Adding agents of color can help close the life insurance gap, panel agrees

WASHINGTON, D.C. – As the U.S. population grows ever more multicultural, New York Life is growing along with it.

The venerable insurer boasts more than 20% Asian, 10% Black and 12% Hispanic among its agent force. New York Life's agent demographics come much closer to matching the country's cultural breakdown than the insurance industry as a whole.

It is giving New York Life an advantage in meeting the life insurance protection gap that spans all demographics, but is especially pronounced among minority populations, said Liliana Canedo, corporate vice president, Latino market, New York Life.

"Literally for 30 years now, we have had an intentional growth strategy for our target market to increase the diversity of our field force," Canedo said. "We want to be able to identify diverse talent in the field force for leadership and Home Office positions as well. And we are looking to keep expanding our support for under-represented communities."

Canedo was part of the panel Monday titled, "Seize the Opportunity: Closing the Life Insurance Protection Gap" at the LIMRA 2023 Annual Conference.

Industrywide, insurance agents identify as more than 70% white. At New York Life, about 54% of agents fall into that demographic.

Diversity program delivers

Mike James took his first step toward the insurance industry as a young man participating in the MLK Summer Scholars program in Boston. He was one of "a couple dozen" students then. Today, James is executive vice president and chief sales officer for NFP, an insurance broker and consultant.

"So, from the beginning of my career, someone had a very deliberate way of inviting young diverse, upcoming students for higher education, to expose them to the workforce in a professional manner," he recalled. "And that blueprint for me, is something we should be doing across our industry today."

Today, John Hancock is a major sponsor of the MLK Summer Scholars, which now hosts more than 600 students annually. Since 2008, John Hancock has invested over $16 million to fund the program and create inclusive career opportunities for more than 6,000 student participants.

James is paying it forward through his involvement in the Financial Alliance for Racial Equity (FARE). Kristi Martin Rodriguez, senior vice president, Nationwide Retirement Institute, Nationwide Financial, founded FARE in 2020.

The impetus came via a Nationwide study, in conjunction with the American College of Financial Services, to determine why there was a lack of diversity in the financial services industry. The results found that 87% of Black advisors face distinct challenges within the financial services industry because of discrimination, lack of mentorship and lack of a natural market.

The FARE mission "is to increase racial diversity, drive greater equity, and foster inclusion within the financial services industry and communities served."

Martin Rodriguez, who moderated Monday's panel, said James was "one of the first" to get involved in the new effort.

"We often say underserved does that mean they cannot afford [life insurance]," Martin Rodriguez said. "They just live in an underserved market."

InsuranceNewsNet Senior Editor John Hilton covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]. Follow him on Twitter @INNJohnH.

© Entire contents copyright 2023 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.