Keep posted, keep informed.
The COVID-19 economic downturn makes finding new clients for your insurance business harder than ever. Although the COVID-19 pandemic officially reached the United States in February 2020, the economy has yet to recover from this crisis.
With 8.5 million more people unemployed in February 2021 than in February 2020, employers are having a hard time making enough money to keep their employees safe and paid. The next time you meet with a new client to discuss employment practices insurance, make sure to keep these results of COVID-19 in mind.
Hispanic and Black Workers Have Experienced the Most Unemployment
Looking at the impact of COVID-19 on employment across racial and ethnic groups, Hispanic and Black Americans have had the most losses. Hispanic women faced the highest rates of unemployment, with 20.5% unemployed in April 2020. Unemployment for Hispanic men peaked at 16.9% in the same month. In May 2020, unemployment for Black women peaked at 17.3%, and in June 2020, unemployment for Black men peaked at 16.1%.
While these high unemployment numbers have fallen, when you’re meeting with potential clients, you must remember that the effects of widespread unemployment do not just disappear. Altering your rates and offering more comprehensive plans may be your best path to securing new clients.
Women’s Roles in the Economy Have Changed
The trend of higher unemployment rates for women than men in Hispanic and Black communities holds true for the entire United States. Before the pandemic began, the unemployment rate for women was 3.4%, and the rate for men was 4.1%. However, by April 2020, 15.7% of women were officially unemployed, whereas men’s unemployment rate peaked at 13.3%.
In addition to these trends, over half a million more women than men stopped working or searching for jobs. While 1.8 million men stopped working between February 2020 and February 2021, 2.4 million women left their work in the same year. Fewer women than men worked to begin with, so this disparity is even greater than it appears.
When you meet to offer clients employment practices insurance, talk to them about their plans for getting women back into jobs and supporting their employees who are parents.
People With Low-Income Jobs Lost the Most Jobs
As the COVID-19 pandemic started, most service industry businesses such as restaurants, hotels, and resorts shut down or limited their services. People who worked these low-paying jobs experienced the most unemployment throughout the pandemic’s first year. High-wage workers’ employment rate experienced no significant change, while middle-wage workers lost jobs at 5.4%. Low-wage workers’ employment rates, on the other hand, decreased 11.7%.
When you’re offering employment practices insurance to clients within the service industry, remember that they are rebuilding from months of closures and layoffs.
About Mavon Insurance
At Mavon Insurance, we pride ourselves on our unique approach to insurance. We focus on integrity, communication, professionalism, respect and gratitude to help our clients succeed and place business in specialized markets. For more information about our products, or to become an agent, contact us today at (855) 248-1480.