South Carolina Insurance DEI Spending Transparency Act

AN ACT
Although insurance companies collect substantial premiums from South Carolina residents and businesses, policyholders and regulators lack clear visibility into how those funds are used. Transparency regarding insurer spending on diversity, equity, and inclusion (DEI) programs promotes accountability, supports informed rate oversight, and strengthens public trust in the insurance marketplace.

Summary:
AN ACT relating to the disclosure of insurance company spending on diversity, equity, and inclusion programs funded by premiums collected in South Carolina.

SECTION 1. Disclosure of DEI-Related Expenditures by Insurers

Each insurer licensed or authorized to transact insurance business in this State shall annually file a DEI Expenditure Disclosure Report with the South Carolina Department of Insurance no later than March 31 of each year.

For purposes of this Act, “DEI programs” or “DEI activities” mean expenditures, initiatives, training, grants, sponsorships, or other activities that are primarily intended to promote diversity, equity, inclusion, or related concepts within the insurer’s operations, workforce, suppliers, or community engagement.

The DEI Expenditure Disclosure Report must include, for the preceding calendar year:

  1. The total amount expended by the insurer on DEI programs and activities;
  2. A breakdown of DEI expenditures by category, including but not limited to:
    • Employee training or education;
    • Recruitment, hiring, or retention initiatives;
    • Supplier or vendor diversity programs;
    • Community programs, sponsorships, or charitable contributions;
  3. The percentage and dollar amount of DEI expenditures funded directly or indirectly from premiums collected from policyholders residing or domiciled in South Carolina; and
  4. A certification by the insurer’s chief financial officer, or equivalent officer, that the report is true and correct to the best of their knowledge.

The South Carolina Department of Insurance shall prescribe by regulation the form, content, and manner of filing of the DEI Expenditure Disclosure Report.

SECTION 2. Public Disclosure

The South Carolina Department of Insurance shall make each DEI Expenditure Disclosure Report publicly available on its website within thirty (30) days of filing.

The Department may prepare and publish an annual summary report aggregating or comparing DEI spending by insurers operating in South Carolina.

SECTION 3. Enforcement and Penalties

An insurer that fails to timely file a DEI Expenditure Disclosure Report required under this Act may be subject to an administrative fine not exceeding five thousand dollars ($5,000) per violation, and additional penalties for continued noncompliance as authorized under Title 38 of the South Carolina Code of Laws.

An insurer that willfully files a false or misleading DEI Expenditure Disclosure Report may be subject to additional penalties, including suspension or revocation of its certificate of authority, as provided by law.

SECTION 4. Rulemaking Authority

The South Carolina Department of Insurance may promulgate regulations necessary to implement and enforce this Act.

SECTION 5. Effective Date

This Act takes effect upon approval by the Governor and applies to DEI Expenditure Disclosure Reports filed for the first full calendar year following enactment.n or after that date.