As the largest generation in America, millennials are becoming increasingly interested in purchasing insurance as they reach traditional milestones such as buying a home, having a family, and purchasing a car. However, the traditional methods of the insurance industry won’t resonate with this generation, as millennials are different from previous generations in terms of their life journeys, financial situations, and digital adoption. The millennial lifestyle and their preferences will transform the insurance industry, but it remains to be seen whether it will be for the better.
According to a recent Prosper Insights & Analytics Survey, millennials make up the largest portion of those considering purchasing insurance in the next six months. However, the traditional legacy ways of purchasing insurance are a major roadblock for millennials who are accustomed to digital convenience. Insurers must customize their products to the needs of millennials and eliminate tedious processes, long wait times, and other roadblocks.
Insurers should also communicate with millennial customers in the way they prefer, whether by phone, text, social media, or other methods. Salespeople should be equipped with tools that connect the dots on each customer and provide a complete picture of their situation so the agent can personalize each interaction. The goal is to make the process of purchasing insurance as easy, supportive, educational, and effective as any other digital service millennials use.
Digital transformation has reframed the way consumers think and interact with the insurance industry. Millennials expect speed and seamless experiences, and insurers must ensure they offer the same level of digital competence that millennials expect. Insurers should also offer smart data capture to pre-populate forms, recommendations on insurance products, guidance, and insight into insurance products, and a conversation on what might work best for the customer in the long term rather than a traditional sales call. Additionally, insurers should offer omni-channel communication with consistency to ensure agents have a comprehensive view of each customer and swift and delightful experiences.
To identify various buying signals and triggers in the millennial lifestyle across engagement mediums such as websites, phone numbers, and apps, insurers must collect the right data and ensure it is not stuck in silos that offer no insights. With a complete picture of a customer, insurers can reach out to them at every life milestone. Every piece of data collected is a crumb that any intelligent system should be able to identify, pick up a trail, and offer logical next steps to the agent who can sell the customer on the products they need.
Personalization is the future of insurance services. Delivering targeted messaging, offers, and prices to the customer is key to remaining competitive. Technologies such as AI, cloud computing, and data acquisition can help. Data acquisition is the foundation for personalization. Gathering open-source data as well as data from vehicles, smart home devices, fitness trackers, and more, and then analyzing it with AI and machine learning can help insurers deliver a more personalized experience to their customers.
In conclusion, the millennial generation’s needs and preferences will transform the insurance industry, and it remains to be seen whether it will be for the better. However, insurers that can meet the demands of this generation by providing a seamless, convenient, and personalized experience will have an edge in the market. By using AI, cloud computing, and data acquisition, insurers can create a more personalized experience for their customers, allowing them to remain competitive in an ever-changing market.