How to sell insurance to the mindset of the next 20 years
Millennials and Gen Z consumers will be the most influential market segment for the next few decades. Any insurance business that wants to survive needs to know how to appeal to and keep customers of these younger generations. How do they view insurance? What do they want? What are their key insurance purchasing motivations? Understanding the mindset of this this huge demographic will help you attract and retain these customers ― and build your businesses in new ways. Here is what you need to know.
Millennials are not kids anymore. They are entering the prime purchasing years of their life. Gen Zers are right behind them. By 2025, these two groups of adults born after 1980 are expected to comprise 75% of the global workforce. While not easily lumpable into a single group, they definitely have some characteristics, needs and purchasing styles that it’s important to understand.
No surprise ― they are digital natives
This goes without saying, but digging into what it actually means will help independent agents find ways to connect with and sell to this group. Their world has always been about technology, the Internet and social media. But this doesn’t mean they shy away from relationships or value human care any less. They like a mix of digital and human. In fact, while they may be more likely to buy insurance online, the majority of them still purchase through exclusive or independent agents.
That said, they do tend to find these agents through online engagement, so it is definitely vital to step up your social media content generation efforts. And nearly half of this group found their current agent through online reviews, so it’s important to know how to get customer testimonials.
They still appreciate the human touch!
The fact that they grew up in a digital world has generated a big misconception about younger consumers ― that they don’t have great social skills and are likely to avoid personal interaction in favor of digital interaction. Not. True. At. All.
Millennials and Gen Zers are all about relationships. Those who use independent insurance agents report high levels of satisfaction. 83% say they trust their agent, and 81% say they plan to use their current agent again. And that means renewals, great reviews and plenty of referrals.
If you can deliver them benefits, millennial and Gen Z clients will stick with you as their needs change and grow. They might not hesitate to switch their Internet provider or dump one messaging app or clothing brand for another, but they will be loyal to agents who take care of them.
They need your help understanding insurance
80% of customers in this age group want their insurance agents to help them understand insurance. This group is three times more likely to worry about what-if scenarios than older generations. That’s an interesting piece of information that independent agents can leverage!
Help them understand the details of their policy and how it will protect them in a worst-case scenario. You can really shine here as a risk management partner. Assuage their fears with your knowledge and ability to deliver the right coverage. Use simple video marketing to connect with them and establish yourself as a knowledgeable agent who cares enough to take the time to explain things.
They want policies tailored to fit them
Millennials don’t care exclusively about price. That’s a myth. Members of every generation list price as one of the key purchasing factors when buying insurance, but millennials are no more price-sensitive than baby boomers. What’s really important to them is having a sophisticated and personalized experience.
This is great news for you as an independent. You can be flexible and offer them what they need as their lives change over the years. Start by offering them renters insurance, for example, build the relationship, and eventually cover them for homeowners, liability and plenty of other kinds of insurance in the future.
Want to expand your offering as an independent agent? Become a MacNeill Agent. We’ve been offering independent agents access to diverse admitted and E&S offerings for over 75 years. Our top-rated and exclusive carriers help your clients protect their assets — even in the toughest-to-insure markets. We help agents get comfortable, giving them expert teams of underwriters/ producers and innovative tech tools that help them be successful with Admitted and E&S placements.