More than a decade ago, the life insurance industry experienced a seismic shift as many career agents made the transition to become independent producers. Today, an echo boom is taking place as significant numbers of multicultural agents make the leap from being career agents to starting agencies of their own.
The multicultural producer pool has grown in response to the growth of the minority market, which now represents nearly one-third of the U.S. population. And as the minority population has increased, so has its wealth, education level and openness to new products.
Today’s multicultural prospects are more affluent, better informed and more interested in preserving their wealth for their dependents. And like mass-affluent mainstream Americans, they’re also open to a broader selection of insurance solutions that allow them to grow and transfer their wealth.
As multicultural producers work to service this market–and to start their own agencies in unprecedented numbers–there exists a tremendous opportunity for carriers and independent distribution organizations to support them. How can independent marketing organizations (IMOs) and brokerage general agencies (BGAs) capitalize on the significant multicultural life insurance market share that’s up for grabs?
Do your own multicultural awareness training
“In-language” marketing materials are critical to success in multicultural markets. Product brochures, business cards and direct mailers should all be available in the languages native to the target audiences. But to communicate with multicultural markets, life insurance distribution organizations must do more than just translate flyers or include images of diverse people in their marketing materials.
IMOs and BGAs must understand the diverse needs of multicultural populations–and what they may be apprehensive about. For example, paying for the care of elderly parents may be of particular concern for one community, while certain other communities may have a greater need to finance small businesses.
By demonstrating an understanding of the relevant culture, you establish your credibility in front of multicultural producers and customers. In some of these markets, you only have one chance to make a first impression when it comes to recruiting or selling. If you believe you need professional help from a carrier that is knowledgeable and experienced in these markets, don’t hesitate to ask.
Find and support your internal champions