Baby Boomers and Generation X are more attuned to purchase insurance than millennials and gen z, following the existing structure and processes. It could be due to different reasons, among which are - changes in family dynamics and economical factors.
These customer segments want a safety net for their jobs and a better way than to get insured. They expect insurance to take care of them at retirement.
Two Things. The reason for purchasing insurance remains unchanged, but life has changed. Firstly, millennials and gen Z are not really family embedded, and thus they might not take the prior insurance that was family-oriented. Secondly, the economy has become challenging.
According to campaign monitor, having several mouths to feed, loans to pay, and a career to build makes many people view insurance as an added expense in their lives. Thus, when marketing insurance to millennials, the insurer needs to take a different route than those used to market to baby boomers and generation x.
According to campaign monitor, Millennials and Gen Z spends more time on their devices, and what better way to reach them than using the same devices. These demography are likely to listen when you reach them via channels they already use and are familiar with. Also, using social media platforms for advertising is a great way to reach them.
Insurance is seen as a necessary evil by these two demography - Millenials and GenZ. And the process is buying an insurance policy is still complicated (getting better, though!). The millennial and GenZ wants a process without friction at the point of purchase. With a seamless process, they are more likely not to abandon the cart.
According to Denise Garth, the Millennial and GenZ demography pays attention to companies misconducts and failures. They are activists - interested and fighting for equal rights and climate change. They want to know if you are a responsible company. Social media has made it super easy as information is easily shared, passed and judged.
GenZ and millennials are likely to purchase insurance from a renowned company they already have a relationship with - by way of business or connection. Due to information available on the internet, they can compare policies from the different insurers - from pricing to the character of the premium. If your clauses are too ambiguous to understand, they are likely to withdraw.
[INSURANCE WEBINAR] Getting Insurance To Younger Customers
With the effect of the pandemic, life has taken a different turn, and the economy has become inflated. Insurance is not their first choice. Insurance companies should incorporate a more affordable policy option. When considering selling insurance policies to these groups, take into cognizance times are hard. The cheaper the procedure, the easier the generation will interact with them according to Tian.
"You always have insurance on the go and people can pay in bits and they can curate their earnings putting in thought that their salaries don’t come as a go." - Wairimu Njoki.
Just like Netflix or Uber, where sharing is taking the lead over 'ownership', millennials and GenZ are more likely to pay for insurance policies as a group than individually. Insurance companies need to design insurance products that a group of people with common interests can contribute to.
It is undoubtedly that millennials and GenZ are different demography. They are more aware of loopholes and clauses that would undermine them in contracting insurance.
"Can the insurance policy not be about cost alone, say $10 for Henry and $10 for Wairimu, but can it be about Henry’s behavioural pattern." - Henry Mascot
The future of insurance distribution is embedded.
Embedded insurance is a seamless way to distribute insurance services, delivering value to the market for the benefit of all its stakeholders.
Introducing Curacel Grow. Curacel Grow is an insurance gateway, enabling embedded insurance to protect customers of digital companies, platforms and marketplaces owners- neobanks, ecommerce, logistics, payment, loan, travels, and any African company with a platform and customers they love.
Curacel Grow is an insurance distribution platform with seamless end-to-end insurance integration capability. Our award-winning AI-powered claims submission, fraud detection, and faster payment system enable the insurer and platforms, profitably do business.
As an insurance company, embedded distribution holds a hugely profitable opportunity with the potential to create new revenue streams and lower distribution costs by focusing more on the mid-market.
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Learn more about Curacel Grow.
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