Gen Y says insurers haven’t targeted them yet

"You think you know, but you have no idea," summarizes how the average Gen Yer feels about the life insurance process according to a study released by Prudential Individual Life Insurance, a unit of The Prudential Insurance Company of America, a subsidiary of Newark, N.J. based Prudential Financial, Inc.

The report, "Reaching Gen Y – easier than you think," revealed that consumers born between 1979 and 1994 believe that insurance companies haven’t officially started targeting them yet, and as such, have resorted to using generic tactics to sell their products. While 68 percent of those surveyed intend to buy, or add life insurance coverage within the next three years, they aren’t interested in being a part of the typical purchase process. Gen Yers want to be empowered to buy, and ultimately they’d like to see people like them who have insurance and are better because of it.

"Hearing these statements firsthand really turned our original thinking and approach on its head," said Joan Cleveland, senior vice president, business development with Prudential Individual Life Insurance, in a press release. "While it’s clear that more research needs to be done, we know that our marketing messaging needs to meet Gen Yers where they are, and allow them to see themselves with life insurance."

The real challenge is for the industry to augment traditional distribution channels and begin to think more broadly about different consumer access points. This is particularly true for Gen Y, because this group doesn’t want to be pressured or automatically enrolled into life insurance plans they do not understand. They also want more education about life insurance products and ultimately an easier way to buy. While 53 percent of Gen Yers surveyed would consider purchasing life insurance online, they still want to talk to an agent at some point during the process.

"Today, so much of our time is spent online so it’s no surprise that the Internet is their first stop when they’re looking for information about life insurance," said Cleveland. "When people put Gen Y and the Internet in the same sentence, they automatically think social networking. But that is only one part of the equation, so we’ll leave it up to them to drive the process and tell us where else we need to go."

The study also revealed that Gen Y understands life insurance as a concept, but the complexities of pricing, product types and the underwriting process are still lost on this group, resulting in many misconceptions. For example, many Gen Yers think life insurance is only necessary for those with high-risk jobs or for people who are sick, old, or both. Some even described it as a luxury item only for the wealthy.

Despite these perceptions, Gen Y is a market that should not be overlooked by the insurance industry.

"To align with the lifestyles and preferences of Gen Yers, we’ll do a better job of demystifying the life insurance process. And, we’ll look to relinquish some of the control and allow them to teach us about themselves so we can create relevant products and processes," said Cleveland.  

Print