The Trending Hispanic Market: Growth and Needs in Statistics

The Trending Hispanic Market: Growth and Needs in Statistics

 

With US economy still in the process of recovery, insurance brokers and agents are now starting to look for more ways on how they can maximize their full earning potential. One approach many have delved into is reaching out to the US Hispanic market.

 

Why the US Hispanics?

 

According to the US Census Bureau, the US Hispanic market is a powerful group making up 16.3% of the entire US population with purchasing power of up to $1 trillion. But it doesn’t end there. By 2050, the market is projected to grow up to 30%. Despite the exemplary demographic, however, US Hispanics remain traditionally underserved especially in terms of insurance. 37% of Hispanics have admitted that they have no insurance of any kind to protect their families, belongings or even themselves.

 

In a LIMRA study, it was found that majority of Hispanics in the US know about the basic benefits life insurances can offer. 87% have admitted needing life insurance for burial coverage and to answer all other final expenses that may occur following their death. However, according to that same study, 64% has expressed as well that the reason why they don’t avail of life insurances is because they think these are too costly, even when a policy only averages around 42 cents per day. Without insurance coverage Hispanic families are risking unforeseen financial challenges, following the demise of a breadwinner.

 

Further research has also shown that many Hispanic workers have a sense of vulnerability when it comes to their financial status. 43% of the workers surveyed in the 2012 AFLAC Workforces Report expressed that they have no confidence in their ability to handle any kind of financial impact that may result from an unanticipated event. Only 8% expressed extreme confidence and 15% stated they were very confident about the future of their financial situation. 20% fairly agreed that their dreams and goals were financially protected.

 

These statistical findings hint that there are many in the Hispanic community who has yet to be informed about the long-term benefits of having life insurance. The misconceptions on the affordability of insurance solutions also represent a call for brokers and agents to clear up existing confusions and introduce mutually beneficial insurance options.

 

Getting the most out of these opportunities require sellers to exude effort in understanding the Hispanic custom imperatives. They need to be able to understand the customs and traditions that will help them gain the trust of their potential clients.

 

The Top 7 Metro Areas to Market

 

In a study led by Pew Hispanic Center, it has been revealed just how the Hispanic market remains consolidated to this day. 45% of the entire Hispanic population in the nation lives in only 10 metropolitan cities. The top 7 cities are listed as follows:

 

  • Miami Florida – 65.7%
  • Riverside, California – 47.4%
  • Los Angeles, California – 44.5%
  • Houston, Texas – 36.3%
  • Dallas, Texas – 27.9%
  • New York, New York – 23.9%
  • Chicago, Illinois – 21.1%

 

The market of US Hispanics in these districts is a huge opportunity for insurance agents to significantly expand their consumer bases. Being with limited knowledge about insurance options, these people need well-informed, personalized counseling on customized insurance solutions and options. Agents who wish for better sales would definitely be better off focusing on building mutually beneficial relationships within the growing market of US Hispanics.

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