Generation Y customers are demanding more from their insurers when it comes to speed and ease of communication, but the industry needs to be wary of pushing out tech for tech’s sake, says an insurance MD.
Millennials, or Generation Y – broadly defined as those born between the early-1980s and the late 1990s – are considered ‘digital natives’: meaning they were born or brought up during the age of digital technology.
As a result, technology is a requirement for them when it comes to interacting with companies and service providers, says Nikolai Kröger, senior partner and MD at JuraSolutions. And when it comes to insurance, they want an easy process and for claims to be settled – fast.
“This generation requires instant communication, and that goes for everything, including the settlement of claims. Especially with this generation, they are not going to accept days or weeks passing while a claim is being evaluated,” Kröger said at the Uniglobal annual claims management conference.
But while Gen Y consumers expect their service providers to utilize technology in order to provide a smooth customer experience, it looks as though the answer isn’t to rush straight into developing apps or additional services.
Pointing to a study conducted by the Hamburg School of Business and Administration, Kröger said that while around 90% of Generation Y agree that insurers should provide ‘fast help’ in the event of a claim, they are not necessarily interested in receiving added support from an insurer. When it comes to the use of digital applications, the majority said that any application would need to provide some kind of additional benefit to be useful.
“Claims apps? They have to offer something more than just to file claims. Who would download an app just in case of having an accident, maybe, in a few years? Hardly anyone would,” Kröger said.
“The likelihood of someone downloading an app at the scene of an accident to file a claim is quite low. In reality, as soon as there is an added value to these digital applications, they are found more useful.”
The requirements of “impatient” digital natives as consumers are markedly different from their predecessor generation, added Kröger, and, as a result, insurers need to pay attention – or miss out.
“It’s important to look at this generation as customers,” he said. “Those that are not looking at this age group, looking at their requirements, looking at their specifics, are certain to miss the future.”
Remember that all these issues will be coming under the spotlight when the foremost industry experts descend on Toronto on April 24 for the Millennials in Insurance Conference
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