Almost all of the millennial generation has reached driving age, but what are insurers doing to engage this crucial sector of the market?
This generation – born between 1982 and 2000 – are the first ones to be true digital natives, so insurance companies need to appeal to their sensibilities and do so using the channels that they use every day.
Research1 shows that millennials typically come to decisions after gathering a range of opinions, be it their parents at home or friends and other contacts via social media.
This sense of community continues following purchase, as millennials seek affirmation for their actions. Usage-based insurance (UBI) can help insurance companies meet these needs, and much more besides.
The young driver program element of usage-based insurance appeals to parents as it lets them see how their children are driving and helps keep them safe – it can also keep them off the roads late at night while they’re still novices – crucial for peace of mind.
This same telematics data can help millennial customers moderate their own driving behavior, while providing scores introduces gamification and immediately makes the data more shareable.
This isn’t just a one-way street – by giving regular scores, telematics provide insurers with unprecedented engagement with customers, which can only boost brand loyalty.
Don’t take millennials for granted though – respect is a key commodity. Forgetting this could result in their passion for social media manifesting itself in a much less positive way for your insurance company.
1 Your Customer is the Star: How to Make Millennials, Boomers and Everyone Else Love Your Business, Micah Solomon, 2014