Insuring the American Dream

I listen to an “Oldies” radio station while creating the FYI in my basement office. The song “America” by Neil Diamond just finished and its words continue to swirl around in head.

America ... Land of Opportunity. Land that I love. Land of the Free. Long may its Flag wave. Home of the Brave

America ... a nation of immigrants that continues to be a beacon of hope and land of opportunity to immigrants seeking the American Dream.

Hispanics are America’s fastest - growing minority group. They have influenced America’s popular culture and its culinary tastes: salsa has replaced ketchup as the nation’s favorite condiment.

The Census Bureau projects that America’s Hispanic population will increase to 53 million, or one in six Americans, by 2020. Most of the increase is expected to come not from immigration but from the natural increase of Hispanics already here.

Who are America’s Hispanics, and how are they likely to affect the insurance industry?

First, and most important, Hispanics work hard and are loyal to their employers. The percentage of Hispanic men in the labor force in 1996 was 80%, the highest of any measured group, and far above the figure for all U.S. men, 67%. Their attitude is “I’m asked to do this job, and I go and do it. If I need more money, I’ll get an extra job.”

Secondly, Hispanics have strong family ties. 37% of Hispanic households are comprised of two parents raising children, compared with 25% of non-Hispanic Americans. The Hispanic divorce rate is also significantly below the national average.

The third characteristic of Hispanics is that they know or want to learn English. To be sure, Spanish is common in many of their homes and workplaces but more than three-quarters of U.S.-born Hispanics speak English “very well”. It seems that most of the Hispanics who come into my insurance agency bring one of their children to interpret since none of my full-time employees speak Spanish. In fact, the only Hispanic words I know for sure are “mucho dinero”!

How big is this market’s potential?

Drawn by an abundance of low-wage jobs, an increasing number of Latinos have moved to the Southeastern states where being a minority used to mean being black. The South is where the jobs are ... and Hispanics are coming here for jobs!

Seven of the eight states with the fastest-growing Hispanic population are in the South, more than doubling since the 1990 Census. Georgia is #3 in growth %, up 300 percent. The 2000 U.S. Census shed light on the dramatic growth of the Latino population in the United States, with experts estimating Latinos' buying power at $450 billion.

Latinos own homes, autos and businesses and are in need of insurance information to help protect their assets.

Several financial institutions are already courting the Latino dollar. It seems that Hispanics shun American banks because they’re undocumented, and fear their personal information will be turned over to immigration authorities. Many Latinos also think they have to be U.S. citizens before they can access banks. There is no law requiring U.S. citizenship to open a bank account but there are laws mandating tax withholdings. A bank has to withhold 31% of interest payments made to clients without a Social security number. That money goes to the IRS.

Don’t have a Social Security number but don’t want the IRS to get almost one-third of the income from an interest-bearing account? No hay problema! The banks open accounts that don’t pay interest, and help customers obtain taxpayer ID that allows non-residents to file taxes. It also can give them a leg up when they’re seeking legal status from the INS.

To address the challenges of communicating to this population segment, Georgia Insurance Agents Alliance is sponsoring a 2-hour CE seminar on Tuesday afternoon at INSURANCE EXPO 2004.

"Insuring El Sueño Americano" (Insuring the American Dream) will provide important information for our insurance industry to better understand the dynamic Latino market.

The agent / broker section will be of particular interest to agents / brokers who are considering the tremendous marketing niche rewards of selling Mexico tourist insurance.

Bienvenidos A Mexico!!!

Asegurar El Sueño Americano