Black professionals represented 14.7% of the insurance workforce in 2024—up from 9.9% a decade ago—yet representation in senior and executive roles remains critically low, according to the Black Insurance Industry Collective’s (BIIC) "2025 Fostering Black Leadership in Insurance" report. Only 1.8% of executives at the top-10 insurers are Black, and across the Fortune 500, just eight Black CEOs lead major corporations.
Data from the Bureau of Labor Statistics (BLS) show that, in insurance, Black representation in entry-level roles is strong: 14.6% of underwriters, 13.5% of agents, 21.9% of claims/policy processing clerks, and 20.9% of adjusters, appraisers, examiners, and investigators are Black. However, the numbers decrease significantly at higher levels of responsibility and pay.
Furthermore, although the insurance industry is more gender-diverse than many sectors, according to McKinsey, it is less racially diverse. “Women make up 66% of the entry-level workforce, but most are white. Black women comprise over 7%—the highest among financial services industries—but their presence sharply declines as roles become more senior, plummeting to nearly zero at the C-suite level.”
CLM Fellow Nikki-Ann Thomson, JM, MBA, SCLA, insurance risk analyst, Priderock Support Services, explains that one of the most significant barriers preventing diverse talent from advancing into leadership roles in claims and litigation “is not a lack of talent, capability, or ambition—it is limited access to visibility, influence, and decision-making networks. In claims and litigation, leadership opportunities are often shaped through informal relationships, high-profile assignments, and executive exposure. Diverse professionals frequently excel operationally but are not always positioned strategically for advancement.”
Another challenge, Thomson adds, is that “many organizations unintentionally promote based on familiarity and perceived ‘fit,’ rather than leadership potential and measurable performance outcomes. This can create a leadership pipeline that lacks diversity despite strong talent at the mid-management level.”
Key Imperatives for Measurable Progress
Based on the report, the BIIC recommends four key imperatives: data transparency and accountability; sponsorship as strategy; equitable succession planning; and a culture of psychological safety.
Data Transparency and Accountability
“Companies must collect and analyze disaggregated data by race, gender, and role to identify where representation breaks down and track improvement over time,” states the report. The data available often lacks information that reflect the intersection of different identities, leading to efforts that risk being unfocused or performative. Furthermore, voluntary surveys with limited participation often skew results and offer little insight into who is advancing and who is left behind.
“A 2020 Fortune and Deloitte survey of 222 CEOs found that 62% planned policy changes in response to racial justice demands,” the report explains. “Insurers joined in with public pledges and commitments. However, a 2023 update by Marsh and the National African American Insurance Association (NAAIA), 'The Next Steps on the Journey: Has Anything Changed?' showed that actual changes in hiring, promotion, and board representation lagged behind those commitments.”
Sponsorship as Strategy
“Mentorship remains essential—but sponsorship changes outcomes. Senior leaders must actively advocate for emerging Black talent in the rooms where decisions are made,” the report explains, adding that men with sponsors are 23% more likely to advance; women with sponsors are 19% more likely to advance; and sponsors themselves are 53% more likely to move up than peers who do not sponsor others.
“Mentorship and sponsorship are both valuable, but they serve very different purposes,” explains Thomson. “A mentor advises you, shares knowledge, and helps you navigate challenges. A sponsor, however, actively advocates for your advancement when opportunities arise. Sponsors use their influence and credibility to open doors, recommend you for leadership roles, and ensure your work is recognized at executive levels.” She notes that in insurance—especially within claims and litigation—professionals from underrepresented backgrounds may receive mentorship but not sponsorship. Although this can lead to a professional being coached well, they are not necessarily championed in rooms where impactful career decisions are made.
“The most transformative career growth often occurs when someone with organizational influence says: ‘You should put this person in that role,’ or ‘This individual is ready for executive leadership,’” says Thomson. “Organizations should intentionally cultivate sponsorship programs that connect high-potential professionals with senior leaders who can advocate for their advancement.”
Equitable Succession Planning
“Leadership pipelines must include and prepare diverse candidates before vacancies arise, not as a reactive response to public pressure,” the report notes. “An organization’s ability to welcome diverse mid- and senior-level leaders depends heavily on identifying and correcting systemic barriers—especially those embedded in recruiting practices and workplace culture.” The report encourages organizations to expand the pool of university business schools from which they recruit talent in order to widen the talent pipeline.
It also suggests combating biases in hiring, such as “affinity bias” (favoring candidates similar to oneself) and “horns bias” (judging negatively based on stereotypes), by including diverse voices on interview panels and ensuring more than one Black candidate advances at each stage of the hiring process.
CLM Fellow Regina Cedeno, vice president of business development and client services, Allied American USA, says that “insurance organizations can strengthen equity by implementing:
- "Diverse candidate slates for every role.
- "Structured interviews with consistent scoring.
- "Blind resume screening to reduce unconscious bias.
- "Transparent promotion criteria tied to skills and performance, not networks or familiarity.
“Good intentions are not enough,” she continues. “Insurance organizations should track promotion rates by demographics, pay equity, leadership pipeline diversity, and retention patterns.”
Fostering a Culture of Psychological Safety
“For many Black professionals, workplace success comes with an inevitable cost: the emotional toll of navigating bias and scrutiny,” notes the report. “This burden, often referred to as the ‘emotional tax,’ includes the constant need to prove oneself, suppress authentic expression, and stay hyper-alert for microaggressions or discrimination. The consequences are profound—affecting mental health, productivity, and ultimately, retention.”
Research shows that Black professionals feel they must outperform their peers to be seen as equal, leading to burnout, disengagement, and high turnover. A sense of safety and inclusion, according to a Catalyst survey of over 3,000 employees, led to reports of higher engagement, greater intent to stay, better team cohesion, and stronger problem-solving dynamics.
According to Cedeno, employees feel included when “their voices are heard in meetings; their perspectives influence decisions; they see leaders who look like them; and they don't have to code-switch to fit in.”
Implementing an Authentically Inclusive Workplace
“An authentically inclusive insurance workplace requires intentional cultural recognition, equitable talent practices, and systems that remove bias rather than reinforce it,” says Cedeno. “Inclusion becomes real when organizations move beyond generic statements and intentionally recognize the full spectrum of cultural identities represented in their workforce. That includes celebrating and educating around observances such as Juneteenth, Black History Month, and Kwanzaa, alongside cultural moments from other communities.”
“Overall,” Cedeno continues, “authentic inclusion is not a program, it's a commitment. We need insurance organizations to intentionally recognize culture, remove bias from talent systems, and hold themselves accountable for equitable outcomes, so they create workplaces where everyone has a fair chance to lead, contribute, and thrive.”
Thomson adds that authentic inclusion “goes beyond policies, statements, or annual training sessions. It is reflected in everyday organizational culture—who is heard, who is promoted, who receives opportunities, and who feels psychologically safe contributing ideas.” Insurance organizations, she offers, can foster inclusion by doing the following:
- Creating transparent pathways for advancement.
- Ensuring leadership accountability for DEI outcomes.
- Diversifying hiring panels and succession planning.
- Investing in leadership development programs.
- Encouraging inclusive decision-making at all levels.
- Supporting employee resource groups with executive engagement.
- Providing equitable access to stretch assignments and strategic projects.
“Measurement is equally important,” Thomson adds. “DEI success should be evaluated using both quantitative and qualitative metrics, including:
- "Representation at leadership levels.
- "Promotion and retention rates.
- "Pay equity analyses.
- "Employee engagement and belonging surveys.
- "Participation in leadership development programs.
- "Internal mobility and succession pipeline diversity.
“Cultural change is measurable when employees consistently report that they feel respected, valued, included, and able to advance based on merit and opportunity.”
How Insurance Organizations Can Best Support Black Professionals
“Organizations should move beyond performative diversity efforts and focus on long-term career investment,” says Thomson. “Supporting Black professionals requires intentional leadership development, equitable access to opportunities, and visible representation at senior levels.”
Thomson also emphasizes the importance of building networks that extend beyond Black professionals’ immediate departments by attending industry conferences and leadership forums, joining industry associations and volunteer initiatives, and enrolling in continuing education programs. These opportunities, she explains, “increase exposure, strengthen professional credibility, and create meaningful relationships with individuals who may later become mentors, sponsors, clients, or executive advocates…[and] can help position diverse professionals as the first candidate leadership thinks of when executive opportunities arise.”
Recognizing the value of fostering diverse perspectives in claims handling, litigation strategy, customer relations, and risk management is crucial. “Diverse leadership teams often bring stronger innovation, improved decision-making, and better organizational outcomes,” concludes Thomson. “Most importantly, Black professionals should not only be invited into the organization—they should see a clear path to influence, leadership, visibility, and long-term success.”