The younger generations need insurance more than ever. They face rising healthcare costs, financial uncertainty, and a volatile market. A large portion of this demographic is either uninsured or underinsured. They have unique requirements and traditional insurance options don’t fulfill them adequately. Insuring younger generation clients needs a different and more nuanced approach.
Unique Insurance Needs of Millennials And Gen Z
Millennials and Gen Z individuals have unique insurance requirements. They rarely work 9 to 5 jobs and typically have two or three sources of income. They tend to live a fluid lifestyle that can change in an instant, so they tend to look past permanent decisions, like buying insurance. Here’s a look at some of the unique requirements of this demographic:
- Contract Workers or Freelancers – The younger generations are part of a gig economy. Most of them are contract workers or freelancers, which means they don’t get any insurance coverage from their employer.
- Don’t Own Cars – Many millennials and Gen Z clients don’t own cars. They share rides or use other modes of transportation to get where they need to. They rarely need auto insurance.
- Renting Apartments – Many people in this demographic prefer to rent instead of buying property. Some want to become homeowners but don't have the resources to do so.
- High Student Loans – The younger generation is highly educated but they also face an unprecedented student loan crisis. Most of them are tens of thousands of dollars in debt.
How Younger Generations Shop for Insurance
The younger generations are very tech-savvy and they know how to conduct online research. These individuals never spend money without thoroughly investigating a product or service. However, the younger generations are planners - they plan to buy a car, they plan to buy a house, and they plan to buy insurance. Your job is to make buying insurance appealing, so they follow through on their plans:
- Focus on Technology – Millennials and Gen Z clients appreciate a strong, user-friendly technological platform. They want a host of digital tools that will help them keep track of their policy and make premium payments easily.
- Flexible and Alternative Insurance Solutions - The younger generations (like those before them) are changing the game in many ways and finding new and alternative ways to live and work. Insurance needs to follow with more flexible and alternative insurance solutions that fit the Millennial and Gen Z lifestyles.
- Personal Touch – Market surveys indicate that they value user-experience over everything else. They will do their research online but want to close the deal with good old-fashioned eye contact and a handshake, or wherever the post-pandemic version of those may be.
You need to offer the best of both worlds to get good results. If you want to offer insurance for millennials, incorporate technology and personalized service into your business plan.
Contact AAI to get the support you need to market yourself and your agency to your target audience, including access to top insurance providers with insurance options for every generation.