ING powers into burgeoning multicultural market in the US
Seeking to capitalise on the growing diversity of the US market,
ING has expanded
its enterprise-wide efforts aimed at serving multicultural
customers.
The global financial services provider senses
a unique opportunity in the US, X Rick Niu, chief marketing officer
of ING US Retirement Services, told LII. Niu also directs
multicultural sales across the enterprise.
He explained the significant multicultural
market serves as the mirror image of the Baby Boomer opportunity,
with major positive implications for ING’s three major insurance
business lines in United States: life insurance, retirement
services and rollover annuity products.
“The US domestic multicultural market is now
reaching the mainstream,” Niu said. “Of 300 million or so in
population, over 100 million Americans hail from Hispanic, Asian or
African-American origins, representing one-in-three consumers. And
that population is growing at five times the rate of the total US
population. It is a tremendous opportunity.”
Led by Niu, ING has created and expanded the
company’s enterprise-wide multicultural sales efforts, particularly
in its retirement services and life insurance business. The
multicultural sales team provides marketing and sales assistance,
in-language and in-culture financial education programmes,
training, and other customised support to distribution partners,
plan sponsors and ING’s regional sales organisations.
Team members include Fabian Gonzalez, Hispanic
market development; Peter Chang, Asian market development; Andres
Vargas Escobar, sales operations; Juan Pablo Troncoso Philippi and
Nydia Monarrez, sales support; and Erika Contreras Escobar,
business coordinator. They are based in California, Florida,
Connecticut and Minnesota.
Home-grown expertise
Each Hispanic team member hails from
a country within ING’s Latin American operations, giving them
direct and first-generational knowledge of those audiences in the
US. Combined with others, the team now represents many countries,
including Argentina, Chile, China, Colombia, Mexico and South
Korea.
“We have taken a regional approach, so in
terms of staff and outreach we do different things in different
markets, recognising the subtle but very important differences
between Hispanic immigrants,” Niu said.
“In south Florida, for example, there is a
large Cuban-American population, whereas in south Texas there is a
big Mexican-American population.
“The integration with our businesses has to be
complete. We have to approach the bilingual agent or adviser and
work with them from a training, branding, sponsorship and service
perspective.”
Predominantly focused on distributing products
through independent or closely aligned agent channels, ING has
several engrained strengths, not least of which its status as one
of the world’s most powerful financial services brands.
Thanks to its global growth, ING also has the
advantage of creating a truly diverse workforce, not just in terms
of sales or service personnel, but from upper management and
enterprise-wide. That gives ING a real advantage in multicultural
markets, as it can draw from a deep well from within the company
and align strategy and execution with overarching business
objectives.
“When we talk about multicultural efforts, we
start from a position of strength,” Niu said. “This is a structural
commitment, not a short-term initiative, and it is supported by the
company’s commitment to a truly diverse workforce.
“At ING, we have a unique opportunity to
leverage diverse talents from within our large organisation. ING’s
global presence, well-respected brand, diverse workforce, and our
understanding of multicultural audiences position us well to
continue to tap this large market opportunity.”
For the past few years, ING’s multicultural
sales have been a growth driver for its individual life and
employee benefits business. ING recently began expanding existing
efforts in its retirement services business, ranked as a top-three
provider in the US.
Supporting market needs
These efforts support a real need in
the market. A number of recent studies have found African-Americans
and Hispanics participate in and contribute to retirement plans at
lower rates than Caucasians and Asians. They also pointed to an
improvement of financial literacy and education efforts as a way to
better address this disparity.
Similar studies find disparity in Hispanic
life insurance ownership when compared with the general population.
According to a 2008 ING study, Hispanics are significantly less
likely than the general population to have life insurance (39
percent versus 71 percent), while they are more likely than the
general population to say they would need various protection should
something happen to them. In fact, 89 percent of Hispanics said
that someone in their situation should have life insurance.
“When you are doing this right, and your
sales, marketing and service are truly culturally aligned, you find
multicultural customers are incredibly loyal and are tremendous
savers,” Niu said.
“They are very committed, and approach
financial planning as a family, so trust is so important. We are
working to provide the sort of in-culture support which makes that
relationship happen within the distribution network.”
The key to expanding multicultural business,
Niu said, is education, best facilitated at the producer level, in
face-to-face settings filled with informal conversation.
“Many of the first-generation immigrants are
undergoing a steep learning curve, and the agent, who in many cases
shares the same immigrant experience themselves, are in a position
to really make an impression on them,” he said.
“In the US, there are over 23 million Hispanic
first-generation immigrants right now. They come from countries
where life insurance or voluntary pension is not common, and to
explain to them why and how they can easily afford basic life
insurance or save for retirement here takes a lot of education.
“After they digest and understand, though,
they not only buy coverage or start 401(k), but also spread the
word to their relatives, friends and community.”
Charles Davis