The Journey of African-American Insurance Professionals

The Journey of

African-American

Insurance Professionals

DIVERSITY & INCLUSION SEPTEMBER 2018

The Journey of

African-American

Insurance

Professionals

CONTENTS

1 Introduction

2 The Value of Diversity

8 Recruiting African Americans Into the

Insurance Industry

10 Mentoring Programs Seen as a

Key to Success

12 Recommendations: Taking Action

16 Conclusion

17 Appendix

Marsh • 1

Introduction

It is generally acknowledged that there is a significant deficiency throughout the

insurance industry in African-American leadership and other levels of employment.

As the demographics of the US change, becoming more diverse in terms of race,

ethnicity, socio-economics, age, and gender, the insurance industry’s executive and

management ranks — from insurers to agencies and beyond — are not reflective of

those emerging trends.

And yet, African Americans have been involved with insurance

since the late 17

century. In 1693, Cotton Mather noted in his

diary the efforts of “poor Negroes” to provide for the less fortunate

among them, including collecting money to ensure decent burials.

In the post-colonial period, several mutual aid societies, such as the

Free Aid Society, were formed in Philadelphia. These entities were

essentially savings and insurance institutions that “paid benefits

to widows and to members who had fallen on hard times… [and]

stressed moral living and thrift.” As many as 42 large, black-owned

insurance companies existed in the 1920’s.

Often, assumptions about African Americans’ underrepresentation

in the insurance industry revolve around issues such as

unconscious bias, a lack of C-suite executives who can “pull them

up the ladder,” nepotism and favoritism in the hiring process, or a

lack of connections. Such assumptions are only pieces of a larger

puzzle. A clearer picture of the African American experience in the

insurance industry is needed.

The Journey of African-American Insurance Professionals is a

groundbreaking study commissioned by Marsh and conducted by

Dr. Leroy Nunery III, with participation from the National African

American Insurance Association (NAAIA) and numerous others

from across the insurance industry. Primary research for the study

included 312 online survey responses, 25 interviews, and seven

focus groups conducted over a six-month period.

The study seeks to understand why African Americans remain

underrepresented in the industry and what insurers, brokers,

other stakeholders, and individuals can do about it. Among the key

questions this study considers are:

• Why the low numbers of African-American

insurance professionals?

• What have been the primary challenges and successes for

African-American insurance professionals?

• Is the career experience of African-American professionals in the

commercial insurance industry unique because of race?

• What can companies do to attract and retain African Americans?

• How have diversity and inclusion programs influenced,

or otherwise affected, change for African-American

insurance professionals?

• Do mentoring and sponsorship matter in career development?

• What steps can individuals take to enhance their

career opportunities?

This study is intended as a “living document” that yields

context and content for ongoing and future diversity and

inclusion initiatives, provides an informed platform for

addressing issues of inclusion and exclusion, explores potential

lost opportunities for companies that do not actively pursue or

retain African-American talent, and finally, provides African-

American professionals with tangible information that could

improve or solidify their career prospects.

2 • The Journey of African-American Insurance Professionals

FIGURE

Agency stang breakouts by gender and ethnicity are generally comparable from

2014 to 2016

SOURCE: 2016 AGENCY UNIVERSE STUDY, FUTURE ONE COOPERATIVE EFFORT BY INDEPENDENT INSURANCE AGENTS & BROKERS OF AMERICA

IIABA AND INDEPENDENT AGENCY COMPANIES

The Value of Diversity

There are compelling, underlying ethical reasons for the insurance

industry to build diversity in its ranks. And at the same time, there

are compelling business reasons. A lack of visibility and connection

to the African-American community adversely affects its ability to

encourage diverse perspectives.

And yet, the underrepresentation of African Americans in the

insurance industry has been clearly documented and has

shown little change in recent years, as demonstrated by the

bi-annual Independent Insurance Agents Agency Universe Study

(see Figure 1).

The consequences for both African Americans and the industry

manifest themselves in several areas, including:

• Talent acquisition: Fewer candidates of color will enter the

industry if they perceive there is no opportunity to build

their careers.

• Talent development: If insurance organizations attract only

scant numbers of African-American employees, they will

struggle to understand, nurture, promote, and retain them —

fostering a cycle of underrepresentation.

• Innovation: Lack of diversity has been shown to limit

organizational innovation and product and service development.

In a highly competitive marketplace, the insurance industry

cannot afford to decelerate or reduce innovation.

• Target market growth: Minority communities and minority-

owned businesses are increasing in size. To serve a more diverse

customer base and boost market share, the insurance industry

itself needs to become more diverse.

Agency Principals/

Senior Managers

Non-Principal

Agency Managers

Non-Principal

Producers

Customer Service

Representatives

Other

80%

90%

70%

60%

50%

40%

30%

20%

10%

Men

Women

Caucasian/

Non-Hispanic White

Asian Indian/Other

South Asian American

African-American/Black

Latino/Hispanic

East Asian-American/

Paciﬁc-Islander

Native American or

Alaska Native

Marsh • 3

Fitting In: Career Experiences of

African-American Insurance Professionals

Acculturation

Acculturating, or “fitting into” the industry

or a specific company, is a driving force

for most African-American insurance

professionals, regardless of sector or

the position they hold. Acculturation,

or lack thereof, can be the reason for

success or failure. One’s ability to read

the environment and understand the

intangibles can determine his or her

future. Study participants were adamant

that at times race, favoritism, or nepotism

were the initial determinants for their

employment or promotion, hindering

them from fitting in. Acculturation may

not be a unique issue for African-American

insurance professionals, but one’s ability

to navigate the organization will often

determine one’s longevity in, and career

satisfaction with, the industry.

One respondent noted that: “African

Americans are judged differently and

therefore have fewer opportunities for

mistakes. We cannot however, use this

as an excuse not to be excellent.” It is

reasonable that if race is a factor, then

African Americans feel they are not

enabled to take risks, make mistakes,

or fail (see Figure 2). And if there are

mostly adverse consequences for these

actions, then career progress is likely to

be suboptimal. It is incumbent upon the

individual to simultaneously strive to fit

into an organization’s culture while also

trying to maintain their integrity and

sense of self. Insurers need to recognize

the cultural struggle for communities that

lie outside the dominant demographic,

and work to design an environment

that is comfortable for all colleagues to

succeed in. Acculturation requires both

accountability and an organizational

commitment to cultural competency.

Access to Opportunities

Access issues are closely related to

acculturation: Any limitations to exposure

are likely to stunt individual growth.

Leadership assignments, executive

training, and senior leadership positions

are predicated upon access, be it to

company resources, client meetings and

projects, interactions with senior leaders,

or peer social gatherings. Gaining access is

an iterative exercise: Given opportunities

to prove oneself that result in success or

failure can lead to more access.

Participants noted that because of the low

representation of African Americans in

senior positions and the paucity of mentors

or sponsors, they did not receive as many

opportunities to prove themselves as did

their white counterparts. Coupled with

underdeveloped or non-existent networks

within an organization, many participants

viewed their career choices more narrowly.

Gaining greater access to decision-

makers and sources of influence seems

independent of the size of the company or

the sector of the industry. Since there is no

playbook or “how-to manual,” the solutions

to lack of access must be tailored to meet

the needs of the individual professional.

FIGURE

African Americans given less room to make mistakes

SOURCE: MARSH

African-American professionals are allowed fewer opportunities to fail or make mistakes.

52%

53%

48% 47%

DISPROVING

MYTHS ABOUT

UPWARD MOBILITY

A large majority — 186 participants

either “strongly agreed” or

“somewhat agreed” — felt that

professional development,

certifications, and license

opportunities were equally

accessible to African Americans as

to their majority peers. This would

seem to disprove a myth

in the insurance industry that

African Americans were less

certified or educated than their

peers and therefore hindered in

their upward mobility.

FEMALE MALE

Strongly agree Somewhat agree

FEMALES MALES

4 • The Journey of African-American Insurance Professionals

Racism and Bias

Participants provided many insightful comments about racism

and racial bias, both as the main variable in determining how far

African Americans may progress in their insurance careers and as

a “moving target” that can be simultaneously overt and subliminal.

In short, the factors of racism and/or bias in the industry are

complicated and individualistically determinative.

One participant observed: “I believe the level of unconscious

bias that exists for African Americans leads more people to react

adversely towards this particular race of people. We are often

starting from way below benchmark before we even begin to

engage with a business partner, client, or colleague, and therefore

have to spend a lot of energy disproving their bias before we can

even get down to the business of what we came here to do.”

There were wide ranges of opinion on how race affected individual

career journeys. Can race be both an asset and a liability? Yes, and

depending upon individual circumstances, contexts, and character,

career arcs for African Americans in insurance are differently

shaped, differently timed, and quite distinctive.

Participants pointed to career events (for example hiring,

promotion, and new assignments) when either perceptions or the

reality of racial bias became an issue in the outcome. At times, the

occurrences were subtle or “unconscious,” and at other times clear

and evident, such as being left out of important meetings, social

events, or client-facing opportunities.

“Rarely do I encounter overt racism,” said one participant. “Most of

the time it’s people’s implied biases that hold African Americans,

females, and people of color back. Usually, the top of the house

(senior management) says all the right things, but it doesn’t get

practiced at the middle management level.”

And yet it was also stated by many individuals that even if their race

could be perceived as a detrimental factor, they learned how to

deal with it, strategize around it, leverage it, and succeed because

of that perception.

Obstacles

Study participants generally said they face many obstacles in

the insurance industry. Many individual contributors adopt

“risk averse” postures, possibly inhibiting their chances for

advancement and their organizations’ growth. According to one

survey respondent, “There is still a stigma that exists that an

error or problem by one African American is an indictment on the

entire race; a stigma that does not apply to Caucasians when a

single individual makes a mistake and it is considered an anomaly,

not a representation.”

A strong majority (70%) of survey respondents said they either

strongly or somewhat agreed that the obstacles for African

American were greater for them than for other minority groups

(see Figure 3). How individuals deal with expected limitations

seems to be a matter of perseverance and preparation.

FIGURE

Obstacles are seen as

greater for African Americans

than other minorities

SOURCE: MARSH

There are greater obstacles for African Americans in the

insurance industry compared to those for other minorities

or under-represented groups.

38%

13%

11%

32%

Neutral

Somewhat agree Somewhat disagree

Strongly agree Strongly disagree

Marsh • 5

“Most of the time

it’s people’s implied

biases that hold African

Americans, females,

and people of color

back. Usually, [senior

management] says

all the right things,

but it doesn’t get

practiced at the middle

management level.”

6 • The Journey of African-American Insurance Professionals

Primary Barriers to Success

Study participants were asked about the primary barriers to entry

into the insurance industry for African Americans (see Figure 4).

“Lack of exposure to the industry” and “lack of networks” were

the topmost perceived barriers, as compared to racial bias. While

race is an important factor in pursuing or being recruited to the

insurance industry, more important is the absence of information

about career opportunities through formal or informal networks,

college career placement offices, or accessibility of African-

American insurance professionals.

Successes and Challenges

for African-American

Insurance Professionals

So how have individuals negotiated and navigated their insurance

industry careers (see Figure 5)? More seasoned professionals (with

more than 20 years of experience) felt that individuals should be

assertive, or aggressive, in pursuing new experiences; continue

speaking up; promote their interests in learning more about the

business; become visible; and “actively manage” their careers.

One participant said, “If you do not have the ability to manage your

time, find another industry. If you cannot compartmentalize work

and home life, find another industry. If you do not have the ability to

follow the letter of the law as it pertains to insurance, find another

industry. If you cannot handle scrutiny, find another industry. If

you are not committed to doing the best job, find another industry.

Your decisions affect multiple facets of your field and the ripples of

your success and failure will garner attention.”

Early stage professionals (with less than 10 years of experience)

were more likely to feel that some responsibility for getting access

or building career paths rested with their employers.

FIGURE

Industry exposure is the top

barrier to entry into the insurance

industry for African Americans

SOURCE: MARSH

What are the primary barriers to entry into the insurance

industry for African Americans?

Lack of exposure to the industry

Lack of networks

Lack of experience

(e.g., internships, work/study jobs, first jobs)

Racial bias

Lack of educational preparation

Gender bias

Marsh • 7

FIGURE

African-American insurance professionals adopt multiple strategies for career success

SOURCE: MARSH

Communications

• Not learning the language and culture of the organization, or the “inside game.”

• Low level of regular or meaningful contact with senior management or influential persons

inside the organization.

Networks

• Lack of access to informal networks that can provide deep background on key players inside an

organization or industry.

Planning

• Reluctance to plan ahead, anticipate changes, and develop contingencies.

KEYS TO SUCCESS

CHALLENGES

Risk-taking: Willingness to take risks, such as new

assignments or unfamiliar areas or operations,

which lead to greater opportunities.

Cross-training: As noted by one respondent,

cross-training — from claims to underwriting

to loss control — breeds valued “breadth

of experience.”

Persistence: Demonstrating drive and an “I’ll

show you” attitude. Maintaining consistency in

performance and a pursuit of excellence.

Education: Pursuing professional development

opportunities, such as seminars, webinars, formal

and informal reading, licenses, and certifications.

Longevity: Staying employed in, and engaged in,

the insurance business.

Relationship management: Developing and

cultivating relationships within and outside of the

insurance industry.

Entrepreneurism: Willingness to create

entrepreneurial ventures, such as agencies

or spin-off businesses, that capitalize on

attained knowledge.

Self-advocacy: Active career management and

engagement. Understanding that each individual

can be empowered, through investment in their

relative and comparative strengths, to self-advocate.

8 • The Journey of African-American Insurance Professionals

Recruiting African Americans

into the Insurance Industry

Although there is a propensity for African-American professionals to remain in the industry

once a part of it, exposure to the industry seems to be an obstacle and stumbling block

against broader entry and greater interest, particularly among African-American college

graduates. Consider the example of a recent African-American college graduate who is

looking at career options. With few or no contacts in the insurance industry, few African

Americans visible in leadership roles, and no prior exposure to industry jobs, there is little

likelihood of that graduate seeking employment in the industry.

Study participants suggested several reasons for the industry’s low visibility in recruiting

on college and university campuses:

• Insurance organizations seek graduates with insurance and/or risk

management coursework.

• Risk management and insurance are not taught at most colleges and universities.

• Few, if any, insurance industry organizations target historically black institutions.

• Nepotism and favoritism run rampant in the insurance industry. Insurers seem to prefer

to hire friends, relatives, or other contacts over people they do not know as well.

The lack of “mutual accountability” for results in recruiting and hiring compounds the

challenges of talent identification. Senior executives (particularly in human resources and

talent development) must make recruitment and retention a top priority, measuring the

results of on-the-ground efforts. Somehow, the message of enhancing diversity gets lost

and there are few consequences for missing objectives. As one individual summarized:

“It must be the mindset of decision makers to emphatically ensure that their requirements

are invoked in the hiring process, from top to bottom, during the recruitment process.”

The Role of Diversity and

Inclusion Programs

Further complicating the issue of race

is that multiculturalism and diversity

have become the keywords used by

many employers to describe how they

deal with differences in race or ethnicity,

often conflating and obfuscating the

focus on race and ethnicity with diversity

in gender, socio-economic status, or

upbringing. It is uncertain how much the

diminishment of race as a primary factor

in changing corporate culture affects

the status or opportunities of African

Americans, but it appears to influence

how African-American insurance

professionals feel about how their

potential will be realized.

For those who believe that a lack

of diversity in the business brings

opportunity, being alone or being the

only individual of color can have benefits

as long as performance on the job is high.

The sense of being fortunate to fill a

diversity gap was especially reinforced if

there was clear C-suite commitment and

willingness to make the programs work.

This feeling of being an added bonus,

however, was limited in appeal: By and

large, the lack of diversity was viewed

negatively. “Certain areas of insurance

firms are harder to get into if you are a

person of color,” one participant said.

Several study participants said that

many senior African Americans have

not been advocates of fellow African

Americans through supporting their

career advancement and mobility. It is

possible that some African Americans

inside the industry are perpetuating the

lack of diversity, either because they are

not able, or are unwilling, to advocate for

greater diversity, or there is a sense of

isolation that inhibits an individual from

being a more forceful advocate.

Most study interviewees (predominantly

seasoned, deeply experienced

executives) responded that employee

resource groups (ERGs) were either

inconsequential in their personal career

development, or that objectives were

not fully realized. Some felt that ERGs

helped companies assuage concerns

about how corporate cultures dealt with

underrepresentation and inequities, but

lacked the backing of senior executives to

make inclusion an organizational priority.

On the positive side, some participants

underscored how ERGs helped them

navigate their careers, or create bonds

with other employees. One participant

noted, “My experience being involved

with an ERG has allowed me to expand

my network, and develop professionally

in terms of presentations and public

speaking. I have nothing but great

experiences when dealing with ERGs.”

Marsh • 9

“It must be the

mindset of decision

makers to emphatically

ensure that their

requirements are

invoked in the hiring

process, from top to

bottom, during the

recruitment process.”

10 • The Journey of African-American Insurance Professionals

Mentoring Programs

Seen as a Key to Success

Mentoring and coaching programs should be a key piece of

a company’s long-term diversity and inclusion plan. Nearly

every study participant said such programs have helped their

career development, and a majority recommended that such

opportunities be pursued by African Americans (see Figure 6).

Yet only 38% had an active mentoring relationship.

One thing is clear: To African Americans in insurance, mentoring

matters (see Figure 7). What does not seem to matter is the race,

gender, or other such characteristics of the mentor – mentors

and mentees should have compatible personalities, and mentors

should ideally be invested in their mentee’s progress in the

industry. Having a mentor would ideally help more African

Americans feel welcome and progress in the insurance world.

Interestingly, many participants who did not have mentors

reported roughly the same levels of career satisfaction as

those who had them (see Figure 8). One reason for this may be

that some people who currently have mentors are dissatisfied

with the relationship.

Further exploration regarding specific mentoring initiatives is

necessary to understand where mentoring works and is mutually

beneficial, including around questions such as:

• How should individuals best position themselves to obtain

a mentor?

• Which type of mentoring (formal vs. informal) is most effective

in encouraging African-American insurance professionals to

remain in the industry?

• How should insurance industry organizations establish highly

effective mentoring programs that enable and foster the most

inclusive corporate cultures?

• How can organizations measure the quality of the

mentoring relationships?

The perception of mentoring seems to extend beyond race, gender,

or ethnicity. The most positive comments came from those who

believed that the mentoring was not based on demographics

but rather personal interest in the individual. Furthermore,

mentoring was most effective when both persons involved were

engaged and accessible.

The Importance

of Sponsorship

Sponsorship — a higher level of professional relationship

between an employee and a senior executive — was also seen

as vital to success. As one participant put it: “Sponsorship by a

senior executive or seasoned professional greatly increases the

probability of an individual, especially an African-American or

person of color, being given broader responsibilities and promoted

to senior ranks.”

Generally, a sponsor (likely white, male, and highly experienced

in the industry/company) underwrites and vouches for another

person’s career, built upon clear feedback, introductions to

FIGURE

Mentoring and coaching

programs are important

for career advancement

SOURCE: MARSH

Strongly agree

Somewhat agree

Mentoring or coaching programs can provide exposure

and access for African-American insurance professionals

to senior level executives and greater opportunities for

promotion or career advancement.

49%

51%

Marsh • 11

new and different opportunities, and a durable connection that

surpasses a mentoring relationship. There is a mutuality expected

from sponsorship, coming from the understanding — implicit or

explicit — that both individuals will gain from the relationship,

which in turn creates a return on investment that outweighs the risk

of supporting another person’s career. Sponsorship would work

especially well for African Americans with no familial, commercial,

or other ties to the industry, helping them progress along their

career path.

Regardless of how companies choose to approach mentoring

and sponsorship for African Americans and people of color, if

their culture is not inclusive and willing to become more diverse

at all levels, these programs will founder and cause more harm

than good.

FIGURE

Sponsorship and mentoring

are highly recommended

SOURCE: MARSH

What ways would you recommend to African-American

employees to progress from trainee to executive levels?

47% 36% 11%

Sponsorship/mentorship

Leadership development

On-the-job training

Join professional organizations or clubs

FIGURE

Mentorships help with

career satisfaction

SOURCE: MARSH

I am satisfied with my insurance industry career.

15.3% 10.5%11.1%46.8% 16.3%

25.2%43.4% 8.7%19.2%

3.5%

Has a mentor

Does not have a mentor

Neutral

Somewhat agree Somewhat disagree

Strongly agree Strongly disagree

12 • The Journey of African-American Insurance Professionals

Recommendations: Taking Action

Improving the journey of African

Americans in the insurance industry

is dependent on both employers and

employees taking positive actions.

Recommendations

for Employers

Disrupt Recruiting Practices

To recruit top African American talent,

companies should build informational

pipelines that inform prospective hires

of the vast opportunities within the

industry. There are obvious gaps in

knowledge and awareness about the

industry itself and where it is headed

in relation to the application of data,

analytics, and new technologies, which

may constrain insurance from being a top

choice. Beyond conventional recruiting

on college campuses, employers should

establish ongoing relationships with

key faculty members, business and

community leaders, and other influential

persons who can increase awareness

of insurance industry career prospects.

Employers also should tap into the talent

pools in African-American professional

groups — for example, the National African

American Insurance Association, Executive

Leadership Council, National Black MBA

Association, and National Association of

Black Accountants — to broaden their

recruitment efforts.

Smaller businesses should tap into

African-American talent pools to enhance

their competitiveness and improve

their growth potential. With changing

minority demographics and an increase

in the number of smaller agencies

servicing them, there is an opportunity to

provide African Americans interested in

insurance careers with unique hands-on

opportunities to grow, and grow with, the

business. Furthermore, those employees

in producer roles may be able to

facilitate connections with emerging

markets and provide deeper insights

into market targets.

Commit Senior Leadership

Senior leadership commitment and

engagement are essential to the

substance, vitality, and sustainability of

diversity and inclusion in the workplace.

Recognition of, and respect for, different

perspectives must be signaled from the

top of an organization and be a strategic

priority. Senior management engagement

is a crucial element of success, including

in such areas as sponsoring and

mentoring; rectifying inequities in

compensation and promotion; holding

others accountable for diversity goals;

promoting lines of communication that

expose a diversity of ideas, experiences,

and personalities; encouraging employees

to own their careers; and opening doors

for individuals to contribute.

Develop and Sponsor

Employee Resource Groups

Employee resource groups (ERGs) should

have a positive impact, but must be

proactive entities that bring employees

together to address real concerns. ERGs

should be safe places where overlapping

objectives can be met: creating positive

social environments where individuals

can express themselves and providing

training on hard/technical skills (such as

certifications and knowledge transfer)

and soft/interpersonal skills (such as

leadership, presentations, and mobilizing

others). Insurance industry organizations

that encourage this type of “risk taking”

will benefit from heightened employee

morale and productivity.

Mentor, Coach, and Sponsor

Formal coaching and mentorship

programs and informal mentoring

relationships should be explored for what

fits best in a company’s organizational

structure. Companies in the insurance

industry should foster dynamic mentoring

and coaching cultures and engage

external experts, when necessary, to train

mentors on the most effective coaching

techniques and to enhance the quality of

the relationships. For formally arranged

mentoring, senior leadership should be

able to measure results, including the

frequency and type of interactions, the

progress of the mentee in terms of skill

set development and technical acumen,

and the quality of the work product.

If an organization decides to provide

sponsorship programs, senior leaders

should take ownership and help identify

employees with high potential and suggest

mutually beneficial matchups.

Diversify Suppliers

Taking a look outside the organization,

the challenge of supplier diversity, or

economic inclusion, is one that insurance

industry companies must also address. For

example, insurance industry companies

should consider expanding vendor

opportunities with African-American

companies — for example, third-party

administrative services — that can enhance

brand image and support organizational

diversity efforts.

Listen to Your Employees

When study participants were asked

what concrete actions insurance industry

companies can take to attract and retain

more African Americans, mentorship and

sponsorship were at the top of the list,

but were not the only recommendations

(see Table 1).

Marsh • 13

TABLE 1: Additional Actions Employers Can Take*

ACCESS AND

EXECUTIVE

COMMITMENT

• Executive leadership of the organization needs to engage African Americans and help to attract top

African-American talent to the firm.

• Make a commitment from the top — the CEO or president. Support or advocacy from anywhere else in

the organization, on its own, will be less successful.

• Increase senior management awareness of the diversity gaps.

• Find ways to build confidence of African-American professionals in the leadership pipeline.

• More open communications within organizations about opportunities.

• Ensure that there is support for senior level initiatives at lower management levels in order to move

people forward.

• Encourage advocacy for African-American professionals by discouraging unwarranted criticism of

efforts that are supportive of African Americans and other diverse workers.

OPEN CONVERSATION

ON RACE

• Real conversations are needed around tough internal questions, such as: Why does the company have

only one African-American executive?

• Likewise, discussions should be held regarding how broader societal issues and events impact the

working environment for all, especially African Americans.

CORPORATE CULTURE

• Create a “clean environment” (level playing field) for performance measurement.

• Leverage ERGs.

• Create structured mentorship and sponsorship programs and hold people accountable.

• Be more welcoming to African Americans. Participate in community activities, recruit at schools, and

engage African Americans to speak about working in the organization.

APPRECIATION FOR

THE PLIGHT OF

AFRICANAMERICAN

PROFESSIONALS

• Being the “one and only” is very risky: if you fail, there’s no one behind.

• Being the diversity candidate at a senior level presents challenges for the candidate and

the organization.

• Better understanding of the issues of black women.

PIPELINE DEVELOPMENT

• Build and support a long-term talent pipeline among African Americans.

• Recruit in diverse areas.

• Hire people with broad skill sets from diverse backgrounds.

• Ensure there is a diverse set of candidates presented for key positions.

• Innovate and expand on traditional training programs (college recruitment, rotational assignments) to

attract and recruit talent.

• Create programs that give people who are not in the industry insurance experience.

TA LE NT/

PROFESSIONAL

DEVELOPMENT

• Provide more training and development opportunities.

• Encourage lateral and vertical movement across the organization.

• Develop opportunities for networking and meeting senior executives outside immediate

areas of responsibility.

• Allow people a chance to succeed and a chance to fail — African Americans should be encouraged

to take risks.

• Use ERGs to develop talent and leadership.

• Provide minority training programs.

• Ask employees what their development needs are.

MENTORING

AND COACHING

• Establish volunteer mentoring programs.

• Encourage more exchanges between senior managers and employees.

*The above list was drawn from comments made by study participants.

14 • The Journey of African-American Insurance Professionals

Recommendations

for Individual

Employees

Study participants noted that African

Americans face everyday issues that

companies cannot help them immediately

resolve. For example, as a minority in

a company and industry, some African

Americans may feel they cannot truly “be

themselves” at work, at least initially. They

must work through a process of figuring

out how they fit in and engage with their

place of employment.

“I believe as industry trends change, we

have to adapt, too,” one participant noted.

“We have to not be afraid to learn and grow

with the industry. My motto is to continue

to learn, study, get involved in projects.

Do what you can do. There are webinars,

courses, and independent programs

that can be explored to stay abreast.

If African-American professionals are

exposed to the business more, I believe

they will make, and can make, the right

choices to help themselves. We have to

be proactive and two steps ahead in the

game. It’s not easy, but achievable.”

Self-Advocate

and Self-Mentor

Self-advocacy and self-mentoring are

essential parts of career development.

While finding broad career support within

a company may be difficult for African-

American insurance professionals, the

ultimate responsibility for managing one’s

career and developing the tools for success

lies with the individual. Self-directed career

management requires an individual to

self-improve, self-correct, and prepare.

Regularly posing introspective questions

such as: “What value am I bringing to the

organization?” and “Am I showing that

value?” are essential to motivating the

individual towards self-advocacy.

Seek Mentorships, Coaching,

and Sponsors

Successful mentoring relationships

require active mutual engagement with

a strong emphasis on the mentored

professional being responsive, respectful,

and ready to embrace suggestions and

recommendations. An individual seeking

a mentor should do background research

on the mentor’s business/discipline and

even look beyond his/her current

company to find someone who will be

willing to provide reliable and timely

advice. Just as important as seeking

mentoring, African-American insurance

professionals should actively engage in

providing mentorship to other African

American employees. Without mentoring

for and by African-American insurance

professionals, substantial opportunities

will be missed for growth, knowledge

attainment, and career satisfaction.

Marsh • 15

Sponsorship requires a deep level of trust and a high level of engagement in order to be

productive. A critical element in the sponsorship process are individual attributes such as

being someone who gets things done, is visible, takes on new assignments, and exposes

himself/herself to experiences outside of their traditional training. African-American

insurance professionals can position themselves for sponsorship by broadening their

networks inside and outside the company. They should not be afraid to use their

singularity — being “the only one” — to demonstrate their capabilities. African-American

insurance professionals should be willing to sponsor someone else, setting high

expectations for performance. There are African-American senior executives throughout

the industry with the perspective, credibility, and know-how to benefit promising

younger colleagues. Such leaders should aggressively reach back and pull forward,

using ERG’s, informal networks, NAAIA and other professional organizations to sponsor

up-and-coming African-American insurance professionals.

Get Involved in Employee Resource Groups

Vigorous participation in ERGs can be an affirmative way for individual professionals to

enhance their careers. While there is clearly room for improvement in ERGs, at their best

they provide a forum to share collective experiences, form bonds with other employees,

and deliver programming that raises a participant’s level of expertise. The most

productive ERGs are organized and coordinated by seasoned individuals, have obvious

executive sponsorship, and deliver coherent programs with the core business as part of

their regular agendas. Individuals should help form and actively participate in ERGs, and

ensure the right balance is struck between socially-oriented activities and knowledge,

leadership, and management skill-building activities.

Actively Participate in NAAIA and Other

Professional Organizations

Individual professionals should seek membership in NAAIA and/or other professional or

affinity organizations — for example the Risk Management Society, National Black MBA

Association, and the National Association of Black Accountants — to broaden their local

and national networks. These organizations frequently convene members and provide

pertinent material through webinars and research papers that each professional can use

to fortify their career plan.

“As a younger insurance

professional at the time, my

employer understood my desire

to move into management. I

expressed my career path. From

there I was assigned to a mentor

who helped shaped my growth.

He was a VP of marketing.

He and I met once a month to

go over my educational desires,

career progression plans, etc.

The main areas for him: (1) Get

involved as much as you can

with company activities, events,

meetings, workshops etc.; (2)

Be exposed: attend meetings,

volunteer for projects, even if

they are not related to your main

tasks; (3) Learn: take courses,

finish degree, take webinars,

read books; (4) Network: meet

new people in and outside of the

organization; join associations.

Today, I continue with these

principles. My career has

progressed. Now I am in a

position where I can make

decisions and lead others.”

16 • The Journey of African-American Insurance Professionals

Conclusion

It’s encouraging that survey participants were overwhelmingly positive in their view of the

insurance industry as a career choice (see Figure 9).

Building diverse and inclusive organizational cultures will be important for insurance

industry organizations in attracting and retaining talent. At the same time, it will help the

industry create better solutions, deliver better service, and appeal to a wider customer

base. To thrive in a diverse world, the insurance industry will be well served to develop

policies that better suit the needs of African Americans and other minority groups. The

wealth of talent in the African-American community is waiting to be tapped.

FIGURE

Most African-American insurance professionals would

encourage others to pursue a career in the industry

SOURCE: MARSH

Would you encourage other African Americans to pursue an insurance industry career?

94%

Yes, encourage

No, don’t encourage

Marsh • 17

FIGURE

Race and Ethnicity of Survey Participants

SOURCE: MARSH

Appendix

Research Methodology

Development of The Journey of African-

American Insurance Professionals study

used a combination of primary and

secondary sources as described below.

The variety of sources — online survey,

focus groups, and interviews — provided

a spectrum of perspectives, voices, and

facts around which the study’s findings

were constructed.

PRIMARY SOURCES

All primary research was conducted

from July 2017 through February 2018

as follows:

• 312 customized, anonymous online

surveys, from which 155 respondents

asked to be contacted for follow-up,

indicating a strong interest in the

subject matter and willingness to

participate in this unique study.

• 25 interviews, either individually or in

groups of two to three people.

• 7 focus groups, including at Marsh

headquarters in New York City and at

the NAAIA National Conference.

SECONDARY RESEARCH

Secondary research efforts provided

a historical perspective on the African

American experience in the corporate

world. Example publications included

Blacks in Corporate America (Watson and

Davis, 1981) and Cracking the Corporate

Code: The Revealing Success Stories of 32

African American Executives (Cobbs and

Turnock, 2003).

Demographic Breakdown of Study Participants

• Approximately 50% of survey takers and 95% of direct interviewees have been in the

insurance industry for at least 20 years. This indicates a relatively positive level of work

satisfaction, personal persistence, a low propensity for switching industries, and an

accumulation of vital skills and experience.

• Most survey respondents worked for large insurance industry companies (revenues

over $100 million), and represented a variety of disciplines, including claims,

underwriting, sales/business development, client relationship management, finance,

talent development/human resources, strategic planning, technology/IT, marketing,

legal, and operations.

• More than 85% of the survey respondents and 100% of focus group and interview

participants attained college degrees or graduate degrees.

• 82 respondents reported an array of designations and certified skills, with a

predominant percentage being Associates in Risk Management (ARM) or holding a

Chartered Property Casualty Underwriter (CPCU) certificate.

Native American

3.56%

Multiracial/Mixed race

3.24%

Middle Eastern American

0.65%

Caribbean American

11%

African American

91.24%

Latino American/Hispanic

2.59%

White American/European American

2.59%

Asian American

1.29%

Other

0.97%

NOTE: Respondents could check as many categories as they normally use to describe themselves.

18 • The Journey of African-American Insurance Professionals

FIGURE

Title Categories for Survey Participants

SOURCE: MARSH

Agency Owner

2.59%

FIGURE

Insurance Industry Segments of Survey Participants

SOURCE: MARSH

Retirement/Pension

Bond/Debt Insurance

Assistant VP/2nd VP

10.36%

Senior VP Level

10.03%

Manager

21.36%

Analyst

10.36%

Property and Casualty -

Commercial lines

73%

General Insurance

26%

Property and Casualty -

Personal lines

41%

Life Insurance

24.33%

Liability Insurance

34%

Brokerage

21%

Workers’ Compensation

30.47%

Health/Medical Insurance

17.67%

Director

8.74%

Broker/Underwriter

13.27%

Vice President

9.39%

Administrator/Assistant

5.50%

Managing Director

1.62%

President/CEO/EVP

5.83%

Uncategorized

0.97%

8.33%

6.67%

NOTE: Titles were self-reported and in some cases multiple titles were reported.

NOTE: Respondents were able to select multiple industry segments.

Marsh • 19

ARM - Associate in

Risk Management

26.83%

CPCU - Chartered Property

Casualty Underwriter

26.83%

CIC - Certified

Insurance Counselor

14.63%

AIC - Associate in Claims

15.85%

CEBS - Certified Employee

Benefits Specialist

1.22%

AAI - Accredited Advisor

in Insurance

3.66%

FIGURE

Current Insurance Organization

of Survey Participants

SOURCE: MARSH

FIGURE

Highest Level of Education

for Survey Participants

SOURCE: MARSH

Graduate degree

Brokerage

Bachelor degree

Insurance

Carrier

Some college

but no degree

Other

Doctorate or

terminal degree

Independent

Agency

Associate degree

High school degree

or equivalent

Law Firm

Reinsurer

51.3%

58.9%

16.1%

11.6 4%

3.42%

1.37%

34.5%

3.9%

2.9%

0.3%

7.1%

AU - Associate in

Commercial Underwriting

9.76%

AIM - Associate in Management

3.66%

AIS - Associate in

Insurance Services

7.32%

AMIM - Associate in Marine

Insurance Management

2.44%

CLCS - Commercial Lines

Coverage Specialist

4.88%

CRM - Certified Risk Manager

2.44%

CLU - Chartered

Life Underwriter

2.44%

CISR - Certified Insurance

Service Representative

3.66%

RHU - Registered

Health Underwriter

2.44%

FIGURE

Certiﬁcations and Licenses of Survey Participants

SOURCE: MARSH

13.01%

NOTE: Respondents were able to select multiple certiﬁcations and licenses.

NOTE: Respondents were able to select multiple organization types.

20 • The Journey of African-American Insurance Professionals

FIGURE

Age Range of Survey Participants

SOURCE: MARSH

40-49

50-59

30-39

60-69

70+

20-29

32.9%

27. 36%

21.5%

9.12%

7.82%

1.3%

FIGURE

Survey Participants’ Number of Years in Insurance

SOURCE: MARSH

20-30 years

7-10 years

15-20 years

5-7 years

30+ years

0-3 years

10 -15 years

3-5 years

31.94%

17. 42%

13.23%

5.81%

6.45%

9.03%

10.97%

5.16%

ABOUT MARSH

A global leader in insurance broking and innovative risk

management solutions, Marsh’s 30,000 colleagues advise

individual and commercial clients of all sizes in over 130

countries. Marsh is a wholly owned subsidiary of Marsh &

McLennan Companies (NYSE: MMC), the leading global

professional services firm in the areas of risk, strategy, and

people. With annual revenue over US$14 billion and nearly

65,000 colleagues worldwide, MMC helps clients navigate

an increasingly dynamic and complex environment through

four market-leading firms. In addition to Marsh, MMC is

the parent company of Guy Carpenter, Mercer, and Oliver

Wyman. Follow Marsh on Twitter @MarshGlobal; LinkedIn;

Facebook; and YouTube, or subscribe to BRINK.

As the world’s leading insurance broker and risk advisor, our

commitment to diversity is critical for attracting talented

people, serving clients, and generating creative business

solutions. Marsh works together with our sister companies to

embed diversity as a key part of our business strategy. As such,

we are dedicated to finding innovative ways to strengthen

our ability to recruit, retain, and support a diversity of culture

globally. We seek to provide a workplace where colleagues feel

valued and are embraced for their differences, uniqueness,

and individuality. Our Colleague Resource Groups (CRGs) help

make big companies like ours feel smaller by providing more

than support and a bigger voice. They have become potent

professional development networks, connecting colleagues to

opportunities for our company and themselves.

ABOUT THE NATIONAL AFRICAN

AMERICAN INSURANCE ASSOCIATION

The National African American Insurance Association (NAAIA)

was founded in 1997 by Jerald L. Tillman and is a networking

resource for African-American insurance employees. It is

the only professional organization that provides an ongoing

platform for African-American professionals; as such, it

partners with insurance carriers to provide benchmarks for

African Americans’ progress in the insurance industry. NAAIA

engages in serious discussions with partners and helps guide

dialogue on a layered diversity and inclusion strategy. It

works with partners to rethink their recruiting and retention

practices, while simultaneously connecting sponsors and

mentors with rising professional stars. There is no other

currently available, comparable platform like NAAIA that

convenes African-American insurance professionals.

Marsh is one of the Marsh & McLennan Companies, together with Guy Carpenter, Mercer, and Oliver Wyman.

This document and any recommendations, analysis, or advice provided by Marsh (collectively, the “Marsh Analysis”) are not intended to be taken as advice regarding any individual situation and should

not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Marsh shall have no obligation to update

the Marsh Analysis and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting, or legal matters

are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, tax, accounting, or legal advice, for which you should consult your own professional

advisors. Any modeling, analytics, or projections are subject to inherent uncertainty, and the Marsh Analysis could be materially affected if any underlying assumptions, conditions, information, or factors

are inaccurate or incomplete or should change. Marsh makes no representation or warranty concerning the application of policy wording or the financial condition or solvency of insurers or reinsurers.

Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage. Although Marsh may provide advice and recommendations, all decisions regarding the amount, type or terms of

coverage are the ultimate responsibility of the insurance purchaser, who must decide on the specific coverage that is appropriate to its particular circumstances and financial position.

To learn more about Marsh’s diversity and inclusion initiatives and thought leadership, please visit www.marsh.com.

MARTIN SOUTH

President, United States & Canada Division

Marsh

+1 212 345 6410

martin.south@marsh.com

ALEX AMONETT

Global Diversity and Inclusion Leader

Marsh

+1 281 546 2299

alexander.amonet[email protected]