Millennials are currently the largest generation in North America. With more than 72 million in force, millennials hold significant buying power, which has prompted companies across industries to break from traditional business processes to modernize practices. This has been especially true in the insurance industry. "These insurance disruptors understand something fundamental about the millennial generation that has enabled them to separate from the pack: no matter the service or product, Millennials expect technology-driven customer experiences," said online payment solutions provider Invoice Cloud in its report, "Keeping up with Millennial Policyholders." In January 2021, Invoice Cloud surveyed more than 1,700 millennial policyholders (born between 1981 and 1996) about their existing and future policy needs, payment preferences, and what they expect from an insurance payment experience. From those results, Invoice Cloud gleaned five areas insurance companies must focus on to keep up with this generation and optimize the customer experience, highlighted in the slideshow above. |

Survey takeaways

Each year, millennials spend trillions of dollars on goods and services, presenting wide opportunities for insurance professionals to cross-sell and meet the new needs of consumers as they progress through life. According to the survey, the most common policy among millennials is personal auto insurance (78%). And almost half of the respondents said they plan to purchase new (or their first) homeowners, auto and health insurance policies within the next five years.

Source: "Keeping up with Millennial Policyholders," Invoice Cloud.

The survey also revealed that 41% of the millennials sampled switched insurance carriers within the past six to 12 months. Price was the primary factor motivating millennials to switch, with coverage of policy options and customer experience following as the second and third most common motivators, respectively.

Source: "Keeping up with Millennial Policyholders," Invoice Cloud.

And unfortunately for insurers, 50% of millennial policyholders said they are "very likely" or "somewhat likely" to look for a new insurance carrier in the next 12 months. However, enhancing technology offerings to meet millennials' preferred means of communicating and interacting with their insurance companies could be the key to retaining consumers of this generation. "Clearly, the key to meeting millennial expectations as an insurer is utilizing technology to improve the policyholder experience, particularly with seamless digital payment offerings," said Invoice Cloud in the report. "But today's innovative tech can serve another important function for millennials — keeping millennial payments on-time and consistent." For more insights on improving retention with this influential generation, join the complimentary webinar, "Seven Insights to Help P&C Insurers Attract and Retain Millennial Policyholders," on June 2 at 2 pm ET. Related: |

• Policyholders want more engagement but on their own terms
• How insurers can keep customers happy when moving online
• 15 most popular auto insurers for millennials