The media often paints a picture of Millennials and Gen Z as frivolous and social media obsessed, but, in reality, they are savvy consumers with billions in spending power. And, as they reach adulthood, their need for – and use of – insurance products is prime for growth. In fact, researchers found that in the next three years Millennials and Gen Z will make significant life changes which include buying homes and cars, having children, and changing jobs or starting businesses. The question is, are insurers prepared to capitalize on these changes?

Younger Generations Want Convenience and Education First

Many insurance brands are already actively pursuing these pivotal demographics through digital tactics. We know that Millennials and Gen Z are more likely than older generations to begin their research on websites, but social media and brand reputation play an important role in the process as well. Interestingly, when it comes to digital touchpoints, 43% of Millennials and Gen Z say positive online reviews are a critical factor, followed by brand reputation (41%), convenience (34%), social media engagement (28%), a modern website (24%).

Top-notch reviews are essential for brands, so be sure to swiftly respond to criticism online and immediately address any public relations issues. Social content can go a long way in educating younger generations on the importance of insurance and the benefits of purchasing insurance at different life stages. These digital plays allow brands to introduce products at, or before, the moment critical life events happen.

What Makes Millennials and Gen Z Purchase Insurance Products?

When it comes to purchasing insurance products, Millennials and Gen Z want easy access and convenience. However, they place as much value as older consumers on expert advice and a recommendation from someone they trust. Interestingly, while price is a factor, it’s not the most important determinant when making purchase decisions. Here’s what a recent study of insurance purchase factors among Gen Z and Millennials found:

52% made decisions based on the most comprehensive coverage for a good price

49% were seeking a provider with a reputation for good service

36% decided on a provider because it was easy to purchase

Connecting 1:1 with Millennials Speeds the Path to Purchase

Perhaps not surprisingly, the study found that Millennials and Gen Z had anxiety around “what-if” scenarios and wanted to better understand the limits of coverage. In fact, 80% of those surveyed wanted access to an agent to help them understand the complexities of their plans. The ability to talk through scenarios with a knowledgeable provider played an important role in converting Millennials and Gen Z. Only one-third of Millennials say they are insurance-savvy, and offering experiential opportunities to connect one-to-one with these consumers is essential to establishing your brand and converting them to customers.

The COVID-19 Insurance Connection

The COVID-19 Pandemic has affected younger consumers and their mindset around insurance. A full 48% of Millennials and Gen Z consumers said that the pandemic changed their views about insurance. Similarly, concerns about climate change and health and the effects of climate change on the environment will continue to accelerate the need for insurance to protect both their health and property. Insurance brands can get in front of these changing customer needs by responding with new or modified products that address these concerns.

COVID also accelerated the shift to more people working as independent contractors in a “gig” economy. Whereas most individuals’ health insurance was tied to their employer, in this new economy consumers will be researching and purchasing insurance independently. Among Millennials, within the next three years, 45% expect to have a new job, 40% intend to work remotely, 23% plan to do project work as independent contractors, and 22% will start a new business. This offers a new opportunity to introduce products specifically for these consumers.

This is an exciting time for insurance brands to connect with Millennial and Gen Z consumers in new ways and build lifelong relationships. A fully integrated creative marketing solution will be key to connecting and communicating with these emerging economic powerhouse generations. Contact us today to discover how Inspira Marketing Group can help your insurance brand stand out.

Sources: Understanding Millennial Insurance Consumers, McKinsey & Co, US Consumer Sentiment During the Coronavirus Crisis 2021, Majesco Big Challenges for Insurance: Gen Z & Millennials Make Bold Moves 2022