P&C groups' CSR, charity work is being shaped by millennial preferences
McKinsey's 2019 report found that charitable giving in the industry has held steady around $560-$600 million annually.
In partnership with the Insurance Industry Charitable Foundation (IICF), McKinsey and Company recently released its ”Charitable Giving in the Insurance Industry” report update for 2019, identifying a number of growing philanthropic trends in the industry.
With consideration of year-over-year trends, McKinsey’s 2019 update found that charitable giving in the industry has held steady around $560-$600 million annually, with an emphasis on education, health, and social services and community.
Diving deeper, the McKinsey report analyzed how insurance companies’ are performing charitable works and shaping their corporate social responsibility (CSR) programs, discovering a few developing trends.
Among the report’s main conclusions, McKinsey highlights an increased willingness in the industry to work together toward common philanthropic goals. From 2015 to 2019, McKinsey’s survey data found that the industry’s desire to work toward a single cause increased from 17% to 33%.
Millennials’ demonstrated influence on industry CSR
A second key finding of the 2019 update evaluates the role of millennials and their influence in shaping insurance industry CSR programs. In the report, McKinsey says insurers are increasingly responding to social trends centered around “personal passion” and volunteerism— causes that are increasingly important to millennials in the workforce.
McKinsey concludes that millennials have a demonstrated influence on the types of charitable engagements companies pursue within their communities. Insurers have reshaped their philanthropic focus to increasing volunteering opportunities, recognizing the idea that millennials prefer to work with companies directly involved in charitable efforts and activities rather than those making only monetary donations.
Additionally, the report concludes that the measurement of charitable giving increased from 26% in 2015 to 41% in 2019. McKinsey says this shift reflects a developing trend of more companies using key performance indicators to evaluate the impact of their philanthropy.
McKinsey’s 2019 report is based on responses from P&C companies, and for the first time since 2011, life insurance and wealth management segments of the industry. The report was first released at IICF’s 2020 Media Day on Feb. 11, 2020, in New York City.
Find a full version of McKinsey and Company’s 2019 “Charitable Giving in the Insurance Industry” report here.
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