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July 1, 2019

Leveraging relationships with existing clients is not the only solution to surviving the ongoing digital disruption in the industry. Another meaty report, coming from a cooperative effort between Coverager and Cake & Arrow (a company we spoke with at Dig | In 2019), delves first into the changing economy and how millennial attitudes are linked to it, and then explores how millennial values translate to purchasing decisions around insurance and the adoption of insurtech services.

“Millennials,” the report says, “have opted for new levels of convenience unlike any other generation before them.” Facebook, Airbnb, Uber, Amazon and Netflix have all become dominant companies today because of their laser focus on making their service convenient to their customers—and insurance companies have followed suit. The report cites GEICO as one of the first companies to begin to adapt to this trend with its introduction of purchasing insurance online. However, reducing millennials to “the convenience generation” may not be entirely accurate.

The report also found that millennials prioritize low prices—“When everything is essentially the same,” as it is in most personal lines of coverage offered by insurers, “it all boils down to price.” Millennials struggle financially (58 percent, according to the report, are struggling to pay their bills or are just breaking even), so even though they understand the value of insurance, the vast majority of them don’t think it’s worth buying and only do so because they feel they have to. Just four percent of millennials surveyed by Cake & Arrow agreed with the statement, “insurance is worth every penny.”

Again, we see an opportunity for the broker to fill the role of trusted advisor. As millennials increasingly step into the role of executives, decision-makers and company owners, they will need someone who can convey the value of insurance in a way that appeals to them. One of the things millennials value most is transparency and the knowledge that the coverage they seek will actually help them when they need it. Brokers, with their developed understanding of coverages and the industry, are uniquely positioned to help provide that.