Millennials and Modern Insurance

When one says “millennial” the first thing that might come to mind is a hyper-connected, tech-savvy, brand-conscious, laissez-faire, selfie-taking teen.

When one says “millennial” the first thing that might come to mind is a hyper-connected, tech-savvy, brand-conscious, laissez-faire, selfie-taking teen. Despite the fact that the exact age band for Generation Y is not all together clear, what is known is that a millennial is not only the selfie-taking teen, but also the 40 year old exec who might be tasked with high stake decision making. It is the millennial generation that will soon dominate the market and in doing so they (we) will be tasked with becoming the biggest decision makers in the business world.

The millennial generation has grown up in the internet age that is tech dependent and dominated by a variety of social media platforms and mobile apps. Even though a millennial might have had to contend with a slow internet dial up connection, as the modern age has progressed, we have become accustomed to instant gratification and convenience. Online shopping, Uber rides and uCook meals are among some of the product offerings to appease our preference for fast and easily accessible products and services. Our priorities and views of the world are vastly different to the older Generation X, and because of this, the methods in which insurance products are delivered to the market ought to change too.

According to Brown and Kim (2017), the purchasing patterns for insurance by millennials appears to be relatively low and this generation is particularly skeptical of the traditional mass media advertising campaigns used by insurance firms. Furthermore, millennials, for the most part, do not necessarily trust an insurance company’s sales pitch and are therefore less inclined to buy an insurance product that is being advertised. On the other hand, a millennial would much prefer to discover products and services themselves which is facilitated by widespread and ease of access to information. Insurance companies and agencies alike may therefore need to find more effective communication mediums, since traditional approaches may no longer be relevant. More innovation in product distribution and delivery (and not necessarily actual product design and development) is needed so that traditional and long-established insurance companies are able to compete with new age insurers who have come to use mobile apps and virtual insurance agencies to target this evolving customer base. As e-commerce becomes more integrated into the insurance “ecosystem”, insurers will achieve business excellence by exploiting the lower “internet cost structure” and related profitability in addition to the various other operational efficiencies (Maurya,2017; Prymostka, 2018).

So now that millennials are no longer the “new kids on the block”, firmly establishing themselves in the workplace and en route to becoming the next CEOs of Fortune 500 companies - the millennial is now your most important customer.

 

References

Prymostka, O.(2018). Life Insurance Companies Marketing Strategy in the Digital World. InsuranceMarkets and Companies, 9(1), 70-78

Maurya, P.(2017). Application of Technological Changes in the Insurance Industry inIndia. Journal of Engineering Research and Application, 7(4), 63-66.

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