Lara highlights $6.7 billion economic impact of diverse businesses in insurance industry

California Insurance Commissioner Ricardo Lara announced a new first-ever Economic Impact Report from the California Department of Insurance showing that insurance companies contracting with small and diverse-owned businesses contributed a total economic output of $6.7 billion to California’s economy, supporting more than 29,000 jobs and generating more than $917 million in state tax revenues.

“At a time when economic and social divisions threaten our communities, these results prove that inclusion is both a powerful economic engine and a path to help businesses thrive,” said Lara. “This is a win-win for consumers. By encouraging insurance companies to contract with small and diverse businesses, they can help strengthen the economies of the communities they serve and provide better and faster services to help policyholders recover on their own terms.”

The findings were released by the Department’s Office of Insurance Diversity and Innovation, a new office established by Lara to help expand equity and inclusion across California’s $400 billion insurance market considered the largest in the United States. The data was collected through the Department’s nationally-recognized Insurance Diversity Program, which advances transparency in supplier and board diversity within the insurance industry, and the report is considered to be the first of its kind nationwide.

Insurance companies reported spending $3.1 billion with diverse suppliers in California, resulting in widespread economic gains for insurers and small businesses across the state.

These business procurements
• Created and supported 29,131 jobs statewide.
• Generated $2.4 billion in wages, salaries, and benefits.
• Produced $917.6 million in tax revenues for California.

The Department also released the 2025 Insurance Diversity Index, a first-of-its-kind benchmarking tool that measures the extent to which insurance companies are integrating diversity into their procurement initiatives, strategic goals, governance policies, and board leadership. The Index shows that companies that commit to equity are outperforming peers — reinforcing a strong connection between inclusive business practices and sustainable growth, fostering greater consumer trust.

“Inclusion is smart business,” said Lara. “Every dollar invested in a diverse supplier is more than double its economic impact that, in turn, multiplies in our local communities, builds jobs, and strengthens families. This is about being more efficient and creating a future where everyone has the chance to succeed.”

This year’s Insurance Diversity Summit, themed “Resilience Reimagined: Shaping an Inclusive Future,” brought together policymakers, industry leaders, small business owners, and community advocates. Participants explored how supplier and board diversity can drive innovation and resilience in an industry facing climate risk, demographic change, and social polarization.

The Summit spotlighted the leadership of the Insurance Diversity Task Force, including its first-ever all-women leadership team — Chair Vikita Poindexter and Vice Chair Dr. Fabiola Cobarrubias.

Assemblymember Lisa Calderon, Chair of the California State Assembly Committee on Insurance, delivered the morning welcome remarks.

“Inclusion closes opportunity gaps. This is how we keep California’s economy moving forward,” said Calderon. “I applaud Commissioner Lara and the Department of Insurance for uplifting small and diverse firms to build resilient local economies. This creates good jobs and delivers better outcomes for consumers across California — That’s a win for everyone.”

A keynote plenary with Commissioner Lara and Katie Evans, Executive Vice President and Chief Legal Officer for CSAA Insurance Group emphasized how inclusion and equity are essential to a modern, resilient insurance market.

“In the face of global uncertainty, we are doubling down on inclusion and innovation here in California,” said Lara. “Together, we are building an economy where diversity and inclusion continues to deliver results that drive even greater value for all Californians.”

About the Office of Insurance Diversity and Innovation
Created by Insurance Commissioner Ricardo Lara, the Office of Insurance Diversity and Innovation is home to the longstanding and nationally-recognized Insurance Diversity Program and the Insurance Innovation Program. The Office is dedicated to prioritizing the Department’s consumer protection mission by spearheading research, equitable data-driven policy solutions, industry-wide engagement, and thought leadership on diversity and innovation in California’s insurance industry. For more information, visit insurance.ca.gov/diversity.

About the Insurance Diversity Summit
The 2025 Insurance Diversity Summit is a free event hosted by the California Department of Insurance. The Summit offers a platform for education, networking, and opportunity sharing in the fields of supplier and board diversity within the insurance industry. For more information, visit tinyurl.com/2025DivSummit.