NAILBA Perspectives Winter 2020 | Page 26

NICHE MARKETS
Take your blinders off;
Put your blinker on
The amount
of immigrants
accounting for all
new entrepreneurs
in the U.S. increased
from 13% in 1996 to
29% in 2017. 2
Not having an insurance practice in traditional border or gateway states — New York,
Florida, Texas, California — needn’t exclude you from the lucrative potential of writing foreign
nationals in the U.S.
While a large proportion of opportunities originate where one would expect, like in Miami,
El Paso, San Diego, and New York City, there are those hiding locally, so don’t ignore ethnic
populations within your own metropolitan region. Granted, many are dominated by ethnic
producers serving their local communities: Lebanese selling to Lebanese in metropolitan
Detroit, Somalis selling to Somalis in Minneapolis-St. Paul, etc. But at its core, insurance is a
relationship business built on trust, and, as a result, often word of mouth. That’s why it’s not
impossible to cross ethnic barriers to tap into regional diasporas.
Key ingredient
Immigrant agents may be a key ingredient in the insurance success recipe. Entrepreneur
Magazine called immigrants the “fastest-growing group of people” keeping the American
Dream of small-business ownership alive and well, 1 and the amount of immigrants accounting
for all new entrepreneurs in the U.S. increased from 13% in 1996 to 29% in 2017. 2 Insurance
is one small (or large!) business immigrants flock to. That said, immigrants who opt for other
self-owned business opportunities or franchise options make for excellent prospects, as well.
Personal insurance needs are obvious enough. With business owners, those needs can
double or triple (key man, buy-sell). And whether you are of the ethnicity/ies you target, some
“breakthrough” strategies are the same. Partner with your local Chamber of Commerce or
Better Business Bureau to identify ownership demographics. Similarly, partner with CPAs and/
or tax attorneys (some of whom specialize ethnically, themselves) for referrals.
Christopher Guerin
In his 23rd year with Transamerica,
and with over 30 in the industry,
Christopher Guerin, Director of
International Underwriting, leads
both large case and international
underwriting. Initially focused in
the Pacific Rim, his recent efforts
concentrate on Mexico, Central,
and Latin America.
1 “Immigrant Entrepreneurs Flock to Franchising
Opportunities,” by Jim Judy, Entrepreneur.com,
May 5, 2017.
2 “Kauffman Indicators of Entrepreneurship 2017
National Report on Early-State Entrepreneurship,”
by Robert W. Fairlie, Sameeksha Desai, and
A.J. Herrmann, February, 2019.
207737 01/20 © 2020 Transamerica
26
Perspectives
Q1 2020
Partner up!
CPAs and tax attorneys often don’t understand — or don’t have the time to understand —
the sub-specialty of insurance and are eager to find agents to partner with. So, don’t be afraid
to incorporate CPA and tax attorney cold-calling into your growth strategy.
I could go on and on about ethnic markets — the concentrations of Hmong in Minnesota,
Wisconsin, and Northern California; and Indian populations scattered across most major
U.S. metropolitan areas (don’t ignore rural ones). But test for yourself: take a few minutes to
Google the prominent ethnicities in your area, and you’ll probably have a good place to start.
Remember estate tax exposure
Once you’ve identified those opportunities, remember the largest potential insurance need
any immigrant may have: U.S. estate tax exposure. Excluding the super wealthy, the average
U.S. citizen currently enjoys a near-limitless $11.4 million exemption, whereas immigrants can
only exempt $60,000.
An immigrant with even a modest net worth could owe significant estate taxes without
even realizing it until it’s too late — and there is no spousal transfer, either!
Challenge yourself on the way to your next appointment. You likely drive by hundreds of
immigrant opportunities every day. Take your blinders off. Put your blinker on. Knock on a
new door.