Selling insurance is always a push and in case of millennials, doesn't get any easier as millenials tend to be exceedingly skeptical of buying products or services with jaded or bad customer experiences. The insurance business needs to attract, sell and wow the millennials in order to sell its products.
Millennials, aged 17 to 35, are estimated to comprise about three fourth of the global workforce by 2025. In the US, this section of the population controls close to $200 billion in annual spending and hence their importance as a customer base cannot be undermined.
There is a major ideological shift as well. Millennials value experiences and quality of life more than owning assets and hence, for them to see merit in insurance, these products must impact an individual’s ability to command the experiences and quality of life they desire.
The new breed of Insurtech companies are catering to these digital natives with a number of interesting products and services. In the US, Insurtechs like Tomorrow are asking millennials to face their mortalities. Tomorrow wants to help Americans set up wills and trusts, for free, and then recommend term life insurance policies that fit their needs. The Tomorrow app makes available products from nine different carriers. The app enables users to identify key assets and photograph personal valuables within minutes. Family members or friends named as guardians are invited to agree to the role via Tomorrow-generated text or email. When the process is complete, Tomorrow generates a will that can be exported, signed, and notarized.
Haven life offers instant-approval term life insurance for qualified applicants. Instead of reviewing a blood test report and conducting an in-person evaluation, the company can search prescription databases and driving records, among other data sources, to evaluate an individual’s health.
It is common knowledge that millennials prefer brands that contribute to a greater purpose and make an effort to turn the world into a better place. Lemonade, an Insurtech start-up works to fulfil this. Their business model involves donating unclaimed funds to charities of the policyholder's choice. Their goal is to ultimately rebrand the insurance industry as convenient and beneficial.
Back in India, a Gurgaon based Insurtech start-up called Toffee is offering insurance policies customized to millennials’ lifestyle-related risks. They have some exciting, offbeat products like bicycle insurance, sports insurance and even Dengue insurance. Products in the pipeline include bite-sized insurance policies like a Globetrotter Toffee for those that love to travel, a Stay Fit Toffee for those that believe in fitness, and Backpackers Toffee for domestic travel.
With millennials, it is increasingly becoming clear that just competitive pricing and quality coverage won’t help hit the mark. Throwing in the lifestyle component might just do the trick.
Credits : Akhil Handa, K Venketeswarlu, Aparna Anand