The following in an opinion article written by Eduard Goodman, global privacy officer at CyberScout.
The millennial generation has become the “it” market for insurers who want to capture a cohort that will have $8 trillion in spending power by 2025. The largest generation in sheer numbers, this 18-40 age group is the most active online, yet they are also the most highly victimized by cybercrime. With the right tools and knowledge, insurance agents can better understand the risk profiles of Millennials and offer coverage to help address their cybersecurity concerns.
Millennials: Same problems, new solutions
Much has been discussed about the seemingly careless, potentially risky online behavior exhibited by Millennials - they’re always connected, sharing their personal and financial data across the internet. But in many ways, Millennials have the same challenges as the generations before them. College education is expensive, finding a good job is difficult and money is tight. The difference is in the way this segment copes with those age-old obstacles.
For example, where previous generations solved their transportation problems by buying inexpensive cars, younger consumers forego automobile ownership costs entirely and instead rely on Uber. And because downsizing hit the residential real estate market hard during the recession, fewer post-college Millennials can live with their parents to save money. Instead, their generation goes online to find tiny houses and shared apartments.
Lacking the disposable income for an unlimited data plan or home broadband, Millennials are likely to take advantage of free public Wi-Fi whenever possible. Though cost effective, this puts them at higher risk of being hacked if their device isn’t well secured against intrusion. Coupled with the fact that they store sensitive financial information, personal photos and all other manner of data on their smartphones and tablets, it’s a perfect combination to increase risk and vulnerability.
This evolution is important for agents to understand because it drives everything - from how Millennials buy services to why their property and casualty needs bear little resemblance to those of their parents’ generation. Knowing how Millennials deal with financial pressures, producers can consider how to address the cyber risks that Millennials face and discover where sales opportunity still exists. Members of this generation may not be bereft if their car breaks down (a ride can easily be booked online), but a phone bricked by malware is a serious worry.
Relating to Millennial clients
A shift in thinking can keep producers in front of the game. Home ownership is out of reach for many in the younger generation. As a result, they live in apartments longer than their parents did. For agents, this means renter’s coverage can offer a prime entry point.
And while Millennials may not have a car to insure, they rely on expensive electronic devices and urban-friendly bicycles on a daily basis to work, communicate and get around. Damage or loss would pose a significant financial hardship, so millennials would benefit from a renter’s policy that covers those items. When renters’ products also include cyber coverage, and when agents can clearly explain to clients their potential vulnerabilities and the value of protecting their digital assets, Millennials may be more inclined to purchase a policy.
In addition, independent agents have the flexibility to help millennial clients find coverage that addresses their specific needs and risks. By looking to those carriers that focus on cybersecurity, producers can engage their younger clients with truly relevant solutions.
Eduard Goodman is an internationally trained attorney and privacy expert, with more than a decade of experience in privacy law, fraud and identity management. He is global privacy officer at CyberScout, a leading data security, privacy and fraud protection firm whose services are provided by 16 of the top 20 U.S. property and casualty insurance carriers, and six of the top seven Canadian insurers. For more information, visit www.cyberscout.com.
The views expressed within the article are not necessarily reflective of those of Insurance Business.
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