Millennials are a significant cohort of the national demographic, it is important to understand how millennials operate in multifaceted American society. For the record, millennials are the generation born between 1982 and 2000 (www.census.gov), and they represent approximately 25% of the population. This large population consist of the workers and consumers who will drive the economy for the next 60 years. From an insurance standpoint, millennials are consumers of insurance as well as the principal labor force thus the insurance industry needs to stay abreast of the nuances of millennials.
Here are some facts about millennials:
- 50% of millennials would be more willing to make a purchase from a company if their purchase supports a cause – brands that stand for more than their bottom line.
- 37% say they are willing to purchase a product or service to support a cause they believe in even if it means paying more.
- 46% report having more than 200 Facebook Friends
- Millennials are 2.5 times more likely to be an early adopter of technology than other generations.
The insurance industry is going through significant changes in the changing of the guard as baby-boomers retire and are replaced by millennials. Add to that simple generational change technology that is transformative and designed to provide more data and information that can be put to use throughout the insurance company
or agency, but, as we often hear, “not so fast.” Yes, it looks fairly easy especially with transformative technology that will eliminate redundant processes, reshape other processes, and automate when and where possible.
Note that last bullet point above. Millennials are technology savvy. Unfortunately, the insurance company’s industrial strength technology doesn’t compare to the iPhone or consumer-based technology. The common question asked by millennials is “why can’t the system just “do it”? or, the system is sooo slow, my _______ (insert your laptop, phone, tablet, game console here) is a thousand times faster. While mom might have been willing to put up with green screens and mountains of data entry her daughter isn’t.
While the legacy systems might be slow and uninteresting, insurance companies, over the last several years, have launched major initiatives to accelerate the digitization of information for themselves as well as their agents. Carriers are seeing the benefits of improved user and customer experience in business growth, improved information landscape, and in the ability to use data to deliver insight into the business.
When you look at the vast array of technologies that are coming to market (Insuretech) and the focus on growth, the old millennial gripe about insurance being boring is giving way to artificial intelligence (AI), predictive analytics, real-time access to data and information, and some really cool technology being used in claims, underwriting, and for the insurance ecosystem.
The puzzle is disappearing.