Millennials are changing the insurance industry model. Are you one of them?

Millennials are changing the way we interact within the world. According to Nielsen, a global measurement and data analytics company; Millennials are now one of the largest generations in the U.S alongside baby boomers. There are an estimated 77 million of them around the age of 23 to 38 as in 2019, and they’re changing the way business should be made, either as a consumer or as a vendor. 

One thing that characterizes this generation is their power of influence, as they have proven to shape the spending behaviors of the baby boomers and Generation X as well, according to a study from FutureCast. Each generation has its identifying characteristics, but what distinguishes a Millennial from the rest? Technology use and how quickly they can master it is what defines them. According to Gibson (2009), this main difference between generations is more visible inside the workplace. Millennials now represent 35% of the U.S labor force, making them at the same time, one big group of consumers.

It’s important to keep in mind their different lifestyles in contrast to other generations, like the fact that 92% of Millennials own a smartphone in comparison to Generation X (85%) or Baby boomers (67%). Making them one of the most active groups in the mobile industry. But contrary to the belief, as Nielsen (2014) points out.

“Millennials aren’t just using technology to connect with friends. Their comfort level with digital has them engaging online in ways other generations are just warming up to…”

A clear example of this is the use of the internet as a tool to acquire insurance policies online instead of with an agent, making it twice as likely compared to other generations to interact with insurance companies exclusively online.

With that said, this generation requires not only a different marketing communication strategy but also a new model of business. Social media has been a big influence and game-changer when talking about product discovery and purchasing decisions. It is estimated that 55% of the people who have bought something online was after social media discovery, according to a study made by Kleiner Perkins on Internet Trends of 2018.

This means that carriers are obligated to have a strong online presence, not only through user-friendly websites but also through social media sites and ads to deliver a better experience for millennials to get a quote, ask questions, file a claim or look forward to acquiring a new policy. The influence this generation has with the media, communication channels and digital technologies throughout different industries including insurance has made a huge impact on how companies interact with consumers. Agents need to focus on both social media and technology developments to approach more efficiently prospective clients. 

It’s not only important for companies to modify their marketing strategies to sell, but to create awareness and engagement with their customers, alongside an efficient sales enablement. This type of generation wants different attributes than what older generations wanted, they don’t want to feel like one of the masses, they want personalized experiences and customized products. In addition to ethical production and good customer experience.

Products are expected to meet the high standards that companies promise in exchange for their retention, and loyalty as consumers. 61% of Millennials would change brands due to a bad experience, and in a globalized world with a lot of options in the market why wouldn’t they? As they point out customer experience as the number one brand differentiator, leaving price and product behind.

Customer service plays an important role as this is often the face of the brand. It’s also the closest human interaction a company will have with its public, so it’s crucial to offer a human quality encounter in this digital world, where expectations are continually growing simultaneously as technology evolves, creating personalized and value-driven interactions. Brands need to recognize them and their needs at the moment of solving a problem.

On Microsoft’s 2018 Global Customer Service Report, advice that:

“Smart alignment and application of digital tools like video chat and AI-enabled virtual agents as part of your omnichannel approach will help you achieve a level of support that’s sure to delight.”

Generation Xers and baby boomers’ executives should learn to have a different perspective toward Millennial’s practices and try to understand their needs so they can successfully target their products and services. It’s critical to stay up to date with Millennial’s trends so they can influence other generations on their consumption and social media usage. Industries should contemplate targeting this generation due to its massive size, becoming more a necessity rather than an optional decision.

For the insurance industry this seems to be a challenge when it comes to engagement with their customers, Millennials seem to be the least satisfied generation with the online experience, according to a research by Gallup (2014):

“Unfortunately for insurance companies, millennials are least satisfied with any generation with the online experience, and this could be one of the reasons for this tech-driven age group’s low engagement overall with their primary insurer.”

This means that insurance company leaders need to bet more on different tools and strategies to improve interactions with their customers to create build stronger relationships. InsurTech is a new way to apply high-tech into the traditional insurance model, exploring different avenues to attract and retain potential clients through customized alternatives that fit their different agendas and lifestyles allowing products to be priced more competitively. Creating customized policies, offering cybersecurity insurance or using system management to help you keep track of your clients are different ways InsurTech is being applied nowadays.

Getting effective system management can help significantly in the way you interact with this generation, and even improve your relationship with other users. Sentry insurance agency management provides the latest tools to assist you in being organized and helps you optimize your time with different features to facilitate your daily tasks, making the work easier while offering cutting edge technology. Fulfilling your customers’ expectations, through an innovative platform.

Did you know each year Millennials have higher expectations of customer service? Working on creating better engagement has proven to show that customers tend to be less sensitive about pricing when looking for a primary insurance carrier. They’re also likely to spend more on a variety of different products and recommend them to others, creating longer retention with the company.

It is also important to attract Generation Y to the insurance field, to continue building new paths in which insurance business will be conducted, providing ways to understand how different formative experiences have shaped today’s points of view of the world.

Surprisingly, the insurance industry seems to be one of the jobs that comply with this generation’s expectations, 87% of millennials working in this field would recommend a career in insurance to their friends, and not only that but 72% of them indicated to be planning on working in insurance as long as possible, being work-life-balance the number one benefit of being part of the industry. The same study points out that three-quarters of millennials working in insurance had been doing so for more than three years.

The millennial generation has a lot of benefits to offer to one of the oldest financial businesses ranging from the latest technology mindsets to enthusiastic work values. Organizations should provide development opportunities to millennial employees while also providing them with the right skills training to contribute to their professional growth. 

As Michael Dimock, the president of Pew Research center says:

 “We’ll keep in mind that generations are a lens through which to understand societal change, rather than a label with which to oversimplify differences between groups.” (Dimock, M 2018)

Millennials are now entering adulthood, and in a few years, they will impact with full force in the marketplace so we better start addressing their unique needs by providing a better service and creating content that will provide value and resonate with each of them.

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