Three things insurance should know to serve Hispanic communities better

The U.S. Hispanic population represents the second-largest Spanish-speaking country in the world, with more than $1.5T in purchasing power. Conning Research predicts there will be more than 30 million new Hispanic drivers hitting the roads through 2050, and the National Association of Hispanic Real Estate Professionals predicts they will be the largest group of homebuyers in the country by 2030. Not to mention that Hispanics are the fastest-growing group of entrepreneurs, according to the Stanford Latino Entrepreneurship Initiative.

Despite these opportunities, many in the community struggle to get insurance and have been poorly served by the incumbent industry. This presents a glaringly overlooked, underserved opportunity for insurance professionals up and down the value chain to better serve this customer.

In order to better position your company to capitalize on the Hispanic opportunity, here are three important points to keep in mind.

Hispanics in the U.S. prefer to speak Spanish

Spanish has been spoken in what is now the United States since the arrival of Spanish colonizers in the 15th century. According to Pew Research, 73% of Hispanics ages 5 and older speak Spanish in their homes, further validating that the Spanish language is ways away from dying out in the United States, as some other foreign languages have.

So what can you do about it? If you interact with the insured, you can provide Spanish language resources and support for them. Hire employees that speak the language and know the community.  Develop Spanish language marketing materials to attract customers. While these are simple steps and adjustments, they will have a lasting impact on the customer.

U.S. Hispanic consumers primarily buy auto and health insurance

Sell the products the Hispanic market needs and purchases. This one seems like a no-brainer, right? This is the challenge I see with many insurance companies that “want” to serve the community but have not been successful.

Given the socioeconomic characteristics of the population, Hispanics focus on buying the insurance they need. This includes basic auto insurance and basic health insurance. The caveat with auto insurance particularly is the difference in coverage, so make sure you’re providing options for state-minimum liability limits (traditionally called “non-standard”). Providing your Hispanic customer with a delightful experience purchasing either of these will pay dividends more often than with other demographic groups – since Hispanics are more likely to stick with a solution they like.

Hispanics are ‘super mobile, super consumers’

According to Nielsen, Hispanics spend more than 14 hours a week on their phones. The supercomputers we have in our pockets provide an unparalleled opportunity to better serve your customer by getting in front of them to present your solution. The community uses their phones for research, entertainment, and purchasing. Using mobile tools and channels to reach and service this customer will help lower your costs.

Those who recognize — and act on — this demographic shift early will reap the rewards for years to come as they build trust, loyalty, and customer data, all critical components to better serving the Hispanic community.

Nestor Solari is the co-founder and CEO of Sigo, a bilingual, mobile-first auto insurance agency focused on serving the Latino community. Connect with him on LinkedIn here or contact Sigo at info@sigoseguros.com.

The opinions expressed here are the author’s own. 

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