Integrating an insurance MBE into your growth and diversity hiring plans in 2021
As retail insurance agencies develop plans for their 2021 growth and diversity hiring, might a partnership or minority buy-in with an insurance agency MBE (Minority Business Enterprises) make sense for your firm? At The Rogan Group, Inc. (Risk & Insurance Management Recruiting) we noticed this trend with a number of the Top 100 retail insurance agencies to date.
There are 4+ million MBE’s in the United States, and those firms created 4.7 million jobs in the last ten years according to the U.S. Bureau of Labor . The percentage of nonwhite insurance workers in the U.S. was 15.3% in 2010 and is slightly over 21% in 2020, and those numbers are moving in the right direction but we all have work to do. A way to stay connected to Top Diversity Talent is to align with an insurance agency MBE.
Two ways to align with an MBE might be:
1. Buy minority interest in the insurance agency MBE
To qualify as an MBE, the company needs to be owned and controlled 51% by socially or economically disadvantaged individuals who are citizens in good standing of the United States. Qualified persons include Asian Indian, Asian Pacific, Black, Hispanic and Native American people. There were 744 announced insurance agency acquisitions in 2020 (up from 649 in 2019) according to Business Insurance Magazine, thus insurance agency MBE entities should be part of your review process.
2. Register as an insurance agency MBE if you qualify
Visit the National Minority Supplier Development Council at http://www.nmsdc.org to get an application and review all the requirements for MBE certification. Benefits of being certified include: access to government grants & contracts, tax breaks for the companies working with the MBE, increased business partnerships, and technical training.
Either of these tactics could be a great way to integrate an MBA into your growth plans, if you have any questions feel free to shoot us a note.