Hispanics and The Health Insurance Opportunity
The US auto and home insurance industry boasts high enrollment by Hispanic populations. As of the late 1990s, over 50% of Hispanics own auto insurance, while close to 40% have homeowners insurance. Yet the numbers have not quite caught up in the area of health insurance. So while they are purchasing homes and cars, Latino communities are largely underserved by the health insurance industry. This leaves an enormous opportunity for companies to tap into a burgeoning Hispanic market throughout the United States by providing relevant information and ensuring the availability of affordable, high-quality healthcare.
As recently as February 2014, the White House pushed to address this disparity in enrollment by instituting nationwide campaigns to increase coverage. Despite these efforts, in a state such as California which boasts the highest number of Hispanic residents, enrollment in the Affordable Care Act remains lower than 20%. With the Hispanic population projected to reach 80.4m by the year 2020 (constituting 20% of the total population of the US), the spending potential of the Hispanic market segment is immense. Prospective health insurance providers must recognize that their approach toward Hispanic communities is key in capturing a segment with untapped financial resources for health insurance.
YaSabe recently conducted a series of polls in order to shed light on community needs as well as the opportunity available to health insurance companies. Its findings reveal that the main obstacle within Hispanic populations continues to be cost, followed by lack of information.
Poll data indicates that a whopping 42% still do not have health insurance coverage, leaving a big opportunity open for private insurance companies wishing to capture the large uninsured Hispanic market. An additional finding is that 34% of those polled claiming they have no coverage due to a lack of information about insurance options, indicating a persistent need for insurance agencies to analyze why their current marketing techniques are not reaching this large group of potential customers.
Getting to know your Hispanic consumer is essential. Understanding what affects his or her decisions about health coverage, whether it be high premium prices, insufficient information, or cultural and linguistic barriers is key to unlocking the market potential for health insurance companies. As a cutting edge tool for assessing market trends, YaSabe can offer valuable insights to competitive health insurance firms while allowing them to build a strong and sustainable relationship with Hispanic consumers based on informed choices. It also allows providers of health insurance the opportunity to earn consumer trust by understanding and investing in Hispanic community needs at a critical time in its growth.
Poll conducted among more than 1,000 Spanish-language visitors to the YaSabe desktop and mobile sites between 03/10 and 03/31