The Millennial Generation has quickly became the largest generation in the U.S. – and also the biggest potential customer base for independent insurance agencies. Millennials (anyone born between the early 1980s to the early 2000s) need all kinds of insurance, ranging from homeowners and auto policies to boat and umbrella policies. Those that have already or are about to start businesses also are in need of commercial insurance policies, such as general liability, cyber liability, and workers comp.
Millennials are Looking for Insurance Agencies
Most importantly, most Millennials don’t have an existing relationship with an insurance agency to which they feel any particularly loyalty. They may already have insurance policies with their parents agencies, but many Millennials will switch providers if they find an agency that provides what they want. Like the generations that came before them, Millennials are looking for quality coverage, affordable prices, and excellent service. They just expect to receive these things through a different channel than previous generations used. They want to find them online.
Millennials Want the Security that Insurance Coverages Afford
Just like everyone else, Millennials want the security that various insurance policies provide. They want to feel safe, and insurance can play an important role in a person’s financial security. They don’t want excess coverages that aren’t applicable to their particular situation, but they want enough insurance to fully protect should a disaster ever happen to them.
Some Millennials may not carry as many insurance policies as people in older generations, but this isn’t for lack of interest in insurance. In some cases, Millennials simply don’t have as many assets to insure yet, so they don’t need as many policies. In other cases, the assets that Millennials have aren’t properly insured not because they don’t want to protect them -- but because they aren’t aware of the potential perils they face. It’s not a lack of desire, but a lack of knowledge that causes some Millennials to be under-insured.
For independent insurance agencies, Millennials’ needs and knowledge pose two huge opportunities.
First, independent agencies are able to provide customized insurance solutions by drawing policies from the array of carriers they work with. Second, independent agencies can produce informative content that answers Millennials questions’. Agencies that publish helpful blog posts, newsletters, and social media updates not only establish themselves as authorities in the insurance industry, but also help Millennials understand what insurance coverages they need, why they need them, and offer them a place to purchase this coverage directly.
Millennials Want Protection Without Overpaying
No one wants to overpay for insurance. Price is especially important to those in the Millennial Generation -- a generation that’s saddled with student loans and sometimes underemployed. Millennials want the insurance coverages they need without paying more than they have to, which means both not paying for coverage they don’t want and getting the best price possible on the coverages they do want.
Independent agencies are uniquely positioned to help Millennials find the best rates on the coverages they need. Like independent agencies, direct writers can also publish content that’s informative. Direct writers can’t, however, help Millennials compare quotes from every insurer that will offer them a policy. Only independent agents can help Millennials look at coverages and premiums for policies from different insurers from an unbiased point of view.
Millennials Want Convenient, Efficient Communication
The way Millennials differ from other generations is in how they want to find coverages, have their questions answered and compare policies. While some will still pick up a phone to call an agent, and a few may even wander into an agency's office, almost all Millennials want the convenience and efficiency that online communication affords.
Millennials are online daily, usually for many hours a day, and via multiple devices. They’re accustomed to the instant and constant communication that email, texting, and social media afford, and they want the same from their insurance agency. They want to be able to reach an agency or agent online, where it’s most convenient and efficient for them to contact someone.
To reach Millennials, independent agencies need to adapt to today’s online modes of communications. They need user-friendly websites that provide clear, concise answers and offer easy ways to contact agents.
Reach a Millennial, and Have a Customer for Life
Reaching Millennials may require an investment in an agency's online presence, but the dividends are well worth the initial effort. Independent insurance agencies that can effectively reach Millennials won’t just get new customers for a few days, weeks, months or even years. Agencies that help Millennials find coverages they need at prices they can afford and via a channel they’re used to using will help attract young customers for life.