRA virtual annual conference.

The "change" part is not going to be a quick campaign, he said. As president of The American College of Financial Services, Nichols put forth a four-point plan to address wealth inequality.

"If we're really going to fix Black America, it is going to take decades," Nichols said. "And it will require us to address this wealth gap that has existed."

The American College plan is primarily focused on Black women, and Nichols explained why: 89% of Black homes led by a single parent are headed by women, while 68% of Black college graduates are women.

"We said if they're having the children, they're raising the Black males that we have to deal with, how do we make sure we're helping them," Nichols said. "Whether it's their financial situation at home, whether it's how to start a business, whether it's how to run your business better, we should focus on them because they are the gatekeepers. They are the culture carriers of the Black community."

'A Powerful Outcry'

Tim Ryan is senior partner at PricewaterhouseCoopers, and has been involved in expanding diversity efforts for a long time. He co-founded the CEO Action for Diversity and Inclusion in response to the killing of unarmed Black men in the summer of 2016.

Starting with 112 companies in 2017, today the effort is up to more than 1,300 companies representing more than 33 million employees, Ryan said. Following George Floyd's death in Minneapolis, "there was a powerful outcry by many CEOs, which is 'I want to do more more,'" he added.

"So we invited every member to join a group that will be called CEO Action for Racial Equality," he explained. "We give every company the ability to contribute one or more fellows for a two-year, full-time fellowship to be part of a powerful startup, to work on policy policymaking around racial equality."

All of the panelists -- which included Lorraine Hariton, president and CEO of Catalyst, and moderator Michael Hyter, chief diversity officer for Korn Ferry -- doubted the persistent claim that minority candidates cannot be found.

There are about 100 historically Black colleges and universities, and dozens of Hispanic and Latino schools, Ryan noted.

"In many industries, it's not a pipeline problem. There are some and that's fair, but the talent at the entry level is there," he said. "And we have a robust pipeline out there. We just need to do a better job of looking."

The bottom line should be the best motivator, speakers agreed.

The Federal Reserve issued a report saying the racial wealth gap will cost America between $1 and $1.5 trillion in Gross Domestic Product over the next eight years, Nichols said.

"That is about $60 billion to $70 billion a year of more GDP that you can create in this country in the Black community alone," he said. "That will benefit your company. Now go ask your team to help you figure out how you can be a part of that."

InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]. Follow him on Twitter @INNJohnH.

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