Millennials. The digital-native generation. Generation Y. No matter what you call them, you’d better get busy figuring out how to reach them.
Studies show that millennials are the most underinsured generation of our time. A 2014 survey commissioned by InsuranceQuotes.com indicated that nearly 24% of consumers ages 18-29 lacked health insurance coverage, despite its being required by federal law. Furthermore, they were the least likely age group to be covered by auto, renters or homeowners, life, or disability insurance, according to the survey.
As an agent, can you throw your hands up and walk away from such a seemingly insurance-resistant market? Or should you get to work figuring out how to bring them on board instead?
They are young. They are strong. They are invincible. Or so they think. This part of it is nothing new. Do you remember when you were in your 20s? Enough said.
It’s their parents’ fault. Sort of. Kit Yarrow, a financial psychologist at Golden Gate University, explains, “Millennials grew up with overprotective parents -- which decreased their level of fear -- and fear is what propels people to buy insurance.” And surveys show that more and more of these young people are dealing with financial problems (sometimes caused or exacerbated by inadequate insurance coverage) by “boomeranging” home and having Mom and Dad bail them out.
They really, really love their technology. A Gallup study showed that nearly half would prefer to purchase insurance and subsequently engage with their carrier online, rather than through a face-to-face with an agent.
Many are choosing to forego/delay marrying, having kids, and car and home ownership. Fewer responsibilities translates to fewer reasons to invest in insurance.
But the good news from the InsuranceQuotes survey is that 95% of millennials said they do care about their financial security, rating it as “very” or “somewhat important” in their lives – nearly the same as the ratings of older consumers aged 30-64. So…
*This part is both difficult and crucial. Because Gen Y-ers don’t cotton to hard sales or finger-wagging. Actually, does anyone?
Even if you rent or borrow a car, you have liability.
Renters insurance is cheap. And well-worth it when your new laptop or 65” TV gets stolen.
According to a 2013 U. S. Social Security Administration fact sheet, the odds of a being disabled for more than three months during your career is 25%. Throw out your back at the gym or rupture your Achilles in that pick-up soccer game and your finances may say “ouch” too.
If you still have college or other loans to pay off, is it really fair to leave your parents or other family members who co-signed strapped with that debt if something happens to you? A half million dollars’ worth of term life can be as inexpensive as $20 a month. Give up a few craft beers, energy drinks or lattes a month and you can protect those who’ve so long protected you.
Even if your current workplace has a great insurance plan, remember that it won’t transition with you when you change jobs, which you probably will. Multiple times in your career.
Remember when you were five and 100% sure you’d grow up to be a cowboy/ninja/princess or, better yet, a combination of all three? Things changed. So will some of the things you think you’re so sure of at 25. Hedge your bets and prepare.
The folks at LifeHealthPro.com asked some industry experts on millennials and insurance how they reach out to Gen-Y’ers. As you might expect, words like technology, internet, social media, and convenience pop up repeatedly. But you may find a few surprises too.
You won’t want to miss their specific responses here.
If you’re ready to reach out to the Millennial market, but you’re still not sure how, reach out to AgenciesOnline. Our expert marketing crew has been voted the best of the best among insurance marketers by agencies just like yours.