How to Sell to the Most Underinsured Generation

Millennials are more than twice as likely to buy insurance online, and more than half prefer to work directly with insurance carriers instead of going through an agent, according to recent FUEL CYCLE research.

Of any generation, a 2015 Gallup survey found that millennials are the “least likely to be engaged and the most likely to be actively disengaged” with insurance companies, citing poor customer experience, especially online, as the prime reason.

“We’re now finding ourselves in a spot where the insurance purchasing process is more readily available than it ever has been,” says Nick Chadwick, senior researcher at FUEL CYCLE.

In order to cater to the generation that is fast replacing boomers as the largest consumer group, many agents are working within the traditional client-agent relationship but seeking out opportunities to “conduct more business online, as opposed to in-person meetings with their clients,” Chadwick explains. “That is the stuff that will allow them to stay current.”

Millennials are on the cusp of their prime insurance-buying years, which is why it is crucial that independent agents form an online presence to get their attention. Chadwick points out that the first thing most millennials do after meeting someone is Google your name. “They’re wanting to see what information they can find on you,” he explains.

A huge part of a strong online presence is engaging on social media and making regular posts, because social media “is a way that consumers are verifying you’re real and that you have credibility,” Chadwick says.

Meeting the expectations of millennials doesn’t have to be overwhelming. All agents need to do is let this generation know “they’re accessible and will respond to an inquiry within a day’s notice,” Chadwick says. “Allowing regular access for contacting the agent—through email, social media, text message or a business website—that’s an expectation.”

Burdened with greater student debt and stagnant wage growth, millennials need to know they can easily contact a trusted adviser who “understands these fears of spending and why they’re hesitant to purchase insurance,” Chadwick says.

Will Jones is IA assistant editor.