'I forgot' top reason millennials miss insurance payments
Nearly a quarter of the cohort missed a payment in the past year, largely for reasons that could be remedied with automation.
During the past year, 20% of millennials missed an insurance payment, according to Invoice Cloud, with nearly a quarter reporting they had simply forgotten the bill was due. Postal delays and confusing payment processes were the second and third most cited reasons, respectively.
Among millennials facing financial hardships, more than half said they anticipate canceling an insurance policy in the coming year, according to Invoice Cloud.
While some in the demographic had lapsed payments due to financial hardships, Invoice Cloud found that most missed payments could have been avoided with automation. Additionally, nearly 90% of millennials said mobile and online payment options are important when deciding on an insurer. The majority of the cohort also prefers to interact with carriers virtually with mobile apps and email being the most popular options. Less than 1% said they prefer in-person interactions.
Millennial misconceptions persist
Invoice Cloud also found outdated stereotypes concerning the cohort abound with perceptions around the demographic being they are naive and entitled. Invoice Cloud pointed out the generation has lived through two financial crises, have families and cars and run businesses.
However, traditional carriers have overlooked the demographic, which has opened the door for digital native carriers to meet millennials through their preferred channels, Invoice Cloud reported, citing the rise of insurers such as Lemonade and others that are optimized for convenience and enhanced customer experiences.
“People still don’t really think of millennials as old enough to need insurance, which has left them wanting,” Julie Schieni, area vice president of insurance alliances at Invoice Cloud, said in a release. “This survey shows that millennials are not only an important market for insurance but that they’re pushing for digital transformation in the industry, which has traditionally lagged behind when it comes to technology advancement.”
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