Hitting the target: Best's Review survey shows agents and insurers are finding promising new markets in unexpected places.

As the most common insurance markets become saturated, agents and insurers are finding new clients among women, the self-employed, young families and other groups that don't come readily to mind for their sales potential, according to a recent survey conducted by Best's Review.

Survey respondents, 59.2% of whom are agents, brokers or advisers, also named lower- and middle-income families, hospitality businesses, first-time home buyers, fraternal organizations and small businesses owned by women as groups with which they have had particular success. "We have been very successful at reaching the blue collar workers," said one agent. "Our focus is the labor unions, and we have great penetration."

Ethnic groups also were mentioned often, particularly Hispanics. But some respondents thought agents and insurers need to do more to reach Hispanics. Top groups that the industry needs to try harder to serve included:

* Hispanics

* Lower-and middle-income families

* Senior citizens

* Young families

* Women

* Small businesses

"Middle America is still the market most mistreated by insurers," said an agent. "That includes all different ethnic groups and genders."

Marketing to diverse groups is a medium or high priority for most respondents, but 62.5% think insurers are providing agents with too few resources in this area. Highlights of the survey results are shown here and on page 53.

Marketing Success

What group or groups have you been able to reach, and how did you do it?

"SINGLE CAREER WOMEN, who put priority on career success," To reach them, we "put advertisements in promotional material, such as the yellow book for the relevant district."

--Insurance company

"THE SELF-EMPLOYED are always looking for ways to save money. [They need] an agent being there, instead of phoning somewhere and having to go through 20 million prompts and never talking to anyone. [We reached them] through word of mouth and direct mail.... Be sure to put a photo on the material you send out. Many times people do not know the name, but they remember the face."

--Agency, brokerage or adviser organization

"MOSTLY YOUNG FAMILIES because they usually are in the middle of change and realize the need for proper insurance protection. [We reached them] mostly through reviewing their current coverages and talking about what needs they currently have."

--Insurance company

"Our office is called El Centro (The Center). The founder and president realized years back how underserved THE HISPANIC MARKET was. He had the idea of offering several professional services in one office, with the main target as Hispanics. The entire office is fluent in Spanish, and help with not just insurance, but with mortgage loans and tax preparation. We advertise on the Spanish radio station, we send out newsletters for the Spanish reader, and we go out to the community at different events to let the people know what we do and how we can help them."

--Insurance company

"SINGLE MOTHERS/DADS and two-income families with children at home. We are addressing some of the unique needs of these two groups by developing family leave insurance products. These two groups often find juggling work or job demands with family needs [very difficult]. ... We are working to reach this market through worksite insurance groups."

--Other insurance-related company or organization

What tools do you think are most
effective in reaching diverse groups?

Multilingual brochures                        35.8%
Multilingual staff                            48.3%
Offering translation services                 13.3%
Advertising in targeted publications          53.3%
Advertising in targeted electronic media      16.7%
Direct mail                                   37.5%
Participating in community events             61.7%
Sponsoring educational workshop               42.5%
Other                                         21.7%

Note: Table made from bar graph.

To reach specific markets,
insurers are providing agents

Too many resources                       9.2%
About the right number of resources     32.5%
Too few resources                       62.5%

Note: Table made from bar graph.

Our company or agency considers marketing to diverse groups

High Priority        33.3%
Medium Priority      43.3%
Low Priority         25%

Note: Table made from bar graph.

Too quality of those resources is

Superior             10.8%
Average              64.2%
Below Average        28.3%

Note: Table made from bar graph.

Where Respondents Work

Agency, brokerage or adviser organization          59.2%
Insurance company                                  29.2%
Other insurance-related company or organization    16.7%

Note: Table made from bar graph.

Help Needed

What could insurers do better to market to diverse groups?

"VARIOUS PRODUCTS should be packaged to address the needs of target groups."--Other insurance-related company or organization

"Not only should MARKETING AND ENROLLING TOOLS be in Spanish, but the actual policies should also be in Spanish."--Insurance company