This year, so-called millennials are projected to become the largest generation in the workplace. And while conventional wisdom suggests this demographic has no interest in working face-to-face with a professional to satisfy their insurance needs, results of a new survey from software developer Applied Systems advise otherwise.
The agency software developer asked 1,000 consumers between the ages of 18 and 34 about their shopping and purchasing decisions on basic property/casualty insurance policies, including auto and homeowners’ insurance.
More than 90 per cent of respondents carried auto insurance, and of those who had a policy, 35 per cent completed their purchase online. What may come as a surprise to some agents, however, is the fact that another 37 per cent reported buying auto insurance in person.
Michael Howe, senior vice president of product management with Applied Systems, says the data is encouraging for independent agents who often write off the millennial consumer.
“The myth says that (millennials) want to do everything online always—that’s just not true,” said Howe. “They definitely want to talk to a human, it’s just that they also have a strong preference for different platforms at different points in the shopping and purchasing cycle.”
A full 50 per cent of survey respondents said they made their buying decisions by referral, including 27 per cent who used online search engines to research different insurance companies. Another 20 per cent were guided by advertisements, and 13 per cent consulted online reviews from sites like Yelp or Angie’s list before making their final decisions.
The message to independents, then, is to ensure a strong online presence so that when millennials begin to investigate their options, they conclude by making their purchase with an agent.
“A multi-channel presence is obviously important,” said Howe. “It’s not an ‘or’ question, it’s an ‘and’ question.”
