Ricardo Lara, Commissioner at California Department Of Insurance | California Department Of Insurance
California Insurance Commissioner Ricardo Lara has announced the release of a new Economic Impact Report by the California Department of Insurance, highlighting that insurance companies contracting with small and diverse-owned businesses generated $6.7 billion in economic output for the state. This activity supported over 29,000 jobs and produced 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 Commissioner 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 report was released by the Department’s Office of Insurance Diversity and Innovation, which was established by Commissioner Lara to promote equity and inclusion in California’s $400 billion insurance market. The data was gathered through the Insurance Diversity Program, which seeks to increase transparency in supplier and board diversity within the industry. According to the Department, this is the first report of its kind in the nation.
Insurance companies spent $3.1 billion with diverse suppliers in California, resulting in economic benefits for both insurers and small businesses statewide.
The Department also introduced the 2025 Insurance Diversity Index, a benchmarking tool that measures how insurance companies are integrating diversity into procurement, strategic goals, governance, and board leadership. The Index indicates that companies committed to equity outperform their peers, linking inclusive business practices with sustainable growth and increased consumer trust.
“Inclusion is smart business,” said Commissioner 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.”
The 2025 Insurance Diversity Summit, themed “Resilience Reimagined: Shaping an Inclusive Future,” brought together policymakers, industry leaders, small business owners, and community advocates. The event focused on how supplier and board diversity can drive innovation in an industry facing climate risk, demographic change, and social polarization.
The Summit highlighted the leadership of the Insurance Diversity Task Force, now led by its first all-women team: Chair Vikita Poindexter and Vice Chair Dr. Fabiola Cobarrubias. Assemblymember Lisa Calderon, Chair of the California State Assembly Committee on Insurance, opened the event. “Inclusion closes opportunity gaps. This is how we keep California’s economy moving forward,” said Assemblymember 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 session featured Commissioner Lara alongside Katie Evans, Executive Vice President and Chief Legal Officer for CSAA Insurance Group, discussing the importance of inclusion for a resilient insurance market.
“In the face of global uncertainty, we are doubling down on inclusion and innovation here in California,” said Commissioner Lara. “Together, we are building an economy where diversity and inclusion continues to deliver results that drive even greater value for all Californians.”
The Office of Insurance Diversity and Innovation oversees programs aimed at promoting diversity within the industry. The annual Insurance Diversity Summit provides education and networking opportunities focused on supplier and board diversity.
The California Department of Insurance regulates the state’s insurance marketplace, which collects $400 billion annually in premiums. State law requires Californians to purchase several types of insurance, including health, automobile, and workers’ compensation coverage. The Department also protects consumers through rate regulation, oversight of insurer solvency, agent licensing standards, market conduct reviews, complaint resolution, and fraud investigation.
Consumers can contact the Department for assistance at 1-800-927-4357 or visit www.insurance.ca.gov.
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