What the millennials want from general insurance
The millennials or individuals in the 20s-30s are the major drivers of Indian businesses today. By 2021, India is set to be the youngest country with 64% of the Indian population in the age bracket of 20-35.
Listed below are few points to help understand the present scene when it comes to the awareness about insurance amongst the masses, especially the young millennials.
Current Scenario
- Health
As per 'Understanding Lifestyle and Attitude towards Health of Millennial' survey by ICICI Lombard, only 5% of the high spending millennial group's expenditure were towards health and medical. Moreover, 46% of millennials still purchased insurance for tax benefits. Although majority of them believed in its importance, their understanding about the personal benefits of a health insurance policy was limited.
- Travel
ICICI Lombard and GFK survey on awareness of travel insurance among millennials showed that 90% were aware of travel insurance of which only 40% bought the cover.
- Motor Insurance
With regards to motor insurance, of the 1,073 vehicle owners surveyed across leading cities, the findings were as follows:
- Car - 76% people were aware of own damage and third party cover, only 41% availed it.
- Bike - 80% people were aware of own damage and third party cover, only 38% availed it.
Another international study conducted by Gallup found that millennials are the least engaged group when it comes to insurance. It also finds that, they are most likely to choose the insurer of their families' preference. Furthermore, their data shows that only 31% of the millennials appear to be "fully engaged" to a primary insurer.
Why Are Millennials Not Buying General Insurance?
- Agents
Millennials are tech savvy and prefer direct mode of buying and managing insurance. They believe an insurance agent would take more effort and cost more.
- Prices
It is common belief amongst the young buyers, especially the ones in their 20s, that insurance is expensive. They consider that 10% of their income towards their policies would limit them from other life goals.
- Customer Service
Millennials prefer a different way of engaging with the insurers than their parents. They seek insurers who are not old school and willing to move with the changes of the Tech age.
How Are Insurers Changing To Improve Awareness?
Building a value-based relationship that is catered towards the unique requirements of millennials is the key. This can be done by considering the following dynamics involved in the relationship between the insurer and the buyer.
- Family First
Insurers can build products and promote them such that they bring out the family aspect in their marketing approach.
- Going Digital
Millennials are great multi-taskers. They want quick fix, great features that resonate and make insurance convenient. Therefore, insurers are increasingly going digital - online buying platforms, apps, etc. make transactions quick and easy.
- Creating Customer-friendly Experience
Insurance is perceived to be complex. Gradually, be offering end-to-end assistance engaging customers through valuable knowledge resources about policies, this perception is changing.
- Personalised Services
Leveraging customer information to provide customised services by understanding their preferences, habits, lifestyle, etc. helps to lend a personal touch. This can be done by personal email marketing, offering birthday messages, curating content to categories of users, etc.
The Gen Y is strikingly different from its predecessors in their approach towards work and life. What changed? Technologies, easy access to Internet and information, increase in standard of living have made them unique. Therefore, insurers need to customise how they convey their products to them.