With the growing costs of rent and living expenses alongside the slow growth to wages, sorting out insurance is not always top of the list for millennials. In this guest blog post, FirstHomeCoach share their insights on engaging the millennial generation with the world of finance, insurance and all things “adulting.”
They go by many names – Generation Y, The Boomerang Generation and, perhaps worst of all, Generation Me Me Me. Millennials have got a bad rep. They’re either overindulging on avocado toast or taking too many selfies for their own good. This generation is the most likely to be renting and least likely to be insuring on the basis that they don’t have enough stuff to protect.
They also make up the 28.6% of the adult population according to the Office for National Statistics. And if insurance companies don’t get to know this tech-savvy, socially conscious and sometimes self-centred generation, then they’re missing out on a large consumer market.
So, how exactly are insurance companies connecting to this generation as a unique consumer group in an increasingly digital world? We take a look at some of the factors to be considered and examples of forward-looking companies paving with way with the millennial crowd.
Adapting to a cultural shift
Let’s take a step back and have a look at the bigger picture. To get to know millennials, we have to get to know how this generation came to be. Millennials didn’t just wake up one day and decide to be millennial. Their traits are the result of growing up with new technologies at their fingertips within a wider context of political and economic instability, and a number of unprecedented global crises.
There have also been distinct changes to family demographics for this generation. These days the traditional picture of the family home life often used to market insurance products applies to a diminishing number of millennials. Less people are getting married and less people own a home, or even a car. So what’s the message when it comes to engaging millennials with the world of insurance?
Honesty (with a splash of humour) is the best policy
In a world of fake news, millennials strive for transparency and crave nothing less than an honest message that will cut through the noise. They are advice seekers and often ask the opinions of friends, family or online reviews before making a purchasing decision.
American insurance company Progressive use humour in their advertisements to engage with a millennial audience and poke fun at the world of “adulting” and the often cluelessness of millennials, whilst pointing towards their ‘easy guides to everything insurance.’ The character of Flo – an elder sibling-type persona – gives a helping hand to confused, oblivious or scared characters through the jargon-filled world of insurance, big life changes and new technologies.
Ridiculing the jargon and the millennial stereotype doesn’t undermine millennial’s confidence in the credibility of an insurance service. In fact, this generation of meme-lovers put their trust in services more when a genuine effort has been made to make information more accessible! Simple, inclusive and transparent messaging – with a sprinkle of humour – is all the reassurance they need to stay engaged.
Captivating the tech-savvy
On average, millennials spend 5 -10 hours a day consuming copious amounts of online content. Millennials expect ease of use, 24h support and an instant service. Think customer-centric companies such as Uber, Deliveroo and Amazon Prime. The stakes are higher and, we can all agree, a bog-standard website will no longer suffice. In order to capture the short attention span of the millennial, insurance companies have to create a complete brand experience at fingertip proximity!
Insurers need to meet millennials in places that they are already familiar with. And top of the list of these familiar places are social media platforms. In 2017 life insurance company Allianz launched a marketing campaign on Snapchat involving a number of videos based around the tagline “Let your Snaps disappear; not your loved ones”, an innovative solution (again, with a splash of dark humour) to communicate the need for life insurance to millennials.
App-based products such as Homelyfe are paving the way for a simpler and more accessible service tailored to the digital age. Not only can you purchase insurance but you can also manage all your insurance policies on the app. They recently partnered with FirstHomeCoach (us). Together we hope to give a helping hand to millennials by simplifying the process of buying and insuring homes for first-time buyers. You can also follow us both on social media to join the discussion.
Let’s talk money, money, money
Since 2015, the average wage in the UK has crept up a miniscule 7.5% whereas property values across major cities have climbed by an average of 14.5%. With the cost of living many millennials are only just making ends meet and some feel they don’t own enough stuff to need insurance. And perhaps they’re right, but this won’t be the case forever.
Iona Bain, founder of the Young Money Blog, the first and only British blog dedicated to young people’s finances states how “it’s all too easy to dismiss [millennials] my generation as too broke, apathetic or uneducated to be a viable customer base, but that would be wrong and unfair.” She goes on to say that “clever technology, sympathetic products/services and better representation within the industry can be the catalyst for more financial inclusion and better relationships with the consumers (and investors) of tomorrow.”
Insurers need to be encouraging this generation to take an active role in their relationship with finances. Fostering communities focussed on collaborative consumption that make access to the right information easy is one way to give them the tools they need. When the time comes for millennials to make the bigger purchases and take out insurance they will be equipped to make the right decision for them. The core principle of insurance is to provide a safety net for all that lies ahead anyway!
You can now sign up to test FirstHomeCoach for free! The app is designed to accelerate you onto the property ladder by giving you all the tools you need in one place, whilst you’re on-the-go. Millennials – you will never dread “adulting” so much again!