The average giving levels of foundations in the Property & Casualty (P&C) insurance industry have gone up about 15% overall between 2011 and 2014, according to a new survey released Feb. 25 by the Insurance Industry Charitable Foundation (IICF). IICF partnered with McKinsey & Company and the Insurance Information Institute (I.I.I.) to assess charitable giving across the P&C industry from the largest carriers to the smallest agencies nationwide.
As giving levels increased from 2011 to 2014, the P&C industry's perception that giving is at an appropriate level that meets public expectations also increased. In the latest survey, only 17% of respondents said they believed the industry giving level was below public expectations, which is down from 42% in 2011.
"The major areas of giving in 2014—health and social services, community needs, and education—remain the same as in 2011," said Ido Segev, a consultant with Mckinsey. "The survey also found that education funding decreased by about 50% while health and social services increased by about 50% and community funding increased by about 70% over the same period.
Reasons for giving
The top 3 reasons for corporate philanthropy remain the same for 2014 as 2011:
- Meet local community needs.
- Align with business needs.
- Retain stakeholder interest.
When asked about the alignment with business needs, the survey respondents said that they were looking to:
- Enhance brand awareness and maintain their corporate reputations,
- Recruit employees, and
- Improve customer relations.
Better tracking needed
Generally, the companies in the survey don't attempt to quantify the social impact of their charitable efforts. Segev encourages them to track their giving by whatever measures and metrics the companies deem appropriate. "If you can measure it, you can improve your impact," he says.
As for educational giving, Segev notes that the research focused on giving directly to educational institutions, organizations, and programs such as the YMCA. It didn't take into account amounts given by companies as a benefit to their employees to further their education. He explains that the survey measured employer matches to employee contributions but not the employee contributions themselves. The survey also converted the value of volunteer hours to dollars for purposes of calculating contributions.
Robert P. Hartwig, Ph.D., CPCU, and president of I.I.I., said that the P&C industry is paying special attention to targeted community alignment. He cited the example of the industry's response to the devastating tornado that hit Moore, Okla., on May 20, 2013. First, area residents saw the P&C industry from day one, helping them manage their claims. Six months later, the residents saw the industry back in Moore, providing contributions to community organizations to help them rebuild their town.
Donations through partners
In addition to the $1 billion donated by the P&C industry, about half is given through partners while the remaining $500 million is given directly, says Bill E. Ross, CEO of IICF. He adds that "IICF has a volunteer portal on our site at which companies can register the number of volunteer hours their employees provide to charitable organizations. This gives all P&C companies a set of standards and benchmarks to measure their own charitable giving against."
Ross adds that IICF is growing and adding chapters, reflecting an increased interest in corporate philanthropy and giving back to the community, especially among millennials joining the profession. IICF also has established associate boards in certain locations to attract P&C industry professionals who have been in the industry for less than 10 years. "It's a way to refine leadership skills within the industry as well as the community," he says.
In addition, the organization is expanding globally by establishing its first chapter in London, which is scheduled to open in April of this year. "We're also hosting the IICF Women in Insurance Global Conference again," Ross says. "It will be a great opportunity to share insights and best practices." The conference will be held from June 17–19, 2015, in New York City. More information is available on the conference website.
For more information about the survey and its results contact IICF at contact@iicf.com.
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