NU Online News Service, March 8, 3:53 p.m. EST

WASHINGTON--In order for insurers to succeed and grow, they must foster an employee and client base including the handicapped and persons with sexual, racial and ethnic diversity, a Chubb executive said.

Harold L. Morrison Jr., executive vice president and chief global officer for the Warren, N.J.-based property and casualty insurer, made his remarks at the Diversity Luncheon that took place during last week's Independent Insurance Agents & Brokers of America Legislative Conference and Convention held here.

To succeed and prosper, Mr. Morrison said companies have to pay greater attention to the issue of ethnic diversity. He said the issue does not simply concern hiring, but also developing a business and employee base that reflects the type of clients the company is dealing with or plans to deal with in the future.

"Today, companies can't do without attracting and retaining the very best talent available and the broadest pool available," said Mr. Morrison. "And insurers like Chubb, who depend on independent agents and brokers to sell our products, can't do that without extending a hand to diverse partners who have insights into relationships that we don't."

Mr. Morrison said three things have changed since he began in the insurance industry back in the 1980s:

o Diversity programs no longer lack focus and specificity, and where once they were concerned with just attracting women and minorities, they now have a broader range of ethnic and social views concerning who they want to attract, including people who are gay, handicapped and from diverse ethnic backgrounds.

o Secondly, demographic shifts have made the question of diversity a "business imperative," with the aim of protecting profit centers and looking for areas of expansion.

o Third, companies need to respond to customer expectations, and without taking into consideration questions of diversity, businesses can expect to lose business, while those that have dealt with the issue stand to become more profitable companies.

"Diversity and innovation are tied hand in hand," he noted.

"If a company does not value diversity, the company loses, and no one wants to be with a loser," he remarked.

Growth into new markets must have diversity as their foundation, he continued, and it is important for that business to first make those moves at home before they consider expanding globally, said Mr. Morrison.

A company that cannot be comfortable at home with diversity will not be able to deal with the issue on the global stage, he advised.

Companies, he said, want to deal with other companies that mirror themselves. He also called it a practical matter, because companies need people on the ground that have a diverse background to deal with a diverse marketplace. He reasoned that these individuals have insights into customer expectations, and no company will be able to succeed without addressing that customer issue.

Concerning growth areas, he said minority-owned firms are growing contributors to the economy and their growth is a compelling story for addressing the need to have a diverse workforce.

He noted that Chubb has dealt with this issue for decades, recruiting, developing and building alliances with diverse groups. Chubb continues to actively pursue both new markets and new talent, he said.

For students, he noted, this is a time to enter a marketplace well prepared with great opportunities available to them.

He said he is encouraged by the change he has seen in his time in business and that he expects that change to continue for the benefit of agents, insurers and the industry generally.