DEI initiatives need executive buy-in to work

NEW YORK — Organizations must commit to addressing inequities and secure the support of senior leaders to drive real progress on corporate diversity, equity and inclusion initiatives, a panel of industry leaders said.

Amplifying the skills and capabilities of diverse talent is critical as companies look to attract and retain employees amid the current politically divisive climate, they said.

“DEI is the right thing to do, not only from a business perspective in terms of profitability but also just the humane thing to do today,” said Michael Chang, head of corporate risk & broking at Willis Towers Watson PLC.

He spoke last month at the Business Insurance Diversity, Equity and Inclusion Institute’s annual DEI Leadership Conference.

Despite notable events, such as the murder of George Floyd and the U.S. Supreme Court decision on education, raising DEI concerns among the general public, there’s been a lack of significant progress on DEI in the insurance industry, Mr. Chang said.

In the Students for Fair Admissions cases last year, the high court effectively ended affirmative action in college admissions.

More broadly, many organizations used these events to either get rid of chief diversity officers or as a cover for political correctness rather than a genuine commitment to DEI, he said.

“Some of the political divide that we’re having today in our country is challenging a lot around diversity, equity and inclusion. We’re all in this together, no matter what you believe,” Mr. Chang said.

DEI strategies must be inclusive and involve all levels of an organization, not just diverse leaders, said Trevor Gandy, global head of diversity, equity and inclusion at Axa XL, a unit of Axa SA.

A comprehensive approach that includes culture, workforce, marketplace and community is needed, Mr. Gandy said.

“Whether it’s the majority male CEO toward the 18-year-old you brought in as an intern, if they don’t see that DEI actually makes it better, actually includes them, it will never manifest as something that’s significant,” Mr. Gandy said.

Negative perceptions and assumptions about so-called DEI hires have to be broken down, said Dwight Williams, national account director within the management liability practice at Risk Strategies Co.

“There’s often an assumption that in order to get a diverse candidate, you have to sacrifice skill and talent. They are not mutually exclusive. It’s and, right? You can have a diverse candidate who meets all the criteria in terms of that skill set and leadership performance,” Mr. Williams said.

It’s a “maturation process” for the industry to get over that first hurdle, he said.

“If the middle-aged white man can’t buy into the argument, and they feel as though perhaps they are being disenfranchised, or somehow their job is in jeopardy because it’s going to be given to someone who is perhaps not qualified because they’re diverse, then the whole equation falls apart,” he said.

Creating relationships and opportunities for diverse talent to thrive and progress is critical, and senior leaders should be encouraged to actively sponsor and advocate for diverse employees, the panelists said.

“It requires strategy. It requires some deep thinking about what’s working, what’s not working, but if you have the right people to help get behind it you actually see progress,” Mr. Gandy said.

Setting diversity targets can help but won’t necessarily change behaviors, panelists agreed.

Numbers alone don’t tell the whole story, Mr. Williams said. “There’s got to be a paradigm shift in the way we think about this,” he said.

“When you force somebody to do something, they’re not doing it because they believe it’s the right thing to do,” Mr. Chang said.

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Targeted approaches required to attract diverse talent

Companies need to be targeted in their outreach and partner with smaller colleges and HBCUs to recruit younger, diverse talent, panelists said last month at the Business Insurance Diversity, Equity and Inclusion Institute’s annual DEI Leadership Conference.

Diversity is about more than just color, race, gender and LGBTQ+, said Stacy Johnson, director of talent and organizational development at Risk Strategies Co.

“There’s diversity of thought and experiences. When we look at diversity through that lens, it expands the programming we’re able to provide to our associates,” Ms. Johnson said.

One of the recruitment challenges facing the insurance industry is that those in it don’t talk enough about their work in a way that resonates with younger people, said Teresa Chan, director of the Master’s in Insurance Management program at Columbia University in New York.

“When I was working in the industry, I didn’t say, ‘I’m in insurance.’ That’s an easy answer. I would say, ‘Oh, I create products that help facilitate the financing of renewable, alternative energy projects,’” Ms. Chan said.

Companies need to go to where diverse candidates are cultivated and be open to looking at smaller schools, said Gregory Smith, a recent graduate from Georgia Gwinnett College.

Adapting recruitment strategies to appeal to diverse candidates is a “work in progress,” said Christina Mott, chief operating officer at Marsh McLennan Agency, the small and midsize brokerage unit of Marsh LLC.

The session was moderated by Katherine Kyle, chief people officer at Builders Insurance Group.

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Lee Vuu named 2024 Alonzo Herndon Award winner 

Lee H. Vuu

Lee H. Vuu, founder and board president of the Multicultural (Re)Insurance Association and vice president at Argo Group, is the 2024 Alonzo Herndon Award winner.

The award, presented by Business Insurance’s Diversity, Equity and Inclusion Institute, recognizes an individual dedicated to supporting diversity and inclusion efforts in the insurance industry.

Board members of the DE&I Institute select the award winner from nominations received from individuals and organizations across the insurance sector.

Ms. Vuu began her career in the reinsurance sector in 2004 as an executive assistant to a C-suite executive. Expanding her responsibilities beyond her job description, she taught herself the industry’s fundamentals and moved into reinsurance claims. After taking positions of increasing responsibility at various insurers and reinsurers, she was named to her current position at Argo in 2022.

That same year, she founded MRIA, a global platform and network designed to bring new perspectives on DEI and form partnerships related to DEI initiatives within the insurance and reinsurance industry.

In addition, Ms. Vuu is a member of Chief, a network of female executives across industries.

The award is named in honor of Alonzo Herndon, a visionary businessman who, more than 100 years ago, founded what would become Atlanta Life Insurance Co., one of the United States’ largest and most successful Black-owned businesses.

Mr. Herndon was born into slavery in 1858 and worked as a laborer from a young age. With almost no schooling, his perseverance and entrepreneurial spirit drove him to great success, opening service businesses in Atlanta that were joined to form a landmark company.

The Alonzo Herndon Foundation honors his legacy and supports programs and policies in keeping with his vision.

View photos from the 2024 Business Insurance Diversity, Equity and Inclusion Institute’s annual DEI Leadership Conference.