Paid How investing in Purpose helps insurers and brokers future-proof their business and make an impact

Post-pandemic, “Purpose” is no longer just a buzzword used by HR and communications professionals. Today, investing in strategic Purpose initiatives has become a business imperative – and Gore Mutual’s industry-leading Purpose Partnership recently proved why.

The Purpose Partnership saw Gore Mutual bring together 11 brokerages with the objective of demonstrating the true business impact of investing in Purpose.  This was done through capacity building and education, custom research and a fund specifically for investing in community initiatives – all to demonstrate the true value and impact of investing in strategic Purpose-driven initiatives, including Climate Change, Diversity, Equity and Inclusion, Social Impact and Sustainability.

“At the end, the research showed 99% of broker respondents recognize the business threats of ignoring Purpose, include falling behind competitors and reputational risk,” says Gaby Polanco Sorto, Vice President and Head of Purpose & Sustainability at Gore Mutual.

In addition, 93% see the value in discussing Purpose with clients with results including building deeper relationships and enhancing loyalty.

And, when asked which area they will see the most value from investing in Purpose, brokers placed business strategy and resilience at the top.

“I think as an industry, when we used to talk about Purpose we mostly thought of small charitable actions, such as donating to community causes or employee volunteerism,” Polanco Sorto says. “With the Purpose Partnership, Gore Mutual set out with our broker partners to have a much deeper social impact, and at the same time, to demonstrate the tangible Return on Investment that can be generated from a dedicated Purpose strategy.”

A partnership with purpose

“From September 2022 to April 2023, the Purpose Partnership provided brokers with unique access to world-class expertise in Purpose and Sustainability through Gore Mutual’s affiliation with leading associations and academia, including LBG Canada and NYU Stern Center for Sustainable Business,” Polanco Sorto explains.

The second phase of the project saw brokers helping Gore Mutual shape commissioned research designed to give the industry a better understanding of the value that insurance professionals, brokers and consumers are placing on Purpose. “Brokers had first access to insights and analytics that would help them leverage Purpose for the benefit of their communities and help add business value.”

The research, led by RKI (Research + Knowledge = Insights) and involving broker, consumer and P&C carrier surveys, revealed that the majority of brokers (99%) and 86% of consumers consider Purpose initiatives as important for insurance companies to focus on.

“From a broker perspective, the data really validates there is a business imperative for investment in Purpose,” Polanco Sorto adds.

“What fascinated me – and this is something we wouldn’t have seen a few years ago – is that more consumers than ever before are placing a higher value on companies focused on Purpose, in particular on issues like climate change. Even in economic uncertainty, almost half say they would switch carriers to a more Purpose-driven company, while 67% would be inspired to select a carrier that was Purpose-driven,” Polanco Sorto says, adding that Gore Mutual will be releasing another wave of related research later in the year.

“The data also reinforces that diversity and having an inclusive culture is not just a nice-to-have, but it really impacts our mental health – especially for the generation just entering our workforce. We also see how essential a solid Purpose strategy has become to help brokers overcome talent issues like attraction and retention of younger and diverse talent, all which can translate into a clear monetary return on investment,” Polanco Sorto says.

For example, the data showed that “Positive Workplace Culture” is the number one benefit of Purpose-driven initiatives for insurance professionals, followed by customer retention.

An additional insight on workplace culture was that insurance professionals seem to experience mental health stressors at a high rate (74%) with Gen Z more likely to experience mental health stressors (84%) – but organizations with a clear focus on Diversity & Inclusion at the leadership level see that drop to 53%, Polanco Sorto highlights.

“At the end of the day, Purpose is what’s going to differentiate a broker and insurer to their employees, their customers and their communities,” she adds.

As was evident when brokers put their learnings into practice with the Purpose Partnership’s seed funding of $250 000 aimed to support brokers in launching social impact initiatives. With financial contributions from brokers totaling an additional $264 000, together the Purpose Partnership benefited several community initiatives, including Habitat for Humanity, Feed the Future, LYNC, and Thrive Youth.

“It was fascinating and inspirational to see the impact of these brokers’ Purpose-driven initiatives – with overwhelming positive engagement and feedback,” Polanco Sorto says. “At the same time, all participating brokers recognized that while we are on a journey, a Purpose-driven strategy will benefit their business in the long-run.”