According to Forbes there are 5 types of insurance that you as a person must have as follow: Long-Term Disability Insurance, Life Insurance, Health Insurance, Home Insurance, and Automobile Insurance.
Claudia Ruiz receives voter registration materials in Las Vegas, Nevada.
(Photo: Isaac Brekken / AP)
As the Hispanic population surpasses 40 million with a combined purchasing power of more than $700 million, the insurance industry is keeping its eye on this ever-growing market segment. Hispanic agents and Latin agent insurance associations are playing an increasingly important role in representing minority agents and consumers, but are they been successful? I don’t think so, but let’s keep reading and find the answer.
What are Hispanics purchasing with all this buying power?
According to a study “Trends in Marketing Insurance to Hispanics†by FSU: Increasingly, cars and homes.
Hispanics accounted for 6% of new vehicle registrations in 2003. In addition, between 1994 and 2004 Hispanic home ownership rose an entire 8%, from 41% to 49%. 3 These statistics show that the stereotypical image of the poor Hispanic farm worker is being replaced with a new Hispanic identity.
Hispanics are becoming progressively wealthier and car manufacturers and real estate companies are taking note. Toyota and other manufacturers have been targeting the Hispanic consumer with culturally-specific marketing campaigns.
However, these increases in car and home ownership are also causing another industry to finally wake up to the Hispanic market: the insurance industry.
Below is a hint why insurance company has not been successful selling insurance to Hispanics.
Increased budget in marketing spending does not automatically translate in higher numbers of Hispanics purchasing insurance. Insurance companies targeting Hispanic consumers must overcome numerous cultural and educational barriers. In most Latin American countries, insurance for major investments such as homes and cars is not obligatory. Moreover they are relatively uninformed about insurance and its importance in U.S. society.
Insurance is never considered something you must have. It is not like food. Some people even think that it is a waste of money. Many others would think it is something you can live without even more complicated to overcome than the above-mentioned educational barriers are certain Hispanic cultural beliefs such as the unpredictable nature of life and the desire to “live for todayâ€.
Now here is a personal issue that I have with insurance companies and this affects everybody regardless or race, color of the skin or income. If you have let’s say for instance a car insurance policy which is mandatory to have and you are in an accident, even before you make the claim you start to balance in your head between the cost of the damage and the higher premium that you will get because of the claim.
Why the increase in the premium? Because insurance companies want to penalize you for making the claim, but I will say to them what about all the years I paid you lots of money without a claim? They might answer to you “I don’t care!â€
In this country everybody is in fear of been in a law suit, in an accident or some type of calamity; that is why the insurance company take advantage of you. Regretfully because the economic system in place you must have insurance, but we need from politicians better regulations.
I have been very successful in selling health insurance to Hispanics in America.
My strategy is completely different than the major insurance companies in America. Most just want to produce brochures in “Spanish” and expect products to sell instantly.
Years ago while sitting in a meeting with one of the largest insurance corporations one of the Sr. VP’s of the company said (when the conversation turned to marketing to Hispanics). “marketing to those folks is a waste of time, most can’t even read.” After a few minutes he remembered I was sitting in the room, and he looked over and said, “oh, I did not mean you”.
I only hope Hispanics would continue to purchase products from each other, we will all make each other quite wealthy if we all just purchased products from each other!
Stay Healthy,
Rudy Rivas, President
Hispanic Insurance
I agree with you; there are a lot of mistakes made by marketing companies targeting Hispanics, they think because we all share the same language we think the same; we have different cultures, roots, food, etc.
and yes we should support each other doing business, friendships, etc.