As digital pioneers, millennials are redefining the dynamics of the insurance industry, both as policyholders and as professionals in the field. This influential group, comprised of individuals born from 1981 to 1996 and ranging in ages from 25 to 40, is currently the largest living adult generation in the U.S.
According to estimates by the U.S. Census Bureau, as of July 2019, the millennial population stood at 72.1 million. Projections suggest a further increase, pushing the number to 74.9 million by 2033 due to immigration. These figures underscore the significant millennial presence in the population.
With millennials constituting nearly a quarter of the adult population, their impact in the insurance realm is significant. They are entrepreneurs, parents, vehicle owners, medical patients, and many work within the insurance industry. The unique consumption habits of millennials present an exciting opportunity for the insurance industry to innovate the way insurance is packaged and distributed.
Millennial Influence in the Insurance Market
It's clear - millennials are now engaged insurance buyers, seeking both personal and commercial policies. Their approach to buying insurance and the policies they select are reshaping traditional industry practices.
Reinventing Policies for a New Breed of Consumers
Millennials, though not newcomers to the consumer market, have unique needs and preferences compared to older generations. Most millennials have been engaged in the workforce for a few years now. They tend to be more educated but have fewer fixed assets, seeking insurance policies that cater to their specific circumstances.
For instance, while 80 percent of millennials own cars, only 45 percent are homeowners. As such, auto insurance is prevalent among this demographic, whereas homeowner insurance purchases are less frequent. Moreover, a notable number of millennials who do own homes do not perceive the necessity for homeowners insurance.
The lifestyle choices of millennials dictate their insurance needs and the kind of coverage they seek. A closer look at their purchasing preferences reveals under-insured areas and opportunities to educate millennials on the importance of certain policies they often forgo.
Amplifying Online Visibility
While policy price does play a role in millennials' buying decisions, it isn't the sole factor they consider. Known as "digital natives," millennials are prone to leveraging social media and websites for their purchasing decisions. Studies show that 55 percent of millennials use search engines for product information, and they are twice as likely to purchase insurance online compared to the baby boomer generation.
By enhancing their online presence, insurance companies can direct the discourse regarding which insurance policies best align with millennial needs.
As the owner of a web design company, Agent Quote, I can attest to the power of a robust online presence. Our services help insurance agents amplify their digital footprint, enabling them to connect effectively with millennial customers. In the era of digital-first interactions, a well-designed, user-friendly website isn't just a good idea—it's a business imperative. Contact us at Agent Quote today to learn how we can help you resonate with the millennial market.