In 2016, millennials finally overtook baby boomers as America’s largest generation. According to the latest estimates, there are 75.4 million millennials and 74.9 million boomers.
If you’re a business owner, this is good news, because millennials are more financially empowered than the generations before them. And boy, don’t they love spending money!
But if you work in the insurance industry, this is bad news. Insurance is the one thing millennials don’t want to buy. In fact, about 11 percent of all millennials don’t have any form of insurance, and 65 percent don’t have life insurance.
As an insurance marketer, how do you get this generation to buy?
In this article, we’re revealing why millennials don’t trust insurance marketing, and what you can to get them hooked up. Read on.
The Young Invincibles
When millennials are not being referred to as Generation Y, they are being referred to as the “Young Invincibles”
Rightfully so, millennials have a strong sense of fearlessness. Unlike their parents, they’re open to taking risks without giving much thought to the consequences. They are invincible, after all.
Unfortunately, this is the primary reason millennial resist the need to buy insurance unless it’s absolutely necessary. For instance, a millennial would by a brand new car, only to insure it with the basic insurance required by law. Many won’t bother to purchase comprehensive insurance, because, well, accidents don’t happen to invincibles!
The same can be said for health insurance.
Why spend precious dollars to purchase health insurance while you can work out and eat healthy, effectively eliminating any chance of getting ill? They would rather spend time and money finding ways to prevent a certain disease than buy insurance cover for the disease! Those are millennials for you!
Money Is Seemingly an Issue
We said millennials are the most financially empowered generation, but it’s not that straightforward.
Look, millennials earn 20 percent less than boomers did at the same stage in life. As such, boomers undoubtedly have more cash in the bank. The difference comes in their attitude towards spending.
Millennials are quick to buy items that define their image (think clothes, tech devices), which means marketers and business love them. But when it comes to items (like insurance) that have nothing to do with image, they start getting concerned they can’t afford. Their budgets are already stretched out on unnecessary expenses, so insurance can’t fit in.
During Tough Times, Go Back to Daddy and Mommy
Many millennials have at least one of their parents alive and healthy. What’s more, these parents (the boomers) are always willing to financially support their children.
According to a New York Times study, for instance, about 40 percent of young millennials get about $3,000 annually from their parents to cover living expenses like rent.
It’s this kind of parental support that keeps millennials to resist insurance marketing.
If the “invincible” bubble is busted, and the gym work and healthy eating somehow fail to prevent a disease, they can always go back to their parents for help with healthcare expenses.
What Insurance Marketers Can Do to Woo Millennials
Evidently, marketing insurance products to millennials is a tough ask, but it can be done. You just need to understand their consumption habits.
Here is a complete guide.
Millennials Get Their Information Online
There are tons of data for millennials’ love for the internet. For instance:
- Millennials use the internet more than any other generation
- 74 percent of millennials compare prices online
- 73 percent of millennials shop online
- 44 percent of millennials are more likely to trust an expert
- A whopping 247 percent are likely to be influenced by social influencers.
The gist of this is; insurance marketing for millennials delivers betters results when it’s web-based.
Research your specific target market among the millennials, understand their preferences, then craft a marketing strategy.
For example, is your insurance product geared at millennials who earn more than $100,000 annually, and live in certain cities? If this is the case, you may want invest in a Facebook marketing strategy because of its precise geo-targeting.
Millennials also love video content, so you may want to include lots of videos in your digital marketing strategy. Remember, the cast in the videos matters. Get an insurance expert to explain the importance of getting insured, and explain the various products you offer.
Set up social pages and engage with them on a regular basis. Your end game is to expose as much insurance information as possible on the platforms they spend most of their time.
Also, offer online tools like the one offered on this site, which millennials can use to select the insurance products they want and get quotes.
Avoid Using Local Agents
In the insurance industry, insurance agents are the professionals who keep the wheels turning. They go all out and find clients to buy your policies, keeping the company in business.
While deploying local agents may work for the older generations, it won’t work well with millennials.
It all comes down to first impression and millennials liking for “subject matter experts.” They obviously know local insurance agents are mere salespeople whose primary interest is to make a sale.
What millennials want is to deal with an insurance expert in your company. Somebody they can trust to offer authoritative information.
As such, once your online insurance marketing strategy starts yielding calls from millennials, make sure you’re directing them to these experts. These could be insurance consultants working at the company. People whose primary goals is to educate, not sell.
Family Recommendations Mean a Lot to Millennials
When it dawns on millennials that indeed purchasing insurance is a wise and necessary thing to do, they often go to their families for recommendations.
They are more likely to purchase insurance from the same company that insurance their parents, siblings or close friends.
How does this influence your insurance marketing?
There is no harm giving incentivizing your boomer clients to recommend the company to their kids, nephews, and nieces! Perhaps you can offer a discount or free months of coverage to boomers who bring in millennial clients.
Insurance Marketing to Millennials Simplified
To this end, we trust you have the information you need to design an insurance marketing strategy that will attract millennials.
As this generation continues to grow up and embrace the harsh realities of life, more and more will start grabbing up insurance policies. Your job is to ensure your insurance company has a strong online presence to capitalize on this inevitable boom.
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