Millennials account for nearly a quarter of the US population – about 77 million. A generation of that size is sure to have an influence on a variety of industries including insurance. Millennials are generally marked by increased use and familiarity with communication, media, and digital technologies. A recent study conducted by Microsoft concluded that:
- 65% of millennials start interactions with a brand or organization online.
- 64% of them believe that social media is one of the most effective channels for reaching a brand.
Below are areas contributing to the changing landscape in the industry and why:
Social Media Marketing
Social media can help you, the agent, to connect with your clients and community in a very impactful way, positioning yourself and your agency’s status in the insurance field. Make an impact by researching and writing on industry-related topics that interest your clients. Be inspirational and educational in your posts. Make sure social media is something you can manage in-house, and select the channels that make the most sense for your agency, whether that’s LinkedIn, Twitter, Facebook, or Instagram. Try test posts on each channel to determine which provides the best new business leads.
Thanks to data mining and social media, insurance companies are starting to target their marketing directly to specific consumers. The ability to tailor their coverage and policies to the right audience can be invaluable to insurance companies. The data-driven, computer savvy, innovative mentality commonly attributed to millennials makes them prime candidates to help carriers create insurance products that truly speak to the right audience.
Change in Demographics
Young business owners are driving a huge digital shift in the business insurance industry. By 2020, over 60% of small businesses in the U.S. will be owned by Millennials and Gen-Xers (Who range in the age range from about 20 to 45). With this projection in mind, it’s clear that agents who wish to thrive in the future of the business insurance industry would be wise to consider adapting to the changing environment as the industry continues to innovate in an increasingly tech-filled world.
Many insurance carriers now offer most of their services through mobile apps. Insurance agents can utilize these apps to give clients the ability to file claims, schedule inspections, track their claims process, direct message an agent with questions, or even submit videos for appraisals.
Now we just need to encourage more millennials to buy and maintain renters, homeowners, auto, health, life, and business insurance policies where they apply. The Equity Movement surveyed Millennials in Cleveland, Ohio, Texas, and Las Vegas, NV to find that only 46% were actually carrying coverage in the appropriate categories. But all of them had smartphone Insurance, so we still have work to do.