The faces and the fortunes of America are changing. Minority populations are growing at astonishing rates, and as these groups assimilate more and more into the American culture and marketplace, they are gaining significant economic power, as well. For the insurance industry, this trend is a billion-dollar opportunity.
So far, only a few carriers have seriously focused on attracting the multicultural market. Others have merely paid lip service to the idea of strategically concentrating on this expanding clientele. But it would certainly be foolish to overlook the minority demographic: specifically, the Hispanic, African-American, Asian, and minority female populations in America.
The facts are unequivocal: Never has there been a better time for appealing to multicultural groups. The question is not whether you should develop a multicultural strategy, but how to do it intelligently, effectively, and sensitively. The answers, in particular, can be as varied as the minority groups themselves. But, generally, here are four critical ways you can solicit and serve these communities with authenticity, care, and energy.
#1: No different than you or me
To do business with multicultural audiences, it is vital to embrace them as fellow Americans. It's not enough to "do the right thing" by expanding into multicultural markets. It has to be about "doing things right" by recognizing that at the end of the day, we are all human beings doing the same thing. Make sure your motives in soliciting business from these minority groups are based on emotional commitments, not rational ones. In other words, you must be prepared to roll up your sleeves, get involved, expand your horizons, and truly care for them as you would any client.
#2: Diversity in your business
If you head an agency, you must show a real commitment by hiring minority men and women who can affect the demographic you're courting. This will enable your organization to broaden its appeal, and these minority agents can also become in-house experts on your diversity initiative. However, a word of caution: Minority agents should not be pigeonholed. They must be allowed to expand their skills, knowledge, and expertise by working with majority clients as well as minority markets.
#3: Education comes first
Educating these groups is just as vital as connecting with them. For different reasons, both Hispanic and African-Americans need to understand the importance of owning health or life insurance. They need to understand the high cost of not having coverage and why they are much more likely to enjoy good health if they do have insurance. If they've never had health or life insurance before, they need to understand how it can benefit them. Also, provide training and development for all of these groups focusing on how they can start and run their own businesses.
The caution here is twofold. First, understand who influences these minority groups and whom they trust. For instance, for many African-Americans, the pastor is often a major figurehead. But for Asian-Americans, well-respected families have the greatest control. Offer your educational and training opportunities through these trusted channels. Others include minority college sororities and fraternities, professional associations, banks and local businesses, organizations, and chambers of commerce.
#4: Being there
When minority associations have conventions, make sure you have a real presence there, not just a trade booth. For example, as a trial, offer members of the National Association of Black Accountants a 5 percent discount to sign up for health or life insurance. Sponsor workshops at the conventions. Sponsor scholarships. Provide each member a one-on-one consultation with an insurance advisor.
Obviously, multiculturalism provides a remarkable opportunity for the insurance industry. The question is, how will you respond?
Simon T. Bailey is a former Disney Institute leader, business speaker, consultant, and author of "Release Your Brilliance." For more information, visit www.simontbailey.com.
