Perhaps unsurprisingly, a study recently conducted by insurance analyst Life Ant, seems to suggest that the vast majority of millennials actually look to shop for life insurance online as opposed to purchasing policies face-to-face with a seasoned professional. In this day and age where technology is perpetually becoming more and more integrated into our daily lives, I cannot exactly say this is unprecedented. However, that said, I do think it’s intriguing regardless, especially considering the many nuances of the life insurance industry.
Perhaps it is for this reason, that older consumers offered a radically different opinion. Whereas 68% of participants between the ages of 18 to 39 claimed that they would “use a good online solution to compare choices and buy it,” individuals over forty clearly articulated a substantial hesitation in agreeing to purchase an insurance plan over the internet. In fact, those over forty who participated were directly split on whether or not they would use the internet to purchase life insurance coverage.
With the younger generation’s more inherent affiliation with the digital sphere, it only makes sense that they are more inclined to purchase life insurance services through the internet. The internet is now capable of providing nearly everything to survive in society today, from groceries to clothes to even jobs. Now, with the science to back the theories of increasing reliance on digital technology, it would seem that convincing millennials to purchase life insurance will become even more difficult as time goes on.
In the past, it had already caused life insurance companies a headache. In fact, in 2015, a study performed by the Life Insurance and Market Research Association concluded that an amazingly meager 20% of millennial Americans believed they would purchase life insurance. Yet, this number is not solely indicative of just millennials. Indeed, it would seem that as millennials increasingly enter the workforce the insurance industry as a whole is becoming less significant. In fact, whereas just thirty years ago insurance companies were responsible for an astounding one-half of all financial services, they are now relegated to a mere 25% of the financial services sector.
Although many companies are fighting back and forming targeted, stylish, and more modern marketing campaigns, only time will tell if they are to be successful. Such campaigns sometimes take the form of educational seminars or even as wine tastings and culinary masterclasses. While I wish them the best, I am not sure such campaigns will be able to overshadow the ever-looming informational resource that is the internet.