Nowadays insurance companies come across with a major challenge: They are having a hard time trying to get Millennials to buy their products. This generation of almost 75.4 million people are going to dominate the market in years to come, so they will become THE most important customers for your business.
It’s essential to understand Millenials needs to build loyalty and get all the benefits for your company.
Gallup points out that engaged insurance customers are less sensitive about pricing when selecting a primary insurance carrier, buy more products and stay with the company longer.
However, according to several surveys, Millenials are the most underinsured generation since the war. They prefer to spend their money in other priorities like paying student loans or traveling abroad than investing on a policy.
Is there anything we can do to attract Millenials?
There are several recommendations that you can follow to connect with your millennial customers, starting with innovation. Remember that this generation of customers have grown up in the world of digital technology, which is part of their identities and shapes their attitudes.
Insurers will have to create new customizable products to appeal Millennials, that allow them to get the policy they need when they need it and without too much paperwork. Gallup’s reseach shows that 27% of Millennials purchase their policies online, and this trend seems to grow. You need to ask yourself what kind of online experience are you offering right now to your customers.
Millennials also love and expect continuous communication and remain in constant touch. They want to be part of the conversation. To build a strong relationship within this customer base you will need to invest on improving online interaction. A social media strategy is the ideal way to start creating a bond with your customers.
Gallup also found out several drivers for millennial customer engagement when facing the decision to buy insurance online such as:
- Keeping personal information secure with cutting-edge technology.
- Customizable coverage.
- Finding the answers to insurance questions.
- Offering services online.
- Access to a variety of payment features.
- Easy access to policy information.
- Friendly navigation on the company’s website.
What’s next? Insurtech
Digital world brought new expectations for customers and new challenges for traditional carriers. Insurance Start-ups are connecting digital with technology to better suit peoples’s necessities trough solutions that involve mobile, IoT and wearable applications.
Many insurance companies are now investing on Start-ups to find ways to collect and analyze information about their customers. Connecting with client´s new needs and expectations will also be a great way, if not the only, to build loyalty among customers.
If you want to get more information about insurtech, check out this article about 9 More Disruptive Startups: http://www.insurancenetworking.com/gallery/innovation/insurtech-check-in-9-more-disruptive-startups-37053-1.html