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 ●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 Set the Framework Year 2 Commence Sales in California Year 3 Reception Year 4 Financial Adjustment Year 5 Expansion

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Contact Information Andrew Damon-Smith Nicholas Frei Yanhan Wang