“Millennials are willing to shop around for their insurance. If they have auto insurance, they’re less likely to buy homeowners or renters insurance from the same provider. When it’s time to renew their insurance, they’ll shop around for the best deal, since there’s little to no incentive for them to truly remain loyal to any particular insurance brand.”
We did a little research on the views that Millennials—people born between 1980 and 1997—share about auto insurance. Not surprisingly, wildly different conditions influenced their opinions compared to those that influenced previous generations. Here’s a look at what we found:
Millennials think insurance should be fast.
We have Geico to thank for that perception. The insurance giant spends over $1 billion on advertising every year. Millennials (and the general population) are bombarded with TV commercials, social media promotions & ads, sports marketing, digital marketing, and planes towing banners that proclaim, “15 minutes could save you 15% or more on your car insurance.”
But Millennials have little patience with insurance administration. They want the information they’re seeking quickly – and by “quickly,” they mean now.
The Takeaway: Look for ways to simplify & humanize the insurance-buying process for Gen Y.
Millennials are less loyal to insurance brands.
Millennials are willing to shop around for their insurance. If they have auto insurance, they’re less likely to buy homeowners or renters insurance from the same provider. When it’s time to renew their insurance, they’ll shop around for the best deal, since there’s little to no incentive for them to truly remain loyal to any particular insurance brand. A recent Gallup poll revealed that barely 31% of Millennial customers were classified as “fully engaged with” (read “committed to”) their primary insurance carrier, versus 34% of both Generation X and Baby Boomers.
The Takeaway: Thanks to this lack of loyalty, Generation Y is willing to try new providers, offering new opportunities for insurance providers of all sizes. This levels the playing field substantially for insurance carriers both big and small — household brand names no longer hold the trump card. In fact, Millennials in many cases would rather sign up with a smaller, newer more boutique-style carrier that “gets” them.
Millennials are less likely to engage in face-to-face interaction with agents.
For older generations, most insurance shopping begins online and concludes with a face-to-face meeting with an agent. But Millennials are much less likely to set an appointment with a local agent. In fact, a recent study by Effective Coverage (performed by ORC International) found that only 34% of Millennials who buy insurance do so from a local agent.
And according to a J.D. Power survey, Gen Y’s preference for digital self-service increased to 27% in 2015, up from 21% in 2011. Insurance agents (who are on average 60 years old) pitch specialized service and…[read the full article at www.hypelifebrands.com]