The industry-wide problem of millennials’ hesitance in purchasing life insurance is easily solvable: you just need to understand them better.
Millennials aren’t buying life insurance. According to IBM, young millennials are purchasing smaller and fewer term-life policies and annuities, with half of those surveyed in a recent study not having a life policy. Some have other priorities: over 80% say they are more concerned with immediate financial commitments, like paying rent, mortgages, or raising children. However, the IBM study says that most obstacles are actually industry-related: 46% are confused around policy specifics, while a further 23% are wary of the effort involved in getting a policy: the paperwork, doctor’s appointments, and time.
It is clear that the life insurance industry needs to adapt to cater to a new generation of investors and applicants: the way they have grown up is fundamentally different to the previous generation. They expect things to cater to them, rather than the other way around. From being digital natives used to data-driven recommendations that tailor dashboards and data feeds to their browsing behavior to being able to personalize their online experience, millennials have a very different outlook on products.
Millennials need more guidance
In the study from IBM, 70% said they’d be likely or very likely to purchase life insurance if they better understood offerings and benefits. A number of respondents further cited that incorporating personalized recommendations and gamification could help them to determine the right coverage. In addition, millennials are increasingly aware of the power their financial decisions have on global issues such as climate change, and are the driving factor behind ESG investments. Many are concerned with the idea of ethical consumption. Therefore, they may be incentivized to purchase life insurance policies that also allow them to pursue sustainable investing or that enables them to curate their portfolios. As more millennials continue to be motivated by the global COVID-19 pandemic to purchase life insurance, now is the best time to ensure that you have the right infrastructure to support such different needs and cater to a new generation.
Go digital with Privé Technologies
Privé Technologies recognizes this gap in the market and has built a fully-digital solution: Privé FLEX, which is designed to address these concerns. From being able to answer simple questionnaires that would take them through the process of risk profiling to being able to focus their portfolios on investment themes that really matter to them, clients are guided through the life insurance process step by step. The final portfolio perfectly captures all their wants and needs, and is even able to be manually edited and compared, with fully transparent analytics that give clients the confidence and knowledge of their portfolio’s performance.
Interested in learning more about Privé’s solutions for insurers? Get in touch with us today at [email protected] and schedule a demo today!