Insurance companies and insurance brokers need to turn their attention to millennials now more than ever before. In a society where insurance policies don’t cross the minds of those who need it most, what are insurers doing to engage with this generation?
43% of Millennials Forgo Travel Insurance – Why?
According to a study carried out by Allianz Global Insurance, 43% of Canadians that fall within the millennial age group of 18 – 34 year olds choose not to acquire travel insurance prior to taking a trip either abroad or internally within Canada.
The reasons for this range from believing that travel insurance policies are unnecessary (15.8%), travel coverage is far too expensive (15.3%) and that their trip was too short for it to warrant any kind of insurance protection (14.9%).
We are living in a time where the priorities of millennials and young travellers’ are considerably different from the generation that raised them. As life milestones such as buying a house and starting a family are being delayed due to financial constraints, millennials are more focused on paying off financial debts and spending their disposable income on cost-effective vacations rather than investing in insurance.
The Rising Gig Economy
The gig economy has been growing at an increasing rate in Canada. As it is predicted that the gig economy will account for as much as 50% of the workforce by 2019, the need to begin conversations with millennials is ever more pressing.
Due to the “remote work” nature of the current workforce, many in their mid-20s to early 30s are availing of work opportunities that are based on freelance and short-term contracts. This gives the younger population more independence in regards to their career development and allows for the ability to work multiple ‘gigs’ at once. However, being a generation that is considered to be the most underinsured in decades, not having the same access to benefits that is offered by full-time employment such as medical puts them at a higher risk of staying uninsured.
Gig economy workers are more likely to engage with tasks such as travel insurance purchases or renewals outside of their own business hours. This may make them more inclined to leave important decisions such as these to a later date or completely forget about them. For this reason, insurers must be willing to evolve their product offerings to attract the attention of this workforce segment.
As millennials represent a key demographic for travel insurance companies, it’s important to understand the evolving wants and needs of this tech-dependent generation. While insurance providers need to be able to adapt to meet millennials “where they are”, they also need to take on the role of educators and teach this generation about the importance of travel coverage.
What Millennials Need From Insurers
As an insurer, you are currently facing a challenge when it comes to engaging with the younger travelling demographic. In order for millennials to be willing to enter into a conversation regarding travel coverage, insurers need to adjust their marketing strategies and messaging to focus on a generation that displays strong brand loyalty.
Authenticity and Trustworthiness
Individuals today are constantly connected to the Internet and never have to reach far for their smartphones. The Internet acts as their primary source of information and without a presence online, their willingness to trust a company decreases.
Today’s generation is more concerned with building a long-lasting consumer relationship with a company that proves to be authentic and trustworthy. They live in a society where they make real-time decisions and instantly judge whether a company is worth their money and time.
In order to build trust, it is imperative that travel insurers have an online presence so that they can begin conversations in the place that millennials know best: the Internet.
One of the main needs of millennial’s is that of the education surrounding the risks of travelling without insurance. Many young travellers are of a mindset that nothing will happen to them while they are abroad or on vacation. These are young, healthy people who see no need for further protection outside of the universal health insurance that they already have in place.
Insurance companies and brokers need to take it upon themselves to begin conversations with millennials about the risks that are involved with travelling. Doing this in a way that identifies with them on a personal and emotional basis, such as emphasizing the ways in which risks can affect their future, will have a resounding impact on how they view travel insurance.
In today’s digital-obsessed society, people are constantly being bombarded with marketing advertisements from various sources, at multiple times of the day and in all places that they look.
The traditional advertising images of a happy family used by insurance providers to sell policies no longer resonates with a generation that is getting married and having children much later in life. For insurers to capture the attention of millennials with their marketing and advertising strategies, they need to improve their messaging.
Millennials look to companies who listen to them and their needs. Conversations between a company and a consumer have become more personalized and empathic. For this reason, insurers need to alter their messaging and how they engage with the millennial demographic to reflect this.
The Impact Of The User Experience
With the Amazonification of online buying processes, the millennial generation wants a hassle-free user experience when it comes to making purchasing decisions. A bad user experience can have many negative consequences on the reputation of a company especially among a generation that want processes to be easily accessible from the palm of their hand.
Long gone are the days of lengthy and fussy policy procedures. Having an easy-to-use and digital friendly user experience is essential for engaging with millennial consumers. The challenge for insurance providers now is to keep up with these expectations and provide millennials with an online experience that can be accessed on various devices and an easy to use interface.
JAUNTIN’ – How We Can Help
JAUNTIN’ recognized the need for insurance providers to better position themselves to engage with millennials especially those in the gig economy. Our on-demand mobile platform gives insurance companies the opportunity to participate in the Insurtech world at higher margins and with lower risks involved. As an insurer, you will be given access to location-based customer data which can be optimized for competitive pricing.
If you are interested in discussing further how our platform can benefit your company, contact us today.