4 Ways to Capture the Millennial Insurance Market | Insurtech Insights
Millennials are now the largest generation in the U.S., but also somehow the most under-insured generation. When you also consider the fact that 77% of millennials believe it’s risky to not have insurance, it’s clear that something isn’t adding up when it comes to insurance for millennials.
So, who are millennials?
They’re the generation born between 1980 and 1995, which means they can be in vastly different life stages within their own generation. But whether they’re in graduate school, hustling up the corporate ladder, or raising children, millennials are a unique generation that’s changing the insurance game.
Millennials get a lot of heat around their purchasing habits (avocado toast ring a bell?), but the way they live is starkly different from previous generations in small but meaningful ways: they often prefer the sharing economy for cars, apartments, and more, they value technology, and they travel the most out of any other generation.
Research shows that more than half of millennials don’t have life insurance and 43% of millennials are concerned, more than any other generation, about leaving their dependents in a difficult financial situation should they pass away unexpectedly.
While life insurance is just one of many insurance products for millennials, the fact of the matter is that this generation needs and wants insurance, and it’s up to you to show them how to get it.
So, with this in mind, here’s how you’ll capture the millennial insurance market.
Make It Accessible
Insurance might seem like a must have to many, but many millennials believe they simply can’t afford it. In fact, 80% of consumers misjudge the cost of life insurance, with millennials overestimating the cost by a whopping 213%. In order to get your share of the millennial insurance market, you’ll need to show them just how affordable life insurance is.
Because it is, after all, life insurance is most affordable when you’re young and healthy, and the earlier you lock in rates, the better. For millennials, now is the very best time to purchase life insurance.
Make it accessible to them by making the process simple and making the benefits of life insurance clear; one study reveals that 70% of respondents say they’d be likely or very likely to purchase life insurance if they better understood it, and 67% would if the process was easier or faster. You might need to tweak the way you work slightly, but if you can, the clients are there for the taking.
And life insurance is just one inroad into capturing the millennial insurance market. Start there, gain your client’s trust, and then recommend more insurance products that are relevant to them and their lifestyle.
If you haven’t already spruced up your digital footprint, now’s the time. It’s no secret that millennials love technology and devices. In fact, millennials make 60% of their purchases online, and 36% of their total purchases use their mobile phones.
Doing a review of your website to ensure it’s user and mobile friendly as well as ensuring your social media is up to date will pay back in dividends when it comes to millennials. After all, millennials are spending more time than any other generation researching products before they buy (4.4 hours on average). The first impression they get from your online presence matters, and shouldn’t be underestimated.
Become an Advisor
When you’re in sales, it’s hard not to give it everything you’ve got and push for the sale. But taking a different tact with millennials is going to get you further. Consider this: only 19% of millennials believe that people are trustworthy. Shifting to an advisor role will help you gain the trust of millennials and earn you lifetime clients. Millennials are looking for guidance when it comes to insurance, and that’s your way in.
While you’re at it, make sure you don’t hold back information while trying to win their business. We know that millennials do their research, and most information around insurance is readily available online. Playing your cards close to your chest might seem like a strategic way to ensure clients continue to rely on your expertise, but it will more than likely backfire. Instead, share what you know to build their trust and earn their respect.
On top of playing more of an advisor role to millennials, agents should also focus on storytelling when it comes to working with this generation. Millennials are looking for authentic, compassionate, and trustworthy content. 43% of millennials consider authenticity more important than content.
Telling the story of the benefits of insurance will help you convert a lead to a client more so than focusing on the fear aspect of insurance. Life is scary enough without insurance agents engaging in fear-mongering too—highlight the benefits of insurance, make it personal, and make it authentic.
Insurance for Millennials: The Bottom Line
Millennials are a unique generation. The selling tactics that work for other generations might not work on them, but adjusting your approach is well worth the effort. Millennials want and need insurance products, and these four ways to capture the millennial insurance market will help you grow your book of business and earn you lifelong clients that purchase a range of insurance products from you.