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Hispanic Consumers and Property and Casualty Insurance - US - October 2014

Published By :

Mintel

Published Date : Oct 2014

Category :

Insurance

No. of Pages : 160 Pages

Hispanic consumers value personal relationships making the role that insurance agents play in building a relationship and offering support very important; as they reach Hispanics with a consulting attitude rather than a sales approach, they may be able to gain their trust and anticipate the questions that Hispanics may have but are hesitant to ask.
Table of Content

Scope and Themes

What you need to know
Definition
Data sources
Consumer survey data
Expenditure data
Abbreviations and terms
Abbreviations
Terms
Acculturation

Executive Summary

Hispanic household’s spending on property and casualty insurance stagnant
Figure 1: Average expenditures by Hispanic households for property and casualty insurance, at current prices, three-year rolling averages, 2008-13
Homeowners/renters insurance increases with acculturation; car insurance doesn’t
Figure 2: Hispanics’ ownership of property and casualty insurance, by level of acculturation, August 2014
Likelihood of filing claims increases with income
Figure 3: Claim filing incidence among Hispanics, by household income, August 2014
Price is the main reason behind most Hispanics switching auto insurance
Figure 4: Reasons that Hispanics have for switching auto insurance, by level of acculturation, August 2014
Spanish-language key to reach unacculturated Hispanics
Figure 5: Hispanics’ attitudes toward insurance agents – Any agree, by level of acculturation, August 2014
Younger Hispanics more likely to see insurance companies as commodities
Figure 6: Hispanics’ attitudes toward insurance’s value – Any agree, by age, August 2014
Importance of shopping around to get different quotes at renewal decreases with acculturation
Figure 7: Hispanics’ attitudes toward purchasing insurance, by level of acculturation, August 2014
Preference for purchasing insurance online still limited
Figure 8: Hispanics’ attitudes toward purchasing insurance, by level of acculturation, August 2014
Less than half of Hispanics getting a good deal on auto insurance
Figure 9: Hispanics’ attitudes toward switching auto insurance, by age, August 2014
What we think

Issues and Insights

Gaining trust with an intangible product
The issues
The implications
Differentiating an insurance company in a competitive, price-oriented market
The issues
The implications
Reaching Hispanics online for insurance
The issues
The implications

Trend Application

Trend: Return to the Experts
Trend: Moral Brands
Trend: Prepare for the Worst

Hispanic Expenditures on Property and Casualty Insurance

Key points
Spending on property and casualty insurance stagnant
Figure 10: Average expenditures by Hispanic households for property and casualty insurance, at current prices, three-year rolling averages, 2008-13
Figure 11: Average expenditures by Hispanic households for auto insurance, at current prices, three-year rolling averages, 2008-13
Figure 12: Average expenditures by Hispanic households for homeowners/renters insurance, at current prices, three-year rolling averages, 2008-13
Hispanics underindex on homeowners/renters insurance spending
Figure 13: Average expenditures for homeowners/renters insurance, by Hispanic and non-Hispanic households, indexed to all households, 2013

Hispanics and Property and Casualty Insurance

Key points
Likelihood of owning auto or homes that need insurance increases with age
Figure 14: Hispanics’ ownership of property and casualty insurance, by age, August 2014
Household income correlates positively with auto or homeowners/renters insurance ownership
Figure 15: Hispanics’ ownership of property and casualty insurance, by household income, August 2014
Homeowners/renters insurance increases with acculturation; car insurance doesn’t
Figure 16: Hispanics’ ownership of property and casualty insurance, by level of acculturation, August 2014
Hispanic auto insurance market is very fragmented
Figure 17: Companies with which Hispanics hold auto insurance policy, by language spoken in home, January 2013-March 2014
State Farm number one homeowners insurance company among Hispanics
Figure 18: Companies with which Hispanics hold homeowners/renters insurance policy, by language spoken in home, January 2013-March 2014
Likelihood of filing claims increases with income
Figure 19: Claim filing incidence among Hispanics, by household income, August 2014
Unacculturated Hispanics less likely to file claims
Figure 20: Claim filing incidence among Hispanics, by acculturation model, August 2014

Marketing Strategies

State Farm
Figure 21: State Farm’s Spanish-language TV commercial about Discount Double Check, March 2014
Figure 22: Example of direct mail from State Farm, July 2014
Allstate
Figure 23: Allstate’s Spanish-language TV commercial, Viviendo en buenas manos: Camino de la vida (Living in good hands: The road of life) , February 2014
American Family Insurance (AFI)

Social Media

Key points
Market overview
Key social media metrics
Figure 24: Key performance indicators, selected property and casualty insurance brands, English/Spanish language filtered discussions, Sept 22, 2013-Sept 21, 2014
Brand usage and awareness
Figure 25: Brand usage and awareness of property and casualty insurance brands, August 2014
Interaction with brands
Figure 26: Interaction with property and casualty insurance brands, August 2014
Leading online campaigns
Sports sponsorships
Celebrating the Hispanic heritage
What we think
Online conversations
Figure 27: Online mentions, selected property and casualty insurance brands, English/Spanish language filtered discussions, Sept 22, 2013-Sept 21, 2014
What are people talking about online?
Figure 28: Mentions by topic of conversation, selected property and casualty insurance brands, English/Spanish language filtered discussions, Sept 22, 2013-Sept 21, 2014

Reasons for Switching Auto Insurance Providers

Key points
Price is the main reason why Hispanics switch auto insurance providers
Figure 29: Reasons that Hispanics have for switching auto insurance, by age, August 2014
Price is important regardless of level of acculturation
Figure 30: Reasons that Hispanics have for switching auto insurance, by level of acculturation, August 2014
Hispanic men more engaged in the decision making for auto insurance
Figure 31: Level of involvement in decision making for auto insurance, by gender, August 2014
Sole decision making increases with acculturation
Figure 32: Level of involvement in decision making for auto insurance, by level of acculturation, August 2014

Reasons for Switching Homeowners/Renters Insurance

Key points
Homeowners/renters insurance market more stable than auto insurance market
Figure 33: Reasons that Hispanics have for switching homeowners/renters insurance, by gender, August 2014
Spanish-dominant Hispanics more likely to be first-time homeowners/insurance owners
Figure 34: Reasons that Hispanics have for switching homeowners/renters insurance, by language spoken in home, August 2014
Responsibility in selecting new policies lies more with Hispanic men
Figure 35: Level of involvement in decision making for homeowners/renters insurance, by gender, August 2014

Attitudes Toward Insurance Agents, Value, and Trust

Key points
Attitudes toward insurance agents
18-34-year-old Hispanics more likely to see agents as someone simply trying to sell them something
Figure 36: Hispanics’ attitudes toward insurance agents – Any agree, by age, August 2014
Spanish-language key to reach unacculturated Hispanics
Figure 37: Hispanics’ attitudes toward insurance agents – Any agree, by level of acculturation, August 2014
Attitudes toward the value of insurance
Younger Hispanics more likely to see insurance companies as commodities
Figure 38: Hispanics’ attitudes toward insurance’s value – Any agree, by age, August 2014
Unacculturated Hispanics see the benefit, but buy because they are required by law
Figure 39: Hispanics’ attitudes toward insurance’s value – Any agree, by level of acculturation, August 2014
Attitudes toward insurance and trust
For insurance, trust is the foundation
Figure 40: Hispanics’ attitudes toward trust in insurance – Any agree, by level of acculturation, August 2014

Attitudes Toward Shopping for Auto and Homeowners/Renters Insurance

Key points
Hispanics consider it important to shop around whenever a policy comes up for renewal
Figure 41: Hispanics’ attitudes toward purchasing insurance, by gender, August 2014
Importance of shopping around to get different quotes at renewal decreases with acculturation
Figure 42: Hispanics’ attitudes toward purchasing insurance, by level of acculturation, August 2014
Half of Hispanics are getting a good deal in auto insurance
Figure 43: Hispanics’ attitudes toward switching auto insurance, by age, August 2014
Recommendations have more weight among unacculturated and bicultural Hispanics
Figure 44: Hispanics’ attitudes toward switching auto insurance, by level of acculturation, August 2014
For homeowners/renters insurance, recommendations are key
Figure 45: Hispanics’ attitudes toward switching homeowners/renters insurance, by level of acculturation, August 2014

Lower Deductible Versus Lower Monthly Premium

Key points
Hispanics with higher household incomes favor lower premiums
Figure 46: Hispanics’ preference of lower deductible versus lower monthly premium, by household income, August 2014
Unacculturated Hispanics more likely to consider both lower deductible and premium important
Figure 47: Hispanics’ preference of lower deductible versus lower monthly premium, by level of acculturation, August 2014

Likelihood to Recommend

Key points
Overall, Hispanics pleased with their auto insurance policies
Figure 48: Hispanics’ likelihood to recommend insurance company – Auto insurance, by age, August 2014
Hispanics have no problem recommending their current homeowners/renters insurance
Figure 49: Hispanics’ likelihood to recommend insurance company – Homeowners/renters insurance, by language spoken in home, August 2014

Consumer Segmentation: Cluster Analysis

Figure 50: Hispanic property and casualty insurance clusters, August 2014
Doubting Faithful
Demographics
Characteristics
Opportunities
Distrustful Unengaged
Demographics
Characteristics
Opportunities
Distrustful Anglophones
Demographics
Characteristics
Opportunities
Trusting Faithful
Demographics
Characteristics
Opportunities
Cluster characteristics tables
Figure 51: Hispanic property and casualty insurance clusters, August 2014
Figure 52: Hispanics’ ownership of property and casualty insurance, by property and casualty insurance clusters, August 2014
Figure 53: Claim filing incidence among Hispanics, by property and casualty insurance clusters, August 2014
Figure 54: Reasons that Hispanics have for switching auto insurance, by property and casualty insurance clusters, August 2014
Figure 55: Level of involvement in decision making for auto insurance, by property and casualty insurance clusters, August 2014
Figure 56: Attitudes toward insurance agents – Any agree, by property and casualty insurance clusters, August 2014
Figure 57: Attitudes toward insurance’s value – Any agree, by property and casualty insurance clusters, August 2014
Figure 58: Attitudes toward trust in insurance – Any agree, by property and casualty insurance clusters, August 2014
Figure 59: Hispanics’ attitudes toward purchasing insurance, by property and casualty insurance clusters, August 2014
Figure 60: Hispanics’ attitudes toward switching auto insurance, by property and casualty insurance clusters, August 2014
Figure 61: Hispanics’ attitudes toward switching homeowners/renters insurance, by property and casualty insurance clusters, August 2014
Figure 62: Hispanics’ preference of lower deductible versus lower monthly premium, by property and casualty insurance clusters, August 2014
Figure 63: Hispanics’ likelihood to recommend insurance company – Auto insurance, by property and casualty insurance clusters, August 2014
Cluster demographic tables
Figure 64: Hispanic property and casualty insurance clusters, by demographics, August 2014
Cluster methodology
Agent
Value
Trust

Buying Power of US Hispanics

Key points
Hispanics’ purchasing power growth between 1990 and 2018 is projected to be 666%
Figure 65: Purchasing power, by race/Hispanic origin, 1990-2018
Figure 66: Purchasing power, by race/Hispanic origin, 1990-2018
Figure 67: Top 10 states ranked by share of Hispanic buying power, rank by Hispanic share of buying power by state, 2013
Figure 68: Top 10 states ranked by dollar amount of Hispanic buying power, 2013
US household income distribution
Figure 69: Median household income, by race and Hispanic origin of householder, 2012

Demographic Profile of US Hispanics

Key points
Population trends
Figure 70: Population by race and Hispanic origin, 2009-19
Figure 71: Population, by race and Hispanic origin, 1970-2020
Figure 72: Asian, Black, and Hispanic populations, 1970-2020
Hispanic share of births
Figure 73: Distribution of births, by race and Hispanic origin of mother, 2002-12
The Hispanic and total US population by age
Figure 74: Hispanic share of the population, by age, 2009-19
The Hispanic and total US population by gender
Figure 75: Population, by gender and Hispanic origin, 2009-19
Figure 76: Age distribution of women, by Hispanic origin, 2014
Figure 77: Age distribution of men, by Hispanic origin, 2014
Characteristics
Marital status
Figure 78: Marital status of people aged 18 or older, by race and Hispanic origin, 2013
Figure 79: Marital status of Hispanics, by age, 2013
Figure 80: Gender ratio, by age and Hispanic origin, 2014
Household size
Figure 81: Average household size and average number of adults and children in households, by race and Hispanic origin, 2013
Children in the household
Figure 82: Households, by presence and ages of own children, 2013
Generations
Figure 83: Generations, by Hispanic origin, 2014
Figure 84: Distribution of generations by race and Hispanic origin, 2014
Hispanics by country of origin/heritage
Figure 85: Hispanic population, by country of origin/heritage
Mexicans (63% of US Hispanics)
Figure 86: Number of tortilla-related products launched per year in the US, 1996-2013
Puerto Ricans (9% of US Hispanics)
Cubans (4% of US Hispanics)
Dominicans (3% of US Hispanics)
Central Americans (8% of US Hispanics)
South Americans (5% of US Hispanics)
Figure 87: US Hispanic population, by country of origin/heritage, 2000-10
Figure 88: Largest* Hispanic groups, by region, by country of origin/ancestry, 2010
Hispanics by geographic concentration
Figure 89: Hispanic population, by region of residence, 2000-10
Figure 90: Hispanic or Latino population as a percentage of total population by county, 2010
States with the most Hispanic population growth
Figure 91: States ranked by change in Hispanic population, 2000-10
Figure 92: Percent change in Hispanic or Latino population by county, 2000-10
Key Hispanic metropolitan areas
Figure 93: Metropolitan areas with the largest number of Hispanic residents, by country of origin/ancestry, 2010
Hispanics online
Figure 94: Internet use among Hispanics aged 18+, 2013

Acculturation

What is acculturation?
Figure 95: Acculturation diagram
Figure 96: Variables that affect acculturation
Why is level of acculturation important?
Levels of acculturation
Figure 97: Characteristics of primary acculturation levels
What is retroacculturation?

Appendix – Other Useful Consumer Tables

Ownership of property and casualty insurance
Figure 98: Hispanics’ ownership of property and casualty insurance, by gender, August 2014
Figure 99: Hispanics’ ownership of property and casualty insurance, by language spoken in home, August 2014
Figure 100: Companies with which Hispanics hold auto insurance policy, by gender, January 2013-March 2014
Figure 101: Companies with which Hispanics hold homeowners/renters insurance policy, by gender, January 2013-March 2014
Figure 102: Claim filing incidence among Hispanics, by gender, August 2014
Figure 103: Claim filing incidence among Hispanics, by age, August 2014
Figure 104: Claim filing incidence among Hispanics, by language spoken in home, August 2014
Reasons for switching auto insurance
Figure 105: Reasons that Hispanics have for switching auto insurance, by gender, August 2014
Figure 106: Reasons that Hispanics have for switching auto insurance, by household income, August 2014
Figure 107: Reasons that Hispanics have for switching auto insurance, by language spoken in home, August 2014
Figure 108: Level of involvement in decision making for auto insurance, by age, August 2014
Figure 109: Level of involvement in decision making for auto insurance, by household income, August 2014
Figure 110: Level of involvement in decision making for auto insurance, by language spoken in home, August 2014
Reasons for switching homeowners/renters insurance
Figure 111: Reasons that Hispanics have for switching homeowners/renters insurance, by level of acculturation, August 2014
Figure 112: Level of involvement in decision making for homeowners/renters insurance, by language spoken in home, August 2014
Figure 113: Level of involvement in decision making for homeowners/renters insurance, by level of acculturation, August 2014
Attitudes toward insurance agents, value, and trust
Agent
Figure 114: Hispanics’ attitudes toward insurance agents– Any agree, by gender, August 2014
Figure 115: Hispanics’ attitudes toward insurance agents – Any agree, by household income, August 2014
Figure 116: Hispanics’ attitudes toward insurance agents – Any agree, by language spoken in home, August 2014
Value
Figure 117: Hispanics’ attitudes toward insurance’s value – Any agree, by gender, August 2014
Figure 118: Hispanics’ attitudes toward insurance’s value – Any agree, by household income, August 2014
Figure 119: Hispanics’ attitudes toward insurance’s value – Any agree, by language spoken in home, August 2014
Trust
Figure 120: Hispanics’ attitudes toward trust in insurance – Any agree, by gender, August 2014
Figure 121: Hispanics’ attitudes toward trust in insurance – Any agree, by age, August 2014
Figure 122: Hispanics’ attitudes toward trust in insurance – Any agree, by household income, August 2014
Figure 123: Hispanics’ attitudes toward trust in insurance – Any agree, by language spoken in home, August 2014
Attitudes toward shopping for insurance
Figure 124: Hispanics’ attitudes toward purchasing insurance, by age, August 2014
Figure 125: Hispanics’ attitudes toward purchasing insurance, by household income, August 2014
Attitudes toward switching insurance
Figure 126: Hispanics’ attitudes toward switching auto insurance, by gender, August 2014
Figure 127: Hispanics’ attitudes toward switching auto insurance, by household income, August 2014
Figure 128: Hispanics’ attitudes toward switching homeowners/renters insurance, by gender, August 2014
Figure 129: Hispanics’ attitudes toward switching homeowners/renters insurance, by language spoken in home, August 2014
Lower deductible versus lower monthly premium
Figure 130: Hispanics’ preference of lower deductible versus lower monthly premium, by gender, August 2014
Figure 131: Hispanic’s preference of lower deductible versus lower monthly premium, by age, August 2014
Figure 132: Hispanic’s preference of lower deductible versus lower monthly premium, by language spoken in home, August 2014
Likelihood to recommend
Figure 133: Hispanics’ likelihood to recommend insurance company – Auto insurance, by gender, August 2014
Figure 134: Hispanics’ likelihood to recommend insurance company – Auto insurance, by household income, August 2014
Figure 135: Hispanics’ likelihood to recommend insurance company – Auto insurance, by language spoken in home, August 2014
Figure 136: Hispanics’ likelihood to recommend insurance company – Auto insurance, by level of acculturation, August 2014
Figure 137: Hispanics’ likelihood to recommend insurance company – Homeowners/renters insurance, by gender, August 2014
Figure 138: Hispanics’ likelihood to recommend insurance company – Homeowners/renters insurance, by level of acculturation, August 2014

Appendix: Social Media Tables

Key brand metrics
Figure 139: Key social media indicators of selected property and casualty insurance brands, September 2014
Brand usage or awareness
Figure 140: Brand usage or awareness, August 2014
Figure 141: State Farm usage or awareness, by demographics, August 2014
Figure 142: GEICO usage or awareness, by demographics, August 2014
Figure 143: AllState usage or awareness, by demographics, August 2014
Figure 144: Progressive usage or awareness, by demographics, August 2014
Figure 145: Farmers usage or awareness, by demographics, August 2014
Figure 146: Liberty Mutual usage or awareness, by demographics, August 2014

Appendix: Trade Associations

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