New Directions in the
Asian-American
Insurance Market
Team Rubicon
University of Connecticut
Goldenson 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 1
Year 2
Set the
Commence
Framework
Sales in
California
Year 3
Reception
Year 4
Year 5
Financial Expansion
Adjustment
Here to help you feel at home.
Contact Information
Andrew Damon-Smith
[email protected]
Nicholas Frei
[email protected]
Yanhan Wang
[email protected]