Did you know that in the next 3 years Millennials and Gen Z will comprise 75% of the workforce? That means by 2025 the majority of working individuals will have been born after 1980! If you were startled to read that, you’re not the only one.Insu
Did you know that in the next 3 years Millennials and Gen Z will comprise 75% of the workforce? That means by 2025 the majority of working individuals will have been born after 1980! If you were startled to read that, you’re not the only one.
As these newer generations begin entering the workforce, they also begin making other major life decisions like buying a car or a house. While each generation brings with it new trends and technology, one thing remains the same – the need for insurance.
Younger consumers who’ve grown up with modern technology are demanding easier, faster, and all-around better products and services from every area of life including insurance. As consumer expectations continue to rise, insurance providers need to find ways to adapt if they want to win over the new generation.
As kids, Millennials and Gen Zers were constantly exposed to new technology. It’s hard to find a young person today who doesn’t at least own a smartphone. Growing up with smart technology means newer generations are accustomed to the speed and efficiency of online shopping and mobile apps, so it makes sense that they value the same qualities when it comes to buying insurance.
The legacy systems many insurance companies still use won’t impress the newer generations with their slow speeds and inability to integrate. New consumers will gravitate toward insurance providers with updated systems and processes which allow for easier use and instant gratification.
Contrary to popular belief, a tech-forward approach to business doesn’t negate the need for exceptional customer service. All generations, including Millenials and Gen Z, value customer service when making purchasing decisions.
One study found that 71% of Millennials surveyed feel the most important thing a business can do is show that they value their customer’s time. Young people value quick responses from customer service reps that get to the root of the problem fast. And while they want these solutions delivered via technology, they also demand live agent contact, meaning no more waiting 45 minutes on hold with a chat robot before speaking to a real human.
If it wasn’t already clear from the previous two points, convenience is a huge factor for newer generations when it comes to insurance. Whether it’s through new technology or 24/7 customer service, these consumers want good service at their fingertips.
Younger generations look for insurance providers that make processes like filing a claim or receiving a quote work specific to their unique needs. Offering individually tailored services and experiences is just as important, if not more, to their purchase decision as the price is. Young people want buildable policies that don’t include any additional unnecessary bells and whistles that may go to waste.
Speaking of waste, the environmental and social impact a business has is an important factor for younger generations as they decide where to spend their money. Socially and environmentally conscious consumers realize the impact their business (or non-business) can have when it comes to creating change and are taking matters into their own hands by investing in companies with strong environmental and social impact plans. Insurance agencies (especially larger organizations) that don’t take steps to reduce their carbon footprint and speak out against injustice will likely lose market share as the importance of these factors on young people’s purchase decisions continues to increase.
Don’t worry, as an insurance professional, you don’t have to start posting on TikTok to appeal to newer generations (phew!), but you might want to consider advertising there. I’ll let you in on a little secret – I was born in 1998, which officially makes me Gen Z. My peers and I are rarely on Facebook but are heavily influenced by ads on other social platforms like Instagram and Youtube. Just the other day an ad for Lemonade, an insurance company aimed at newer generations, caught my eye when it played before the video I clicked on.
You might offer everything the newer generations are looking for when it comes to buying insurance, but how will they know that if you aren’t meeting them where they’re at?
Arguably the biggest key to gaining young people’s trust and business is to be open to change. The way the insurance industry operated 50 years ago is not the same way it should be operating today. The world has changed so much in that time and any insurance company still using out-of-date systems and processes is not going to be a top pick among new consumers.
It’s time for the insurance industry to do away with old legacy systems and embrace new technology. Industry leaders need to listen to the growing concerns of new consumers not only when it comes to their insurance needs, but also when it comes to their social and environmental values. They need to adapt to these needs and values and more importantly show new consumers that they care.
Industries across the board are actively transitioning to meet the needs and wants of the newer generations. While that may look different across industries, when it comes to insurance, what young people want is a provider who is just as tech-savvy as they are, is available when they need help, and isn’t afraid to speak out about their values. While it may seem daunting to embrace all this change, the companies that meet these new standards are the ones that will stick around.
Whether your agency, carrier, or MGA/MGU is staffed with millennials and GenZ’ers or any other generation, modernizing your producer onboarding, licensing, and compliance can help attract and retain the talent your business needs to thrive both now and in the future. See AgentSync in action today.