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 ID: 605773
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Slide1
New Directions in the Asian-American Insurance Market
Team Rubicon
University of Connecticut
Goldenson
Center Undergraduate Case StudySlide2
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 marketSlide3
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 Slide4
Company data provided by TravelersSlide5
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 contactSlide6
Readjusting Wholesale
Company data provided by TravelersSlide7
Readjusting Wholesale
We aim to improve profitability of monoline clients and improve flexibility of premium adjustment for multi-line clientsSlide8
Considerations
Is adjusting our current business is enough to meet our overall goal and target combined ratios?
Company data provided by TravelersSlide9
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 businessSlide10Slide11
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 stabilitySlide12Slide13
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 CompensationSlide14
Source: Bureau of Labor StatisticsSlide15
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
.Slide16
AdvertisingSlide17
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 customerSlide18
Source: SNL DatabaseSlide19
Implementation
Year 1
Set the Framework
Year 2
Commence Sales in California
Year 3
Reception
Year 4
Financial Adjustment
Year 5
ExpansionSlide20
Here to help you feel at home.Slide21
Contact Information
Andrew Damon-Smith
Andrew.Damon-Smith@uconn.edu
Nicholas Frei
Nicholas.Frei@uconn.edu
Yanhan Wang
Yanhan.Wang@uconn.edu