Millennials and insurance
Millenials are different!
By Martin Stewart : 21st of September 2019
Millennials are expected to outnumber baby boomers this year. Aged between 23 and 38 years of age, they also represent a signification proportion of consumers. But when it comes to insurance, millennials have very different expectations and needs than previous generations.
Their experience of technology is different from any other generation. For them, there is no digital experience – it’s just the way life is. Millennials have never really known life without:
Millennials expectations of products are also very different from any other generation. They expect:
Technology to be seamless
To purchase through multiple channels
Highly personalised service
Customer-centric products
To attract and meet the needs of millennials, insurers need to forget everything they know about insurance.
One size does not fit all
While previous generations accepted blanket insurance coverage, millennials want to pick and choose what they need to cover.
Sales need to be immediate
The days of collecting quotes, using brokers and researching for weeks are gone. Millennials may research and purchase in the same sitting.
Service needs to be instantaneous
Waiting on-hold to speak to a person or receiving an insurance certificate by snail mail is a thing of the past. Millennials expect speedy service through multiple channels.
Traditional family models no longer apply
Millennials are getting married later, if at all, and choosing to have children later. The traditional nuclear family that insurance products have been based on no longer apply.
Home ownership is no longer a given
Many millennials are finding home ownership out of their reach or choosing to purchase later. With 66% of millennials now renting their home.
Not everyone drives a car
Changing habits mean the demand for some types of insurance, like auto insurance, is on the decline.
Priorities have changed
Only 10% of millennials have enough life insurance in place because they’re choosing to spend their money elsewhere.
To win this generation you need to:
Service needs to be instantaneous
Waiting on-hold to speak to a person or receiving an insurance certificate by snail mail is a thing of the past.Millennials expect speedy service through multiple channels.
Enable self-service
Whether you have AI-fuelled chatbots to answer questions immediately or enable claims to be lodged by SMS, anything that saves time and lets millennials chose what they want to do and when is crucial
Enable convenience
Not everything is planned, so being able to insure what you want when you want is crucial.
Build trust with new technology
Consumers are more wary of how their data is used so technology like blockchain can be used to ensure privacy and security.
Leverage big data
The more accurate your data, the better you can calculate and price your risk. This may involve taking advantage of sensors and other IoT enabled technology to collect data.
Make it paperless
Growing up in the digital age, millennials know you don’t need paper anymore. Leveraging document management technology, video and other technology to reduce paper and enable online quotations and claims will win customers.
Give them a reason to insure
41% of millennials don’t understand the products or how they work and 43% don’t believe they have enough property to insure. Education is a key role of insurers now.
Make it social
Millennials are used to comparing products easily and reading reviews. By participating in these forums you can make it easier for them to see your benefits.
Millennials aren’t getting any younger
Many millennials are now approaching their 40s with young families in tow, so there’s no time to lose. This growing generation is demanding change. To truly meet the needs of millennials it’s time to look at how your business operates inside out and reimagine what it could be today, and into the future.