Agents Can Guide Carriers In Understanding Diverse Cultures
To develop a better understanding of different customs among various ethnic groups, say insurance professionals, local minority-owned agencies could serve as useful resource centers for insurers.
"There are some differences that we have seen, such as languages spoken or attitudes towards insurance, and agents can help identify these differences," said Don Davis, director of urban and emerging markets at Hartford, Conn.-based Travelers Property Casualty Corp.
"Carriers have to analyze how they can better tap into the diverse market," added Sandra Lee, the chief executive officer at Harold L. Lee & Sons Inc., a minority-owned agency in New York. "The [U.S.] Census shows that there are multi-cultural communities popping up all over the country, so they have to try to be more open-minded with the changing demographics."
Ms. Lee explained, for example, that new immigrants often decide to buy simple homeowners insurance that covers just the real estate. And they decide to get coverage for valuables and contents later when they become more comfortable and more assimilated in the country.
When new immigrants decide not to buy full homeowners insurance right away, it's often because they don't understand what the umbrella policy covers, she said, and it's important to educate such clients about insurance in their own native languages.
"If you can't explain it in clients native tongue, typical Asian clients would still politely nod their heads, but not really understand it," she explained.
"Also, many clients are somewhat superstitious. When selling life insurance, for example, you have to explain that it's a positive way to protect a family."
"Different ethnic market segments all have different cultures," noted Joe Hernandez, chairman of diversity task force at the Independent Insurance Agents & Brokers of America in Alexandria, Va. "So if you are marketing to them, you have to understand their cultures."
"A lot of minority clients don't understand insurance so they have to be educated on why they need it," he continued. "They aren't familiar with it because, in some cultures, it's not something people are used to."
Such cultural differences get diminished as immigrants adapt to the new country, he added. "But you are also going to have more immigration. There will continue to be minority clients who will feel more comfortable with people who speak their own languages and understand their cultures."
Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, January 20, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.
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