Industry cannot ignore Hispanic buying power

As might be expected, diversity was discussed in virtually all lines — employment practices liability insurance, commercial, health, Mexican and life — among other agency management topics at the recent Latin American Agents Association 7th annual convention & 1st annual national conference in Long Beach, Calif.

In particular, speaker Dr. Marcellus Andrews, an economist with the Insurance Information Institute, reinforced conventional wisdom about growing Hispanic buying power, while imparting new information about the global economy. Andrews explained that agents and brokers are “caught in the jaws of a global economy in which companies seek profits through reduction of costs.” Producers are, in essence, the arbitrator between those companies and insurance consumers looking for cost-effectiveness and quality service. They stand between those who need protecting and those who provide that protection, he said.

To that end, Andrews stressed the importance for agents to keep pulse with their local communities — including the Hispanic and Latino communities. Direct writers rely largely on statistical knowledge when marketing to a group — reports on how that community would hypothetically react to a campaign, studies of the alleged demographic and cultural breakdown, etc. Therefore, companies that use local agents have an advantage. Because agents are the conduits of local knowledge for companies, if they throw away local knowledge and ignore diversity, they could “potentially make enemies of a potentially lucrative market,” Andrews noted.

For more conference highlights, visit www.latinagents.com.

Don Lukenbill is communications director for the Latin American Agents Association.