Existing insurance products do not fit millennials’ needs, study says

 

Danielle Cripps, financial analyst at the research and consulting firm, said millennials have different insurance needs and preferences compared to the mass market.

 

Compared to previous generations, millennials own fewer insurable assets, Cripps said. They are more likely to rent than own their home, so they only need contents insurance or cover for their gadgets rather than a combined or buildings policy.

 

As for motor insurance, millennials are interested in car-sharing and telematics-based policies to save money. They also prioritise holidays and short-term experiences.

 

However, millennials taking a gap year or those at university may require longer-term travel insurance, Cripps also explained. They also have a greater need to cover gadgets and hazardous activities compared to mass market consumers

 

“In other words, they are not traditional customers – meaning that in some product lines standard insurance packages do not fit their requirements,” Cripps said.

 

GlobalData believes that it is not only product features that need to be tailored to the digital-native millennials, but also the ways in which younger customers access and engage with their policies.

 

“Millennials are digital natives, and at the very least providers targeting this generation should ensure policies are available to purchase through online channels,” Cripps said. “Providers should take advantage of millennials’ high ownership of smartphone devices, which are taken wherever they go.”

“Apps and social media platforms provide insurers with more opportunities to engage with millennials as customers and to enhance policy and brand engagement.”


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