Millennial myths: What agents and brokers need to know
Millennial purchasing behavior is more like older generations than you may think.
Millennials have been accused of “killing” marriages, golf and homeownership. They’ve even been blamed for the demise of the napkin.
But one thing millennials have not messed up — to the surprise of many — is insurance.
According to a recent study from Liberty Mutual and Safeco Insurance, millennial insurance consumers align more closely with older generations. With more than 73 million millennials in the U.S. in 2019, this consumer group can present a massive opportunity for independent agents and brokers.
Myths debunked
The study, which surveyed approximately 2,860 consumers, including roughly 1,600 millennials, 600 Gen-Xers and 600 baby boomers, sought to learn about the differences in attitudes toward insurance, what influences millennial purchasing decisions, and how independent agents can attract younger customers to compete with direct-to-consumer carriers.
The widely-held assumption that younger consumers prefer online transactions and care only about price tags contradicts the study’s findings, which states that millennials are not more price-focused than other generations, and they want the ease, choice and advice that independent agents can provide.
While millennials are more likely than older generations to shop for insurance online, more than half purchased their policy through an independent agent.
“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,” Tyler Asher, president, independent agent distribution with Liberty Mutual Business Lines and Safeco Insurance, said in a press release. “We at Liberty Mutual and Safeco Insurance want to help [independent agents] transform their agencies to meet the needs of millennial customers and win in a digital-first world.”
The study’s key findings
- Price is just a number: When purchasing insurance, only 31% of millennials said they wanted the cheapest price, even if means getting a bare-bones policy.
- Millennials want information: They want to know what they’re getting in their policies; 53% said they need to know all the details. Of the millennials who worked with an agent, 80% said they want their agents help in understanding their insurance, including coverage and how it works; what to expect if they have a claim; the unique features of their policy; and how to manage their policy online.
- They want expertise: Fifty percent of millennials described their ideal agent as someone who inspires trust. Another 49% said their ideal agent is a seasoned professional, while 29% prefer working with an agent who makes it a point to get to know them. Interestingly, just 9% of millennials stated they want their agent to be close to their age.
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