Urban Insurance Partners Institute |
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Moderate Income Consumers Are Untapped Market Indianapolis…According to a recent study by the Federal Reserve Bank of Chicago, many low and moderate income households need more insurance, and want to know more about insurance. Overall, these consumers hold positive views about insurance, and they anticipate using an insurance agent to purchase insurance. “Many study participants had assets that they wanted to protect, for which they did not already have coverage,” said Robin Newberger, business economist in the Consumer and Community Affairs Division of the Federal Reserve Bank of Chicago. “The magnitude of their financial setbacks also called for funds that were more in keeping with insurance payouts than with their hundreds of dollars in savings. The significantly lower rates of coverage and participants’ positive views about insurance suggest that there may be an unmet demand for insurance among this population.” These findings were the result of a study conducted by the Federal Reserve Bank of Chicago, with input from the Urban Insurance Partners Institute (UIPI), a nonprofit insurance industry organization dedicated to helping insurers in urban markets. The study results have been distributed to consumer and community asset building organizations, which can use the information to improve their consumer education and build insurance into their consumer asset-building programs. A copy of the study can be found at Chicago Fed Reserve Study The Federal Reserve Bank held four focus groups in Chicago to look at the relationship between insurance, wealth-building preservation, and financial access for low and moderate income consumers. Participants were asked how they deal with financial setbacks, how they protect their valuables, how they obtain information about insurance, and what insurance issues they would like to know more about. Participants also wanted more information about insurance, according to Newberger, including clarification on the different types of insurance available and their costs, and how to compare products. “This is the type of ground-breaking work that UIPI has been pleased to help promote and support,” added UIPI President Suzanne Reade, who is ending her term as president. “During the past seven years, we brought new urban markets data, information and best practices to a wider audience of insurers, and I am glad to have been part of this process. “We thank Suzanne for her work on behalf of UIPI, which has developed a solid reputation for bringing new information to the industry, and serving as a forum where new ideas, and regulatory issues, could be discussed, “ stated Jim Rink, UIPI chairman. “UIPI will continue to bring awareness and practical assistance to insurance industry urban markets initiatives.” Upcoming events and activities, as well as information about urban markets issues, are available at www.uipi.org. Contact information for the organization is provided at the website and through exec@uipi.org. The new phone number for UIPI is (317) 415-0899 and the mailing address is 3601 Vincennes Road, P.O. Box 2227, Indianapolis, IN 46268-1154. Suzanne Reade may be reached at (773) 880-2313. | |