Black History Month: The Key Contributions of African Americans in the Insurance Industry in the United States
Frederick Mutual celebrates Black History Month by highlighting the contributions of African American business and community leaders to the growth of the insurance industry in the United States. These contributions are documented in a publication authored by Natalie Burclaff entitled, “Honoring African Americans: Cornerstones of Economic Development – African American Insurance Companies”. This insightful publication, housed in the Library of Congress, explains how certain key African American leaders in Philadelphia in 1787, overcame discrimination, to create an organization called the Free African Society, the purpose of which was to provide financial and other assistance to African Americans in need. The impact of this organization is more fully detailed in a complimentary article “The African Insurance Company” on The Black Past by Elliot Partin. Partin explains that The Free African Society was established for impoverished communities to create “a pool of money from which to draw if women were widowed, a member fell sick, or to provide a Christian burial for a member who died.” Members were charged a monthly premium to help cover the costs of other members who faced arising needs; thus, serving as the template for future black-owned insurance companies.
In that regard, the Free African Society model, by Partin’s account, encouraged three key business leaders, President Joseph Randolph, Treasurer Cyrus Porter, and Secretary William Coleman to create the first African American insurance company in 1810 in Philadelphia. That insurance company, The African Insurance Company, built upon the model of the Free African Society and sought to provide insurance protection to any African American in Philadelphia who could contribute monthly premiums. Partin emphasizes how these early efforts paved the way for the success of post-Civil War African American owned insurance companies.
One of the most successful of such African American owned insurance companies was the North Carolina Mutual Life Insurance Company in Durham, NC founded in 1898. This Company was founded by three of Durham’s most influential businessmen: John Merrick, Aaron McDuffie Moore, and CC Spaulding. Each one of these individuals had primary careers as physicians and businessowners, but they shared a philanthropic focus. According to Burclaff, they used the capital and influence gained by North Carolina Mutual Life Insurance Company to infuse prosperity into many black-owned businesses in Durham, which made that city one of the most thriving locations for African American businessowners.
We should all be aware of and celebrate the contributions of the many African American business and community leaders who paved the way for socioeconomic stability, protection, peace of mind for communities, and those who have helped shape businesses and insurance companies alike today.
To read the articles cited above please visit: