The benefits and challenges of multi-cultural opportunities for your agency

by Curtis M. Pearsall, CPCU, AIAF, CPIA
Special Consultant to the Utica National Agents E&O Program

In reviewing the latest census data, it was interesting to note that while the overall population of the United States grew by 9.1%, the Hispanic population grew by 37.1% and now constitutes nearly 16% of the total. That translates to more than 48 million people and is one of the fastest growing population segments over the last 10 years. Hispanics are also one of the youngest races in our country, with a median age of 27.4 years. Although it is difficult to get exact numbers, there are many other cultures now looking to call America home: Bosnians, Russians and Vietnamese, to name a few.

There is no doubt the Hispanic population and multitude of others present tremendous opportunities for insurance agents to target these individuals’ personal and commercial insurance needs. With those opportunities, however, can come challenges in addressing potential language barrier issues.

These customers’ knowledge of insurance may vary, depending on the culture with which you are dealing. This opens up the potential for misunderstandings between the agency and the customers. The goal is finding the means to effectively communicate with customers to understand their insurance exposure, determine what coverage they are requesting, and ensure their understanding of the product and the process. As with any discussion with clients, quality documentation is extremely important. Questions often raised by agents include:

Should the proposal/marketing material be in Spanish if the customer is fluent in Spanish? It is best that all written material be in English. Otherwise, there is the potential for a misunderstanding because various languages having multiple dialects. Assuming the carrier is relying on the agent to properly communicate the risk in English, the agent needs to be secure and confident about the truthfulness and accuracy of the information put on the application.

How do we address the language barrier with the customer? There are several approaches. Some agencies have employees fluent in a specific language. This is a great approach and shows you are looking to serve these customers in their native language. If your community has a significant population of a certain culture, consider reaching out to this community to identify a potential employee fluent in the language.
Other approaches may involve identifying a current employee and requesting, with an incentive, that they learn a new language. In other cases, the customer may bring a friend or relative to help ensure a solid understanding of the issues and answers, essentially to serve as an interpreter. It is best if the friend or relative is an adult as this should help with communication. It is also possible the carrier may provide a translator. If translators are not available in this capacity, check with your phone company as many offer a language service for a fee.
Many English-speaking customers do not have a solid understanding due to unique terminology in our industry. This will present a similar challenge for other cultures, so take time to explain the process, the various questions on an application and the coverages.  

Giving Added Value
As with any customer, ascertaining the exposures is important. Through the interpreter, ask the necessary questions and document the responses. Once you have determined what coverage is being requested, begin completing the application.

Have interpreter help secure answers to the application questions. In virtually every state, the applicant is responsible for the information contained in the application. It is highly recommended the agency staff completes the application – do not let the interpreter handle this function. Then, have the customer review the answers with the aid of the interpreter to ensure you have correctly entered the information.
Present the information in understandable terms as best you can. This will greatly assist in ensuring there are no misunderstandings. Look for signs the customer or interpreter is struggling with the any part of the process or the product.

Once again, the goal is to present the carrier with a complete, accurate picture of the exposure. If a loss occurs and the carrier learns the exposure is not what they thought, the claim may be denied – or, if it is paid, the carrier could pursue recourse against the agency.
Several years ago, an Errors & Omissions claim developed when the application, completed by an interpreter, contained misleading information. Although the client had signed the application, he later claimed the information on the application was not the information he gave the interpreter. Such a scenario certainly creates a challenge for an agency and gives added value to having an employee fluent in another language.

Much More Rewarding
There is no doubt issues such as cancellations, inspections, losses, etc., will come up during the year, so have quick access to an interpreter to resolve these matters. If the interpreter is the customer’s family member or friend, have that person’s contact information in the client’s file. The interpreter should be readily available to assist whether the matter is handled face to face or over the phone. Be sure the file reflects their role in the specific insurance matter.
 
Dealing with the various cultures in our respective communities presents some great opportunities. If this is an area you are looking to focus on for business growth, map out a strategy to ensure the issues and challenges you face are researched and resolved. The extra time you spend now will ensure your efforts are that much more rewarding.