To Realize Markets Potential, Discard Myths, Old Thinking

Hispanics have the same insurance needs as any other group of consumers, says Steven Larsen, a partner and vice chair of the insurance practice with Saul Ewing, and former Maryland insurance commissioner. But they need companies which can better market and reach them, he continues.

For instance, he says, more companies could consider putting policy language in Spanish so people “dont have to struggle through policies.”

Hispanic consumers “need to know they are being talked to. And, for sure you are being talked to, if they are speaking your language,” says Hector Orci, CEO, co-founder and co-chairman of La Agencia de Orci Asociados, in Los Angeles.

If your market is the Hispanic community, then Spanish language TV and radio are very effective ways to achieve this goal, Orci says.

The cost per thousand viewers for Spanish television is 40%-60% less than for English-language television because you are reaching a higher percentage of your targeted market, he says.

But “in the Latino market, all media forums are available and all work if used properly,” Orci continues. The population is exploding, so “we have plenty of people who watch TV, go on the Internet and open their mail,” he says.

Providing information is a good way of reaching that market, he says, adding that when you provide that information, keep it simple.

Hispanic consumers are loyal to a brand but also have the highest rate of product trials before lending their support to a product, he notes.

Reaching the Hispanic market means being within reach, says Nancy Dwyer, executive vice president of American Skyline Insurance Company, Baltimore. American Skyline sells personal lines and small business insurance in the Baltimore-Washington area.

Being within reach of the community can range from speaking engagements to having a booth at a neighborhood street fair with agents present to close on contracts, she explains.

Other ways that American Skyline reaches Hispanics include advertising in Hispanic newspapers such as Washington Hispanic and in the Spanish Yellow Pages, Dwyer continues.

The company also plans to advertise on cable TV, she says. Spanish radio is another possibility, although Dwyer says it is expensive. However, she adds, she is optimistic that Hispanic groups to which her company belongs can help negotiate rates a 2-year-old company can afford.

But knowing and acting on what the community needs may be the best way to become part of that community, interviews suggest.

For instance, statistics released by the Census Bureau in March 2003 indicate that Hispanics have the lowest rate of high school and college graduates among racial and ethnic groups.

Although those interviewed say that growing affluence is changing this, they acknowledge that trying to fulfill a need can bring a company closer to the community.

As an example, State Farm Group, Bloomington, Ill., provides 20 annual scholarships of $2,500 to Hispanic students pursuing a teaching career, says Jenny Davis, Senior Program Coordinator with State Farm Companies Foundation. The program is administered by The Hispanic Scholarship Fund.

And, Ben Austin, a spokesman for the New York City Fund for Public Schools (Fundforpublicschools.org), enumerates several ways corporations can help Hispanic public school children including funding school libraries in Hispanic neighborhoods, college and career centers within these schools, and scholarship and internship programs for the public schools Hispanic students.

Reproduced from National Underwriter Life & Health/Financial Services Edition, March 12, 2004. Copyright 2004 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.