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Lost in Translation: Multicultural
Marketing Means More than Language
by Rick Niu

   Some say there is no more growth in the life insurance industry. I disagree. There are unprecedented opportunities if you are willing to tap into the multicultural market. The U.S. Census Bureau predicts that, in around four years, one in three Americans will be of a non-Caucasian ethnic origin. Are you positioned to serve this market? Will you be among the first to grow your share of this market or will you wait until it’s too late to ride the wave of this giant demographic shift?
   Three phenomena have made entering the multicultural market attractive to insurance and financial services companies and distribution organizations. The first is the rapid increase of multicultural populations in the U.S. According to a LIMRA International report, over the next 15 years, the Hispanic population is expected to increase by 24 million -– more than twice the number that will be added by the majority group.
If you are looking for the next emerging affluent market, look at the Hispanic market, which many predict, will be a significant segment of the affluent population in the next decade.
   The second phenomenon has two parts: Along with the rise in numbers, there has been a corresponding increase in the wealth of the multicultural market thanks to higher education, strong work ethics, and a tireless pursuit of the American dream. This has led to better access to information, resulting in better-informed consumers who want choices and quality. The broadly affluent Asian population, already 13 million strong, is an excellent example.
   The third phenomenon is the willingness of these markets to use life insurance products to protect and transfer wealth and to accumulate lifelong wealth. Among multicultural customers, there is increasing acceptance and preference for mainstream products and advanced solutions provided through independent advisers.
Put all of these together, along with some other characteristics of these groups. For example, many are small business owners with the business being their only source of income.
   With multicultural consumers, you have a market ripe for the solutions that only an insurance professional can offer. They are more likely to live in households with children. Paying for college is a top concern and the vast majority has no financial adviser. Based on our experience, the number of bilingual independent advisers is growing rapidly in key multicultural states and cities across America.
   Many insurance carriers, distribution intermediaries, and individual producers are trying to pursue this lucrative market sector in a variety of ways. Some are more effective than others are. For example, just providing word-for-word translation so brochures are “in-language” is not multicultural marketing, nor is placing someone of a culturally diverse background in a television commercial to promote a product that most Americans stopped buying years ago.
   Multicultural marketing starts with an insurance entity’s commitment to understand and embrace the language, the “in-culture” mindset, and the needs and desires of people in these diverse markets. This is true whether that entity is a carrier, independent marketing organization (IMO), brokerage general agency (BGA), or financial adviser. If the multicultural market is the next frontier -– and I wholeheartedly believe it is-– it has to be given more than lip service.

Finding the Right Multicultural Partner
   Distribution organizations can tap this widely expanding market by seeking partnerships with the increasing numbers of multicultural producers who own independent agencies. Help these advisors strengthen their community connections by encouraging them to hold educational workshops and sponsor community events.    Through co-op advertising or sponsorship dollars, IMOs/BGAs, and life insurance carriers can demonstrate a willingness to work within these communities over the long haul and further ingratiate themselves with multicultural independent agents and their clients.
   Community service is only part of the equation. An insurance company brand can help you solidify a relationship with a high-caliber producer and secure a sale with an affluent multicultural customer – particularly brands with deep cultural roots across the globe. The adviser and carrier complement each other’s business and bring more value to the multicultural consumers, expanding opportunities for success.

Not So Different After All
   For all the differences between the multicultural and the broad American market, there are similarities as well. Multicultural Americans share the same financial goals and insurance needs. They pay taxes and hope to pass some of their wealth to the next generation. As entrepreneurs, they operate under the same laws and business regulations. Like all  Americans, they are concerned with the well-being of their families.
   Likewise, multicultural Americans want the same qualities from an insurance provider that other Americans want. According to LIMRA, multicultural Americans want a financial provider that is financially stable, has a good reputation, offers affordable and reasonable rates, and has been in business for a long time.
   Where multicultural Americans may have distinct needs is in their choice of a financial adviser. According to LIMRA, they prefer an adviser who understands their cultural heritage and speaks their language.
   It doesn’t matter in which language you say it when carriers, intermediaries, and independent advisers combine financial strength, competitive products, attractive compensation, a proven reputation, and ease of doing business with cultural understanding and the ability to build strong relationships, everybody wins -- todos ganan or da jia yi qi cheng gong.
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Rick Niu, CLU, is vice president, Corporate Multicultural Marketing for AIG American General. He is responsible for multicultural growth strategy and execution across AIG’s domestic life companies. Member insurance companies of the AIG organization include the largest life insurer in Southeast Asia, Hong Kong, the Middle East, the Philippines, Singapore and Thailand; number one foreign-owned life insurance operation and top provider of annuities through banks in Japan; the only 100-percent wholly owned foreign life operation in China; and the first foreign life insurer in Egypt and Japan. To contact Rick, email rick_niu@aigag.com.