Published: November 2020

Studies show systemic racism in insurance industry

Consumer Action joined a coalition of consumer and community activists in submitting comments to the National Association of Insurance Commissioners' Special Committee on Race and Insurance urging them to focus efforts on creating tools to help states and insurers identify and combat systemic racism in insurance. Studies over many years have shown elements of racism in pricing, placement of agents, redlining and other aspects of insurance. But systemic racism is not found in just a few elements of insurance; it casts its shadow across all aspects of insurance and needs to be confronted in a systematic and holistic manner.

A comment letter to the National Association of Insurance Commissioners (NAIC) calls for its Special Committee to avoid meetings with debates about the existence of systemic racism, but instead move quickly to identify the places it appears and develop the strategies needed to address it. In the wake of the Black Lives Matter movement, the nation now realizes that systemic racism exists throughout society, and insurance is no exception.

Specifically, the groups’ comments call for the following from the NAIC:

· Examination of the ways systemic biases impact underwriting decisions, premiums, claims handling, and fraud investigation; 

· Detailed recommendations to states and insurers on how to test for disparate impacts and eliminate unfair discrimination and racism in the industry; and

· More robust data collection of insurance market outcomes and data transparency, so advocates, insurers, and regulators can more effectively stop discrimination.


Lead Organization

Consumer Federation of America

Other Organizations

Center for Economic Justice | Consumer Action | Consumer Federation of America | Consumer Federation of California | Consumers for Auto Reliability and Safety | Consumer Reports | Consumer Watchdog | CPAN, The Coalition Protecting Auto No-Fault | Kentucky Equal Justice Center | Los Angeles County Department of Consumer and Business Affairs | Maryland Consumer Rights Coalition | Minnesota Asset Building Coalition | National Community Reinvestment Coalition | Strategic Actions for a Just Economy | Texas Appleseed | Vehicles for Change | Virginia Citizens Consumer Council

More Information

Click here to read the comment letter in full.

For more information, please visit CFA.

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