The insurance industry can reach a greater market share by expanding insurance offerings and targeting underserved communities. There are a variety of opportunities for reaching new customer segments in the industry by focusing on diversification of offerings, adapting to evolving situations, and anticipating consumer needs. By being proactive in the market and ensuring that underserved communities have personalized options, you can stay ahead of the game and maintain success.
Providing affordable insurance solutions to underserved communities is good for business, but there should also be a corporate social responsibility aspect to these endeavors.
Bridging the Insurance Gap in Underserved Communities
When thinking about how to grow your insurance business, one thing to focus on is inclusive insurance. While you may think you already have inclusive insurance products, there are socioeconomic, racial, and financial diversities that exist across markets. Overcoming barriers that prevent underserved markets from gaining access to affordable insurance products will serve to expand your place in the industry.
Although insurance is widely offered in the United States, it is not completely inclusive. Two main problems preventing inclusion in insurance are affordability and accessibility. Addressing these issues can close the gap in underserved communities. Through extensive research, insurers can develop products and methods that target diverse customers and their unique needs.
The Impact of Inclusive Insurance on Community Development
By partnering with non-insurance businesses in the community, you can develop greater outreach to diverse populations. You can begin to make inroads in underserved communities and access additional customers. This approach works cyclically, meaning as you connect with more community businesses and members, you will develop a reputation that leads underserved populations to reach out to you as well.
Expanding your market reach to additional communities can be beneficial to all sides.
Innovative Strategies for Expanding Reach
How can you expand in the insurance market? Innovative strategies are necessary to produce results. These may include any of the following:
- Reduction in expected costs: By providing a subsidized rate to individuals, you can gain new consumers who will learn about your products and services. Even after the subsidies expire, the customers are better informed about enrollment decisions in the future.
- Ease of use: Complex enrollment is one barrier that may prevent customers from moving forward in securing an insurance plan. Make sure you offer an easy method to access your product. Enrollment should be simple to complete and easily accessible.
- Show customers greater than expected benefits: Customers may see the value of the products you offer if you break it down and simplify the cost-benefit comparison. This allows them to understand where their dollar is going and what they are gaining from it. It also offers a simple way to compare various plans and products.
- Developing innovative products: Keeping on the cutting edge of new products is a key component to expanding into underserved markets. Innovative products require technology, investments, and thinking outside the box.
The underwriting team must be heavily involved in reaching underserved populations and providing diverse products. For example, since the gig economy is flourishing, various insurance policies must extend to these individuals at an affordable rate. More and more people are securing insurance that isn’t employer-based.
Although innovation and diversification come with a price, underwriting must maintain discipline and balance. You want to ensure that you aren’t venturing into overly unfamiliar or complex products because this can come with additional risks and decreased profitability.
Leveraging Technology to Connect With New Customers
Technology is a cornerstone of all industries, and the insurance industry can leverage it to connect with new customers. Using data analytics powered by artificial intelligence (AI) and the Internet of Things (IoT) can provide significant information about your customer base. It can also be used to provide a window into how to reach additional customers. By studying consumer behavior using technology, you can promote products to certain demographics and target those consumers who haven’t been reached.
Technology should work in combination with your current offerings, providing greater coverage and personalized products to targeted consumers.
Partnering With Local Organizations for Greater Impact
Local organizations can offer a unique way to reach underserved communities. Partnerships with local businesses open up doors that might not otherwise be accessed. Inclusion in insurance must involve understanding those in underserved communities through genuine connections. Consequently, insurers can create positive policies that are favorable to the communities they strive to reach.
Overcoming Common Barriers to Entry
Several barriers exist that must be overcome. These include the following:
- Not easily accessible
- Lack of awareness of products
- Not enough information about the cost-benefit comparison
- Financial limitations
- Complex “red tape”
- Geographical and language barriers
Insurers can address all these barriers using a strategic plan.
Tailoring Products to Meet Specific Needs
Tailoring products to meet specific needs involves targeting professions or lifestyle choices for more personalized products. Some professions have highly specific needs that aren’t addressed by common policies and plans. The gig economy is one of the industries that requires tailored offerings that meet specific needs.
The Regulatory Environment and Its Effect on Market Expansion
Regulatory compliance is a vital issue as the insurance market expands. Many policies focus on very specific standards and more high-value products. However, insurers need to strive for harmony between innovation and consumer protection.
Some products and associated regulations are targeted to high-income earners. However, the needs of low-income earners may benefit from more diverse products and flexible standards. Underwriters can achieve a measure of equality when they achieve inclusion in the business. Insurers can work with regulators to ensure that focus is placed on disadvantaged populations.
Measuring the Impact and Adjusting Tactics
Without measuring key metrics, insurers won’t know if they are gaining ground in reaching these disadvantaged markets. It’s vital that companies track their success and make adjustments if necessary. Some of the ways you can gauge the success of your efforts are as follows:
- You see an increase in enrollment: Be sure you are tracking the number of new policies in underserved communities. Compare the amount of growth you see before and after diversification efforts.
- Determine customer satisfaction: Conduct surveys from customers in your target demographic. Review and analyze how satisfied these individuals are, while also checking retention rates.
- Check claims utilization rates: If members of the targeted communities are filing claims and receiving payouts, you’ll know that the coverage is adequate. It is meeting the needs of the customers you are trying to reach.
- Decrease in coverage gaps: If gaps between the insured and uninsured or underinsured individuals is closing over time within the community, then you know you’re on the right track.
- Assess the financial performance: Ensure that your business is still seeing revenue growth and profitability from whatever new products you’re promoting.
Key Performance Indicators for Success in Underserved Markets
Some performance indicators that signal success in disadvantaged markets include reaching a higher percentage of individuals in the market than you had been before. It’s a good sign when you see new enrollees of your product.
Additionally, you can assess the retention rate. It’s one thing to have new consumers sign up, but the goal is to create customers who re-enroll and become loyal advocates for your brand.
Learn More About How Confie Is Dedicated to Inclusive Insurance
Join the discussion about expanding insurance market products to underserved communities. Confie is staying on top of innovative ways to target and reach disadvantaged populations. Connect with us at Confie to receive thought leadership and more.
Join one of the largest and most respected personal lines distributors in the United States. Confie is here to provide leadership and guidance to our insurance partners. You can contact us online or by calling (714) 252‑2500 for more information today.
