California Insurance Commissioner Dave Jones has sent letters to the chief executive officers of about 50 California-licensed insurance companies encouraging them to increase the diversity of their governing boards.
The letters requested each company either disclose its intent to create a governing board diversity policy or develop a strategy or action plan to enhance the diversity of its governing boards within a specified timeframe.
In 2014, Commissioner Jones issued a governing board diversity (“GBD”) survey to examine the state of diversity within insurer governing boards.
“Board diversity helps improve corporate accountability and enhance financial performance,” said Commissioner Jones. “I am committed to supporting efforts that expand opportunities for diverse representation on corporate boards. Independent studies continue to demonstrate that enhanced board diversity results in better corporate performance, as well as increased economic opportunities for diverse business communities.”
In March 2018, Commissioner Jones convened a GBD summit, bringing together insurer CEOs and board members to share challenges and best practices for advancing governing board diversity within the insurance industry.
The initial companies selected as part of Commissioner Jones' GBD engagement campaign were chosen because they do not have women or ethnic minorities on their governing boards.
Over the coming months, the department said, it will track the companies' progress and offer them tools and resources to help enhance diversity on their corporate boards.
Steven A. Meyerowitz
Steven A. Meyerowitz, a Harvard Law School graduate, is the founder and president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. He may be contacted at [email protected].