New Directions in the Asian-American Insurance Market

New Directions in the Asian-American

Insurance MarketTeam Rubicon

University of ConnecticutGoldenson Center Undergraduate Case Study

Our Challenge

●Background:●We are the Southwest region of Travelers in the United

States ●We write 4 lines of business

●WC, Property, General Liability, and Commercial Auto

●Given the task of analyzing our company’s current position and developing a five year business strategy to increase profitability

●Our Goal:●Target the Asian-American market

Addressing Our Current Business

● Statewide Perspective - Texas:● The amount of premiums for Texas is larger than

all other states combined● Improving profitability in this state would

significantly increase the earnings power of our region

● Lowest retention compared to every other state in all four lines of business

Company data provided by Travelers

The Solution● Our focus: Increasing retention● Retention goals and strategies:

● It costs 7-9 times more for an insurance agency to attract a new customer than to retain one. (The Independent Insurance Agents of Dallas)

● Focus our time and resources on our most profitable policyholders

● Retain profitable customers by supplying them with superior client services● Increased client contact

Readjusting Wholesale

Company data provided by Travelers

Readjusting Wholesale● We aim to improve profitability of monoline clients and

improve flexibility of premium adjustment for multi-line clients

Considerations ● Is adjusting our current business is enough to meet our

overall goal and target combined ratios?

Company data provided by Travelers

The Asian-American Population

● The population of Asian immigrants is growing at a rapid rate.

● The number of Asian-owned businesses are also increasing in stride.● The number of Asian-owned business grew over 40%

between 2002-2007 ● Important in future growth of our business

Financial Stability

● The median Asian household income in the United States is significantly higher than the national average.● More likely to buy comprehensive products

● Increases revenue● Asian-Americans are likely to remain more financially

affluent ● High rates of education

● Expected long-term stability

Insurance Risk

● The Asian-American population is a low-risk group● Unlikely to experience a fatal accident due to incidents

of drinking and driving● Higher levels of education lead to more risk-averse

behavior● The Asian labor force is largely uninvolved in the top 10

riskiest jobs● High concentration in low-risk office and tech jobs ● Lower expected claims in Worker’s Compensation

Source: Bureau of Labor Statistics

Marketing to the Asian-American Demographic● Foreign social media platforms

● WeChat● Kakao Talk, Nimbuzz, HIKE

● Large international useage● Using an app like WeChat, consumers will:

● Be able to view our advertisements● Purchase our products● Give us immediate feedback● Refer fellow users

Source: Chan, Stephanie Ellen. ReadWrite.

Advertising

Services for the Market

● Bilingual client services● Focus on Chinese, Filipino, Indian, and Korean languages● Brokers● Translating website

● Instills trust● Provides ease of use for the customer

Source: SNL Database

Implementation

Year 1Set the

Framework

Year 2Commence

Sales in California

Year 3Reception

Year 4Financial

Adjustment

Year 5Expansion

Here to help you feel at home.

Contact InformationAndrew Damon-SmithAndrew.Damon-Smith@uconn.edu

Nicholas FreiNicholas.Frei@uconn.edu

Yanhan WangYanhan.Wang@uconn.edu