Regulators Begin ‘Personal’ Discussion Of Race And Insurance

Tennessee Insurance Commissioner Hodgen Mainda delivered a simple, eloquent message for his colleagues: "This is personal."

An African American, Mainda spoke passionately about what the insurance industry needs to contribute to the national movement toward a colorblind society. He addressed regulators Thursday during the initial meeting of the National Association of Insurance Commissioners' Special Committee on Race and Insurance.

"This is upholding the dignity and sanctity of human life," said Mainda, a native of Nairobi, Kenya, who moved to Tennessee in 1997. "And that's the way that we need to approach it. Put the politics aside. This is about human beings and being inclusive and being accepting of people for who they are."

The two-hour meeting, held virtually, established the committee's five work streams and the co-chairs of each work group. They include:

1. Research/analyze level of diversity and inclusion within and access to the insurance industry and insurance products. Make recommendations on action steps. Co-chairs: Hodgen Mainda and My Chi To, executive deputy superintendent of the Insurance Division, New York.
2. Research/analyze level of diversity and inclusion within the NAIC and state insurance regulator community. Make recommendations on action steps. Co-chairs: Kentucky Insurance Commissioner Sharon Clark, and Illinois insurance Director Robert Muriel.
3. Examine and determine which practices or barriers exist in the insurance sector that potentially disadvantage people of color and/or historically underrepresented groups in the following lines of business:

• P&C co-chairs: Kansas Insurance Commissioner Vicki Schmidt and Connecticut Insurance Commissioner Andrew Mais.
• Life insurance and annuities co-chairs: New Jersey Insurance Commissioner Marlene Caride and Wisconsin Insurance Commissioner Mark Afable.
• Health co-chairs: Pennsylvania Insurance Commissioner Jessica Altman and California Insurance Commissioner Ricardo Lara.

Four Charges

The NAIC Executive Committee established the special committee this summer and gave it four charges and instructions to report back by the end of the year. Ray Farmer, South Carolina insurance commissioner and 2020 president of the NAIC, said the work will take much longer than that.

"We're playing the long game here and our work over the next few months will merely set the stage for the real work to come," Farmer said. "The role of the special committee in 2020 is to evaluate key areas of focus, provide initial conclusions and findings, and most importantly, perhaps, provide recommendations on how we can structure our engagements on these matters going forward to ensure that we're being effective, inclusive and transparent."

The committee's four charges are:

1. Conduct research and analyze the level of diversity and inclusion within the
insurance sector;

2. Engage with a broad group of stakeholders on issues related to race,
diversity, and inclusion in, and access to, the insurance sector and insurance
products;

3. Examine and determine which current practices or barriers exist in the
insurance sector that potentially disadvantage people of color and/or
historically underrepresented groups; and

4. Make recommendations to the Executive Committee and membership by year
end regarding steps: (a) both insurance regulators and the insurance industry
can take to increase diversity and inclusion within the sector; (b) that should
be taken to address practices that potentially disadvantage people of color
and/or historically underrepresented groups; and (c) to ensure ongoing
engagement of the NAIC on these issues through charges to its committees,
task forces and working groups.”

Minority Outreach

The first meeting of the committee was devoted to public comments, with some regulators sharing the successes they have had in their states.

Louisiana has been a leader in minority outreach programs and expanding career opportunities in insurance for communities of color, said Insurance Commissioner Jim Donelon.

Working through its Department of Diversity and Opportunity, Louisiana insurance regulators helped develop an insurance program with a concentration in risk management at Southern University, a historically Black college in Baton Rouge, La. Another program, via partnership with the Big I, gives minority students in 14 high schools and universities a chance for internships and job shadowing experiences, Donelon said.

"We don't just talk the talk in our state," he said. "We have a guideline that is monitored by the legislative auditor that measures each state state agency for its diversity in minority involvement in its workforce."

Several trade associations spoke and assured the committee that their members are supportive of the committee's goals.

“Our common goal should be a modernized regulatory framework that recognizes and incentivizes new and innovative methods of expanding access to Americans across the entire socio-economic spectrum,” said Susan Neely, president and CEO of the American Council of Life Insurers.

She advocated for four key strategies based on access, diversity, education and investment.

'Talent Retention And Acquisition'

Wayne Chopus, president and CEO of the Insured Retirement Institute, outlined a number of actions that IRI has undertaken, including establishing a board of directors working group; establishing a steering committee comprised of more than 20 diversity, equality and inclusion experts from IRI member companies; and identifying the initial work that will be addressed.

Next steps will be to establish criteria to measure progress and drive adoption of identified best practices.

“Our initial focus will be on underrepresented minority groups with a special eye toward the unique needs of the Black community, and we’ll be particularly focused on talent retention and acquisition for this population,” Chopus said.

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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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.