As buyers and sellers in the insurance industry, Gen Y challenges agents and brokers, as millennials have their own attitudes and preferences toward digital technology.

Most notably, millennials turn to devices and social networks to communicate their opinions about brands and services. Forty-four percent do this by text message, 16% by blogging, 38% on social media and 38% on instant messaging, according to figures from Goldman Sachs.

Agents must offer multichannel service and product options to Gen Y, as they are attracted to insurance companies that provide a client-centric experience. A strong presence through digital channels and social media establishes an agency as a source for education, thought leadership and product information.

Of 1,000 millennials surveyed by Applied Systems, 91% had some form of P&C insurance coverage, of which 89% have auto insurance, 55% have homeowners and 42% have renters' insurance. An online presence is necessary to target this generation for personal lines sales, but because Gen Y splits auto insurance purchases among face-to-face, online and telephone sales, the role of the agent as a trusted advisor remains critically important.

Gen Y is social by nature and relies heavily on referrals in their buying decisions. More than half of the millennials surveyed asked family and friends for insurance advice, 27% use an online search engine and 13% reviewed social media sites such as Yelp.