A new Liberty Mutual Insurance and Safeco Insurance research study shows that millennial insurance consumers’ views of insurance are largely aligned with older generations, dispelling many myths about this generation and presenting a huge opportunity for the independent agent channel.
While there is a widely held assumption that younger buyers always shop online and only care about price, our research shows that millennials are not more price-focused than previous generations and that they want the ease, choice and advice that IAs provide.
“Millennials are now the largest generation of adults in the U.S., and this generation is heading into their peak earning years, starting families and buying homes,” said Tyler Asher, President, Independent Agent Distribution, Liberty Mutual Business Lines and Safeco Insurance. “We at Liberty Mutual and Safeco Insurance want to help IAs transform their agencies to meet the needs of millennial customers and win in a digital-first world.”
Our research team conducted a survey among 2,860 consumers – roughly 1,600 millennials, 600 Gen-Xers and 600 baby boomers – to learn about the differences in attitudes toward insurance, what influences millennial purchasing decisions, and how IAs can attract younger customers to compete with direct-to-consumer carriers.
The millennial insurance customer research builds off our original Agent for the Future™ survey, where we found that 55 percent of agents said the rise of the millennial consumer segment would have a major effect on their agency by 2020.
Here are a few key findings from our new research:
Millennials care about more than just price
Millennials are not more price-sensitive than older generations. When it comes to purchasing insurance, only 31 percent said they wanted the cheapest price, even if it means a basic policy.
Millennials want you to help them become informed consumers
Millennials want to be informed consumers, and 53 percent said they need to know all the details of their policy. Of those who worked with an agent, 80 percent said they want their agent to help them understand insurance
Millennials want to work with seasoned professionals
Only 9 percent of millennials want their agent to be close to their age. When asked to describe their ideal agent, they said they want to work with someone who inspires trust (50 percent), is a seasoned insurance professional (49 percent), and makes a point to get to know them (29 percent).
Millennials are loyal customers
While millennials are more likely than older generations to shop for insurance online, more than half bought insurance through an exclusive or independent agent, and 81 percent plan to use their current agent again.
For additional insights, please visit www.agentforthefuture.com/millennials-and-insurance/