Wednesday, December 23, 2015
While many parents are putting the final wrappings on gifts from Santa, we thought we’d take a moment to acknowledge the charitable giving of insurers.
As Insurance Journal reminds us here, U.S. property/casualty insurers have increased their charitable giving by an average of 15 percent since 2011, to an industry total of $575 million.
According to a 2015 McKinsey report, an increasing number of insurers are aligning their programs with their business strategy.
While the P/C industry continues to direct almost two-thirds of its giving to three areas – education, health and social services, and community needs – the emphasis has shifted since an earlier study in 2011.
Education funding declined by about half while contributions to health and social services increased by half and contributions to community needs rose by about 70 percent.
The survey also found that while insurers ranked the same three factors for determining the focus of charitable giving at the top of their list in 2014 as in 2011— serving local communities, aligning with business needs and meeting the interests of stakeholders such as employees and customers, the emphasis has shifted.
Some 28 percent of carriers now put local community needs at the top, up from 22 percent in 2011.
And increasing alignment with business needs has seen the biggest shift, with 22 percent now considering this factor most important, up from 14 percent in 2011.
The survey revealed that firms that look for such synergies are more likely to select charitable causes that could lead to opportunities for innovation or building new market knowledge.
We couldn’t have said it any better.
For information on the insurance industry’s contribution to community development see Impact, the Insurance Information Institute’s online resource.