November 7, 2021

How to Sell Insurance to Millennials

Insurance companies spend most of their sales efforts on Baby Boomers, but the consumer landscape is changing. Recent research revealed that millennials had reached a population of 74.9 million, making them the largest generation currently. They surpassed the Baby Boomers, and it's estimated that Generation X (the one between Baby Boomers and millennials) will only catch up in 2028. It's time to revolutionize your insurance selling strategies!

Think about it; Baby Boomers are about to retire and adopt a more downsized lifestyle. Millennials, on the other hand, are getting into their mid-thirties which are the prime spending years. This means that they are about to dominate the consumer landscape. If you don't start focusing on them, you may find yourself losing out on a potentially profitable audience segment. 

Who are Millennials?

Millennials are the group of people born between 1980 and around 1996. They grew up in a different economic and political period and have experienced the time before and after the technology boom. Interestingly, research reveals that only 40% of this group identify with the word millennial, mostly because of the negativity surrounding it. 

How Are Millennials Different?

The difference between millennials and other generations is astounding. For instance, a survey revealed that they start saving for retirement as early as 22 years while Baby Boomers only began at 35 years. 

Here are other ways millennials are different;

  • They get married later in life and prioritize a solid economic foundation.
  • Despite being highly educated, they are drowning in debt. 
  • They were raised in a digital world, and this has shaped their viewpoints and behavior. For example, millennials tend to be judgmental of services or products with poor customer service.
  • They prefer working with people that understand or are more accommodating of different cultures.
  • They don't prioritize homeownership. 

Why Do Insurance Agents Struggle to Connect With Millennials?

The truth is that millennials consider insurance agents as out of touch and old. On the other hand, Agents have spent all their time selling to Baby Boomers and ignoring the millennials. As a result, they now have no idea how to interact with this generation or who millennials even are. 

Don't assume that you know what the millennials want. Conduct audience research and identify what they need from you. Create YouTube videos and social media accounts to engage with them. Most importantly, implement highly targeted marketing tactics that will draw millennials to your insurance agency. 

Millennials View Traditional Insurance Practices as Outdated

It's time that you stopped viewing yourself as the gateway to insurance knowledge because you're only creating an obstacle between you and the millennials. They are resistant to traditional insurance practices and are looking for a more modern approach that fulfills their needs and gives them value for their money. 

Every time you try to sell insurance to millennials using traditional practices; they often ask themselves the following questions;

  • Is insurance really as important as they say it is?
  • Why do I have to wait a couple of days to get a quote? 
  • Are phone calls really necessary?
  • Do I have to visit their insurance offices to solve issues with my policy?
  • Why can't I make a policy change right now?
  • Why do they insist on filling out paper forms?

Traditional insurance practices are no longer effective, and it's time you changed them to suit the Millennials! 

What Do Millennials Want From Insurance Agents?

With Baby Boomers, selling insurance was pretty straightforward. You'd let them know about your policies, tell them why they're essential, and then work on closing the deal. Millennials are a bit different. They want more than an insurance provider. 

  • They Want You to Understand Them

Millennials are an independent generation, and you need to treat them as such. They're also empowered, connected and will take nothing short of what they think they deserve. For instance, millennials are in no hurry to marry. Selling insurance to them that's meant to protect families will only drive them further from your agency. 

  • They Demand Customized Policies 

A one-size-fits-all approach will not work on millennials; they want policies that have been tailored to meet their unique needs. They already know that the kind of insurance their parents and grandparents purchase won't work for them. 

  • They Want Authentic Messaging

Millennials have grown up in the digital age and can spot inauthentic or fake marketing tactics from miles away. You need to accompany your products with consistent messaging that makes sense and also humanizes your brand. 

  • They Prefer Automation and Technology

If you want to engage with millennials, then you need to be online. Automation & technology enhance convenience, which is why millennials buy from companies that have embraced the digital revolution. 

  • They Want a Personal Touch

Millennials don't buy from brands. They buy from the humans that run those brands. Craft your messaging and bundle up your insurance policies in a way that will help you foster personal connections. 

  • They Want a Streamlined Buying Process

The less work Millennials have to put in, the better. Why should they have to fill in paper forms when other companies have embraced digital documents? Why make calls when you can text or chat with them on social platforms? It's all about convenience for them!

  • They Buy From Companies That Make a Difference

For millennials, it's not just about making purchases. They also want to know what you do with the money. This is why they are more drawn to organizations with corporate social responsibility programs. 

Effective Ways to Reach Millennials - Top 10 Tips for Selling Insurance to Millennials

The best sales and marketing strategies are tailored to meet the needs and preferences of the target audience. Here are the best ways to sell to millennials;

  1. Avoid hard-selling: stop telling them that they have to buy insurance. Instead, you should walk them through the benefits of insurance, the value they'll get from it, and why it's necessary. Package the information in digestible bits and distribute it on platforms that they interact with, such as social media
  2. Focus on your customer service: millennials prefer to text instead of making calls. Reach out to them through the means that they are most comfortable with, including instant messaging features and email. 
  3. Accuracy is critical: millennials are less trusting, and any mistakes can cost you your reputation and make them lose trust in your insurance agency. 
  4. Be Available 24/7: Be there when they need you and show them that you're willing to connect with them. 
  5. Provide them with value for their money: share valuable information about insurance policies. Even though this information is readily available on the internet, it will help you build trust with them. 
  6. Prioritize your design elements: package all your information in an appealing way to draw them in. 
  7. Pay attention to the language you use: don't use terms that you think millennials consider cool. This makes it seem as though you're making fun of them. You should also refrain from referring to them as millennials because this will only alienate them further. 
  8. Create scannable content: all your content should be free from fluff and irrelevant information. This will make it shareable and easy for millennials to go through. 
  9. Don't make it all about profits: focus on making a difference around your community or engaging in humanitarian projects. If all your focus is on competitive pricing and closing sales, you'll lose Millennials to the competition. 
  10. It's all about storytelling: creating stories around your brand will help you create connections with the millennials. How did you grow your agency from the ground up?  Did you face any challenges along the way? How did you navigate? Create a compelling story that they can relate to!

Top Ways Insurance Agents Can Attract Millennials

Now that you already know who to reach out to Millennials, here are the most effective ways to draw them to your insurance agency. 

  • Focus on causes that align with their values. E.g., you could start a sponsorship program that provides financial aid to students that can't raise fees. 
  • Craft messaging that makes sense. Millennials can tell when you're using bots, and this will push them away. They crave a personal touch!
  • Highlight how your products can help them spend less and save more. They want value for their money!
  • Use your social media platforms to connect and engage with them by reducing the number of promotional posts.
  • Offer them personalized and exclusive offers. This will let them know that you took your time understanding their needs.
  • Incorporate new technology into your current sales process. Millenials live on their smartphones! Find ways for them to easily share necessary insurance information with a few clicks directly from their smartphones. 
  • Implement a referral program. Millennials trust recommendations from friends and family more than they do those from organizations.  
  • Don't ignore email marketing. This will help you increase your engagement levels. The best part is that we have over 20 email templates designed to help you collect customer data so that you can conveniently send quotes to new clients.

Increase Your Sales by Selling Insurance to Millennials Today!

The insurance landscape is changing, and agencies are now facing a new problem; the most effective way to sell insurance to millennials. One of the mistakes you're making is selling to them using traditional insurance practices, which they considered archaic. 

Go back to the drawing board and research the insurance needs of millennials. Find out what they expect from you and the best way you can package your policies for them. It's all about creating connections that last and offering them value for their money. 

Looking for the best way to increase your agency's profitability? Streamline Your Insurance Sales With InsurGrid today! We'd also love to help you create winning sales and marketing strategies for your millennial audience segment, so don't hesitate to contact us.

Charles is the co-founder and COO at InsurGrid. He has extensive experience at high growth tech startups. He's passionate about transforming outdated industries with technology.

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