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Insurance policy sales will differ from client to client, as everyone needs individual needs. There are certain factors that an insurer must focus on before trying to attract a client. One of these main factors is the age of the client, as every generation will expect different things from their insurance.
A younger generation, such as Gen-Z, will expect a different experience from an older generation like Millennials. It’s very important to make sure that they have an adaptable approach so that they can cater to these different age groups and their preferences. This will allow them to benefit a wider range of clientele.
Generation-Z insurance
In the digital era, Gen-Z is playing a very important role in the insurance industry. Born between 1997 and 2012, these young adults have altered how insurers assess different aspects of the industry, such as risks and design policies. Communication is key in the modern era and the insurance industry has received an overhaul during the mobile phone revolution. Devices such as the iPhone have led to a whole generation of people being more comfortable with expressing themselves when online compared to in person.
Insurers have had to learn and understand that mobile technology has become inseparable from Gen-Z, which has increased its usage throughout the industry. About 43% of Gen-Z don’t feel confident in their insurance knowledge, so providing as much information about insurance policies to the younger generation should make them more attracted to your business.
Millennial insurance
In general, millennials want their insurance to be convenient, understandable, adaptable and budget-friendly. Insurance companies that can cater to these preferences are more likely to attract and retain millennial clientele.
Born between 1981 and 1996, millennials should be well-versed with technology. Millennials have been immersed in technology for most of their adult lives, with mobile phones, websites, and email as daily tools. However, the insurance industry has been slower to adopt these innovations. As a result, millennials might still prefer a more traditional approach to insurance.
Customizable plans, authenticity, and simplicity are all things that will attract millennial clients to an insurance company. Promoting plans that can be tailored to individuals’ lifestyles will be a big selling point. This only improves if on-demand coverage and add-on features are available to the insurance approach.
Generation-X insurance
Born between 1965 and 1980, Gen-X has specific things that they expect from their insurance plans. Value, worksite benefits, flexibility and brand loyalty are all things that the older generation will look for in insurance. They likely would have used the same brands for a long period, as the generation is synonymous with loyalty. Therefore, insurance companies should look to build long relationships with clients.
Insurers can partner with employers, focus on clarity, offer unique tools, and market through trusted channels to target and appeal to Gen-X. Advertising through TV would likely attract more older clientele rather than the younger generation. They are also likely to not be very familiar with any advanced technology, so more traditional methods of insurance will be more beneficial.
Gen-X typically seeks insurance coverage for their families and assets, so life, home, and credit insurance are usually their go-to insurance types. Whereas younger generations are more likely to procure auto, travel and renter’s insurance.
Why does insurance change depending on generation?
Insurance needs and preferences vary by generation due to multiple factors. These include life priorities, economic conditions, and technological advancements. Additionally, cultural trends play a significant role. Let’s take a closer look at why each of these has impacted generational insurance.
Life priorities – Each generation is at a different point in their lives. Gen-X, nearing retirement, leans towards long-term care or asset-based insurance. Gen-Z, in their experimental phase, seeks a broader range of options.
Economic conditions – Risk and affordability are big factors when it comes to choosing insurance. Older generations will be more cautious with spending their money and will likely choose value-driven insurance options.
Technological advancements – New technologies are constantly emerging with Gen-Zers being the first to leap on these new technological trends. Those who grew up with the internet expect a smooth online experience for receiving quotes and managing policies. Insurance companies are likely to jump on these trends in the hopes of securing Gen-Z clientele.
Cultural Trends – There are different trends that each generation will prefer when it comes to their insurance. Millennials, for example, are now more likely to delay marriage and children so life insurance will now be less popular with them.
About the Author
Jack Morgan
Jack Morgan is a graduate from Cardiff University, where he earned his degree in Journalism. He possesses a strong interest in the world of finance, with a particular focus on accountancy, insurance, and the intricacies of the financial market. Beyond his academic pursuits, Jack is a passionate sports fan.
