Please join the Insurance Industry Charitable Foundation (IICF) on December 9, at 6 p.m. ET, for their annual benefit event highlighting the insurance industry’s charitable work in communities and honoring the philanthropic leadership of Gallagher Global.
To view details about the virtual program click on this link. On the evening of the program, you will click on the same page to view the event.
Speakers include John K. Mara, President and CEO of the New York Giants.
By Loretta Worters, Vice President, Media
Relations, Insurance Information Institute
Millennials – the generation born between 1980 and 2000 – have begun to
influence charitable giving. They prefer
to work for companies that are involved in charitable causes, seeking a greater
desire to make a social impact through their work, compared with previous
generations. In addition, they tend to
share these values on social media.
These are some philanthropic trends in insurance industry Corporate
Social Responsibility (CSR), identified in “Charitable Giving in the Insurance
Industry,” a report by the Insurance Industry Charitable
released in partnership with McKinsey & Company. The report, along with
IICF’s 2019 Philanthropic Showcase, highlight each of its Key Partner
Company’s charitable endeavors in 2019.
report found that the level of giving has remained consistent, with a focus on
education, health and social services, and community. One key factor behind
this finding is industry consolidation, which has lowered the number of
companies engaged in corporate giving. Insurers are also orienting philanthropy
more around volunteerism. As a result, industry-wide giving has held steady
between $560 million and $600 million in cash, grants, and other donations
In addition to
the influence of millennials on the types of charitable engagements companies
pursue within their communities, the report offers a glimpse of the industry’s
philanthropic commitment and highlights opportunities to expand programs and
fuel community engagement. Charitable giving in the insurance industry
continues to be an important focus.
Some of the report’s key findings, based upon responses
from property and casualty companies and for the first time since 2011 life
insurance and wealth management segments of the industry, include:
• The industry’s desire to work toward a single cause has
increased to 33 percent in 2019 from 17 percent in 2015.
• The importance of giving within their own communities was
evident as about 30 percent of respondents in 2019 prioritize contributions
where employees live and work and where significant business is already done.
• Insurers have shifted their charitable focus toward
increased volunteering opportunities, recognizing millennials prefer to work
with companies directly involved in charitable efforts and activities, rather
than those making only monetary donations.
• Measurement of charitable giving has increased, to 41
percent in 2019 from 26 percent in 2015, as more companies use key performance
indicators to evaluate the impact of their philanthropy.
For organizations looking to amplify either the impact of
their philanthropic efforts or the range of causes, the findings point to a few
key opportunities including planning for greater employee engagement, with a
special focus on millennials to further employee-focused giving strategies; to measure the impact of philanthropy to
identify and build on charitable successes and refine metrics and giving
standards; to rethink roles across the giving organization as CSR leadership
and employee-driven engagement become increasingly common and CEOs continue to
set broad direction; and finally to consider the value and benefits of a
united, collaborative industry approach to CSR.
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.