Millennials and Insurance: Understanding Tomorrow’s Mass Affluent Today

Report Summary

Millennials and Insurance: Understanding Tomorrow’s Mass Affluent Today

Robert McIsaac
Head of Life Insurance, Annuities, & Benefits

September 2016 - Millennials are now the largest age cohort in the United States. As they enter adulthood and assume responsibility for their own financial decisions, carriers have a great opportunity to design and distribute products that will appeal to this demographic. This is increasingly important for carriers, with the leading edge of the Millennials now 35 years old and the youngest Baby Boomer approaching 53. To put it into starker relief, 10K Boomers reach retirement eligibility every day in the US, while 9K babies are born to Millennial parents.

Thanks to advances in technology and the development of the Internet, Millennials’ researching behavior and purchasing preferences are markedly different from those of previous generations. This report discusses these differences in detail, using quotes from Millennials to illustrate their preferences and demonstrate how carriers can meet their needs.

Topics

  • How Millennials make decisions. What are the sources of information they consider, and what do they trust.
  • How Millennials prefer to shop. When, where, and how they make purchases.
  • Millennials’ coverage priorities. What do they want from their insurance.

Millennials google everything. All of the respondents reported using Google as a research tool. They approach search results with caution, but rely heavily on what they read online.

Millennials don’t want to be sold to. The survey group expressed a strong desire to guide their own purchasing process, and voiced deep skepticism of salespeople in general.

Millennials hate traditional channels. They hate getting mail, talking to CSRs, and meeting agents in person. Failure to provide Millennials an online resource for both information and interaction precludes an insurer from the opportunity of doing business.

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