Insurers Must Reach Millennials and Gen Zers. Here's How
The best approach is to design from scratch and to build with the customer in mind.
As an example, if the target customers are millennials and Gen Zers who need a simple term life insurance solution, you may want to focus on instant decision underwriting and lower face amounts to meet the most basic needs.
This approach could mean that many historical riders and features are actually not necessary.
It likely also means that the tools used in underwriting need to focus on information that is available instantly as opposed to traditional methods that could take weeks or even months.
3. Marry digital with advisor expertise.
Let’s talk about the elephant in the room: many carriers are leery of disrupting their primary distribution — agents.
Carriers, and agents, may fear that embracing digital solutions will be seen as a threat to agent-based distribution.
On the contrary, when done correctly, embracing end-to-end digital solutions enables agents to focus on what they do best: educating clients and building trust.
Investing in digital innovation helps advisors save time with less paperwork and case management, removes barriers to collecting information and keeping track of policies, and ultimately, results in a better customer experience.
Modern life insurance platforms enable constant learning, iteration, and innovation for agent-facing items.
By embracing modern tech, carriers can constantly launch and test new agent tools that support onboarding, new case management, and managing in-force blocks of business.
4. Recognize the long-term potential.
Currently, term life insurance will likely be the best fit for most young millennials and GenZ.
Securing these customers today can help to build loyalty and trust so that, down the road when they have more robust financial needs, you already have a relationship with them and can be there to meet their needs.
Innovation can be tricky, but it does not have to be complicated with the right mindset and partners.
Jeremy Bill is the chief insurance officer, and product design leader, at Bestow, a digital life insurance company.
(Image: UfaBizPhoto/Shutterstock)
