Traditionally, companies sell insurance through an agent. But in the 21st century, there is no longer a single channel to sell a policy.
Generation Y or Millennials (born between 1982-2000) prefer to use Google as their insurance agent. Millennials are tech savvy and as the largest age group in the U.S., we are your new target market. This Gen Y blogger thinks she speaks for her generation when I say I would much rather visit a website and push the BUY button than talk to a live person. No offense, it’s not that I don’t want to meet all of you agents (I’m sure you’re lovely!), but it’s much easier and faster to purchase via the Internet.
To ensure the survival of the insurance company, you must adapt to new sales channels and engage the incoming generation of buyers.
Unfortunately, Generation Y is also the least satisfied with online experiences and have high expectations for how technology should perform. These factors certainly contribute to their active disengagement with the insurer. Integrating digital sales tools into your website and increasing your online presence will improve your chances of getting found by the Google spiders among the vast amount of options in the online arena.
Millennials are searching for a company whose website is fast, convenient and functional and that offers easy payment options and ways to change coverage online. A FAQ page and/or a live chat function would also be useful.
How are Millennials accessing your site? On their smartphone! Generation Y is fast-paced and nomadic, so the ability to make payments from anywhere is key. Create a mobile strategy for your insurance company to provide a convenient (and secure!) option for log-in and payment. If your website is not mobile optimized, you will miss out on entire segments of the market who prefer to make payments from their phones.
Unlike the Baby Boomers and Gen X age groups, Gen Y buyers will use the internet to exhaust every option when searching for a product/ service. This includes using Google for a specific search if they are already thinking about different insurance vendors. What about those people that aren’t aware that they should even be looking for insurance or that coverage could be available to them?
To capture this audience, you must create a social media strategy. Posting valuable content on social media is a great way to engage with potential customers and Millennials are also more likely to stumble across information on social media simply because they are more active on the platforms.
All this talk about Gen Y doesn’t mean you should forget about the customers in the older generations. In fact, insurance companies should be actively interacting with this group because they most likely have Gen Y (or younger) children.
Millennials are most likely to ask for advice and use the recommendation from their parents for major financial decisions than other generations. Personally, I still ask my dad for his opinion on important subjects like how to take out a loan, how much my insurance costs and how long my check engine light can stay on before my car blows up. Creating brand loyalty for families is an excellent way to increase millennial customer acquisition and retention.
Fostering a system of insurance education online is the smartest strategy for companies who want to keep businessprofitable. By encouraging the Gen Y community to be active and engaged in their insurance purchases, you will build a loyal customer base who will then recommend your company to their Generation Z children.