Black consumers: a growing, strong opportunity

Black consumers represent the third largest consumer group in the U.S. and their buying power continues to grow. Their spending has increased 5% annually since 2002¹ and is expected to reach $1.8 trillion in 2024², representing an opportunity for new and expanded client relationships. This is especially true with 34 being the median age of the U.S. Black consumer, a life stage with opportunities for insurance consideration. Consider these opportunities:

• Over 1 million new cars were sold to Black consumers in 2021, over indexing the industry by 33%.³
• The number of Black-owned businesses is approximately 30% above pre-pandemic levels.⁴

Learn more about this strong and significant consumer group.

View the infographic

Opportunities

Hiring and retaining diverse talent

Black consumers are a loyal customer base, with 83% more likely to shop with a brand that shares their values.⁵ When looking for an agent, diversity within the agency is increasingly important to consumers, 67% reported so according to our Agency Forward research. It’s important to acknowledge the opportunity to prioritize hiring and retaining diverse talent. Increasing access to Black insurance professionals is a way to move toward an equitable future and better serve the community. Our webinar, How to Attract and Retain Diverse Talent offers valuable insights, including:

• One way is by evaluating hiring processes and prerequisites for jobs, including whether industry background, or even a college degree, is required.
• Make sure your internship or mentorship program includes schools in minority communities.
• The industry also has increased demand for people with strong data, technology, and digital skillsets, with the need to explore non-traditional talent pools.

View the webinar: How to attract and retain diverse talent

Increasing cultural intelligence

Cultural intelligence is the ability to be aware of, understand, and apply cultural competence and inclusive insights into your everyday business. While it’s easy to have a general awareness and understanding of inclusive behavior and why it is important, the application of these insights into the fundamental way you conduct business is what will have a lasting impact on your agency.

View the webinar: How to activate the power of cultural intelligence

Understanding disparities

While this is a strong consumer group, it’s crucial to understand the disparities facing Black consumers. Despite the gains mentioned above, the household net worth wealth gap between Black and white households is significant: about $154,000.⁶

The Nationwide Retirement Institute has created resources for financial professionals that may be helpful to review:

• Understanding the needs of Black consumers
• Building financial bridges with Black consumers

Nationwide’s diversity, equity and inclusion philosophy

At Nationwide, a diverse and inclusive workforce is critical to our success. Bringing together the unique characteristics of each of our associates – gender, gender identity, sexual orientation, age, nationality, disability, veteran status, ethnicity, race, religion, as well as many other differences such as thinking styles, personalities and work experience – is an integral part of who we are and how we operate as a company. We are proud of Nationwide’s inclusive culture that supports every associate’s success and encourages an environment where they can feel challenged, appreciated, respected and engaged.

Nationwide remains committed to influencing positive change and creating opportunities through our work with valuable partners including: Black Enterprise, the National Black MBA Association, National Urban League, and the Executive Leadership Council’s Scholarship Fund, among many others including those in the industry like the National African American Insurance Association (NAAIA). 

Learn more about Nationwide’s Diversity, equity and inclusion philosophy.