Millennials will soon overtake baby-boomers as the prime consumers for insurance products. However, it is argued by business advisors Fuel Cycle that insurance companies need to do more to target the up-and-coming millennial generation in 2018.
When it comes to business insurance, millennials are “tech-savvy, have little patience, and want multiple options”, according to Vijay Amballa, group VP of global insurance at Capgemini, as well as being less loyal than the previous generation. This means that they have a no-nonsense approach and want a hassle-free experience over several platforms, forcing insurance companies to adapt to their approach rather than the other way around.
This means that insurance companies have an added pressure to work hard in order to keep millennials’ business, by engaging with them in a stimulating and effective way. Millennials care less about the small print and more about if it works and can be done quickly.
So why the sudden focus on millennials?
Simply put, they are rapidly becoming the predominant customers looking for insurance policies and their approach to this is different from their predecessors. Nick Chadwick, the senior researcher at Fuel Cycle, said that it is essential in 2018 that insurance brokers “…focus on engaging millennials…” through “…social media, apps, emails, online communities, or any other method available to the insurer”.
The focus for an insurance company should be to focus on setting up direct contact with millennials by “giving a voice to [their] consumers” and ultimately focussing on convenience. Millennials are not necessarily swayed by the reputation of a company or the fact that it has been going for over 10 years. Instead, they want ease of use, so providing the channels for them to use your business is likely to make them stay. As Ambala said, the main factors are “comfort, ease, and speed.”