Insurance companies have consistently missed the mark when it comes to attracting millennial consumers. If you’re unaware, the term ‘millennials’ is used to describe people born between 1980 and 2000, and they are one of the most underinsured groups of individuals in society today.
The disconnection between millennials and insurance companies can be attributed to several factors.
First of all, many insurance companies haven’t yet figured out how to properly market their products and make themselves visible to millennials. The obsolescent marketing style of pushing out sales-driven copy and generic stock photos is no longer a viable marketing strategy.
There is a lot of room for insurance companies and agencies to start communicating how their products can benefit millennials and provide solutions to their unique problems. Helping is the new selling, so carriers are more likely to gain millennials’ eyes and ears if they start to address the specific questions that millennials are asking.
When it comes to marketing insurance products to millennials, its important to remember that they grew up in the technological age where much of life is lived on the internet and specifically on social media. So, instead of relying on traditional advertising mediums, such as radio and television, it is crucial that insurance companies expand their reach and engage more online.
A growth strategy underutilized by carriers is to promote to influencers in their internal sales force, who can amplify the company’s value proposition to all of their followers, including existing and potential consumers who are active on social media. Also, it is imperative to have systems in place for handling social replies and mentions in a timely manner, there is nothing worse than getting a reply to a question 3 days later.
Another good way to increase brand awareness among the younger demographics is to create and advertise useful content on social platforms and online communities that are popular among millennials.
Some Canadian insurance companies must take a look at their accessibility standards for their corporate website. At the very minimum, an insurance company needs to have an easily accessible website that meets the Web Content Accessibility Guidelines.
Usability is very important among younger internet users. A bad user experience can leave a company with more than just one annoyed website visitor if that visitor decides to broadcast their negative experience throughout the web.
It’s also important for insurance companies to remember that millennials use a wide variety of devices to connect to their services. These devices include smartphones, tablets, wearables and just about anything that can connect to the internet. Companies have to make sure that they have the ability reach customers through these different devices and operating systems.
Many insurance companies also miss the mark when it comes to attracting the millennial generation because they believe that millennials won’t make good customers or are not interested in any insurance products.
Yes, it’s true that many Canadians under the age 35 may not have dependants or big liabilities to cover yet but securing coverage while they are young and healthy could be a huge advantage. Insurers should see the potential to inspire millennials to get covered now to secure their future from financial calamity.
There are several insurance products that millennials are well-suited for. Let’s take a look at some of these products.
A significant number of millennials are currently working entry-level jobs in order to pay off their expenses such as student debt. Because they have little savings, getting sick and having to pay out-of-pocket for medical expenses not covered under provincial plans could be financially devastating. Having personal or group health insurance is great way for younger people to have a safety net in case they are faced with tremendous medical costs.
Loss of income if the single biggest risk for high wage earners. Getting a disability insurance policy is a very good idea for young individuals just stepping into a self-employed role. Many entry-level jobs for smaller companies or start-ups won’t provide any group disability insurance for employees in case they suffer an injury or illness that renders them incapable of working. Because of this, having individual disability insurance can safeguard millennials who become unable to work and earn any income due to a long-term disability.
Many millennials don’t have mortgages to insure, family to cover or final expenses to worry about yet but that doesn’t mean they still won’t benefit from securing coverage for those needs now. There have been many cases of relatively healthy young people being diagnosed with non-life threatening illnesses yet still becoming completely uninsurable because of it. It does happen and millennials need to be aware that future insurability is not guaranteed for anyone, unless you have a policy that offers that protection in place before disaster strikes.
These are just some of the insurance products that insurance companies should start marketing more towards millennials. There also needs to be more market research done by these companies in order to develop other products that are specifically aimed towards fulfilling the needs of the millennial generation.
At the end of the day, it’s important for insurance companies to realize the fact that the millennial generation is rapidly changing the life and health insurance industry. Companies that are interested in being successful in this new digital age will have to adapt to this change by shifting their corporate strategy to a more customer-centric approach that fully embraces the use of technology and help-based selling.
