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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.
