Millennials represent the largest living generation in the country, which also means a huge part of the market. However, they are much more like to spend money on gym memberships, digital services, entertainment, and leisure. For insurance companies, this means that several changes need to be made in order to attract Generation Yers. This is why we need to ask, what do millennials expect from insurance companies?
There have been several studies and surveys that analyze spending patterns and financial priorities. One of the most light-shedding was the 2017 Insurance Barometer by Life Happens and LIMRA. This study shows, among other aspects, that millennials tend to overestimate the price of insurance. It also shows that millennials have other financial priorities in mind before considering having a life insurance. The most interesting finding, though, is that they have several doubts and misconceptions about insurance.
Millennials Want Insurance Agents to Approach Them
According to the Insurance Barometer, one of the main reasons why 50% of millennials don’t have insurance is because no one has approached them. Insurance companies need to actively engage millennials more and have in-depth discussions about insurance.
The survey also shows an interesting trend. Almost 65% of millennials are looking for insurance information online. Whether on the company’s website or through online searches. They are still lacking the personal interaction, and even waiting for insurance companies to start targeting them, so both parties can benefit.
They Want Effective Communication
Just as they want insurance companies to target them, millennials also expect to have different communication channels that can help them get both detailed information and personalized experience. We all know that older generations rather grab their landline phone and call the 1-800 number to contact their service providers.
The fact that millennials are the first truly digital generation, they are less like to give you a call, but more likely to send a text or communicate via chat. Providing millennials with several communication channels will result in more engaged customers. Showing your customers that their voice matters can go a long way, especially with millennials.
Millennials Must Know the Details
Insurance companies need to keep in mind that millennials are still a young market, recently becoming financially independent. Keeping this in mind, we need to make sure the terms of our policies are crystal clear. Besides, millennials don’t like to pay for services or add-ons they don’t really need. Generation Y is all about personalization and customization when it comes to business, and insurance policies are no exception.
This is why millennials want to have their particular needs heard, and their plans tailored accordingly. Standard or “most sold” plans won’t do with them because most millennials don’t have so many assets to insure yet. Also, some might consider themselves too young for some coverage plans, and some others may just not be interested at all.