Millennials – they are a consumer segment that the insurance industry is looking to capture. A recent
Applied Systems survey has been turned into an eBook, ‘Why Millennials Matter,’ breaking down what this demographic is looking for in an employer, and as a consumer.
“It covers everything from demographics, to hiring, to attracting millennials as clients,” says Courtney Rains, of Applied Systems. “The document includes interesting stats from a survey Applied conducted that further reiterated the importance of multichannel engagement when engaging millennial insurance consumers, but also reiterates the perceived value independent brokers still hold as a trusted advisor to this generation.”
Millennials are individuals born between the years of 1980 and 1996 and number roughly 80 million, having already surpassed the Baby Boomer generation in size. They have been closely associated with the changing needs of the 21
st century consumer – such as the move to online, 24/7 service.
“Millennials grew up in an expanding world of choice and options for just about everything they ever needed or wanted,” says Katie Elfering, Consumer Strategist with CEB Iconoculture. “Because of this, they view life very differently.”
According to the book, millennials present a new challenge to independent agencies, and “insurance agents and brokers often experience a generational gap when dealing with millennial consumers,” citing the traditionally conservative attitude of the industry.
But it is an attitude that needs to change, as millennials will comprise more than one of three adult Americans by 2020. By 2025, they will make up “as much as 75 per cent of the workforce,” states Morely Winegold, a Brookings Senior Fellow with the University of Southern California.
Of the Applied Systems survey conducted of a sample group of 1,000 adults between the ages of 18 and 34, some of the findings included:
• 91 per cent had some form of P&C insurance coverage;
• 89 per cent had auto insurance;
• 55 per cent were homeowners; and
• 42 per cent were renters.
According to the survey, “millennials split their auto insurance purchases between in-person, online and telephone sales. Independent agents must have an effective online presence, or they stand to lose a large segment of the market.
“These results also indicate that the role of the agent as ‘trusted advisor’ is still critically important, and face-to-face interactions are still sought out by millennials.”
