Lately it seems the media has been talking a lot about Generation Y or Gen Y. Exactly who belongs to this generation and why is this generation so important to insurers?
Generation Y is defined as those 83 million or so individuals born between 1982 and 1995– essentially the “tech gen,” as they’ve been exposed to “new” technology their entire lives. They are so immersed in technology that they switch between media platforms 27 times per hour. Nearly half of these technology-inclined youths even said they would rather keep their laptop or smartphone than their sense of smell. How can insurers expect to predict, let alone understand, this seemingly alien group of individuals?
Across the world, only 47% of insurance customers have positive experiences with their insurer. This sounds bad, but that number shrinks to 34% when talking about Generation Y customers. Gen Y customers use social media for insurance needs at least once per month and interact with their insurer two and a half times more often via social media and two times more often through their mobile apps. Basically, Gen Y wants to keep their human interaction to a minimum.
They’re not the only ones, though. Affluent customers also interact with their insurers one and a half times more often through social media. At least the affluent and Gen Y customers aren’t a huge part of the market, right? Wrong. Gen Y makes up 32% of the market while the affluent make up 27%. They’re so unhappy, in fact, that 47% of them are ready to switch to non-traditional insurance firms to be more in-line with their technological needs.
It’s time to transform.