Insuring The Millenials: A Challenge or an Opportunity?
India is a young economy. In fact, almost half of it is supported by the millennials, comprising 47% of the total workforce of the country.
So who exactly are the millennials? Technically, people born between the years 1981 and 1996 are considered millennials – meaning the oldest among them are now about 40 years old. This is approximately 34% of the total Indian population, which is a lot. Not surprisingly, this major chunk of the population is now the breadwinner of most families of our country.
Needless to say, because they make up such a massive portion of the country’s workforce, millennials are the drivers of consumerism. Their familiarity and adeptness with digital media have made them more aware of the scope of services available to them. This makes it a highly competitive market to grab their attention, especially in the case of insurance. The recent pandemic and its continuing aftershocks have made insurance distribution challenging in the case of millennials.
The question now is, how to approach the millennials with the insurance services they need?
The world has entered the 4th Industrial Revolution, which is pushing consumer experience further into the digital space. Millennials, especially, have adapted really well to this change and now realise the conveniences that come with it. This group wants all their experiences, end-to-end, delivered over their networks and this will surely include insurance if we’d like them to actually give it a thought.
Another challenge that the insurance industry faces with millennials is related to the products they offer. Off-the-shelf policies that have been a mainstay for 2 generations aren’t going to sell that much among this generation. Millennials need customised solutions, delivered right at their doorsteps with minimal back-and-forth.
Thankfully, many InsurTech companies are stepping up with trailblazing transformations for the insurance distribution industry. These companies have created an efficient digital space wherein insurance distribution can be carried out swiftly and per the terms of the millennials.
Partnering with FinTech, OEM or multi-brand retail, eCommerce, and many other niche distributors, the Insurtech industry also provides turnkey APIs that integrate seamlessly into the distributor’s digital environment.
But how is this helping insurance distribution?
Bundling products with related insurances while completing a transaction is helping insurance penetration to increase at a significantly higher rate. It is similar to distributing travel insurance with air tickets, or laptop insurance along with the device. The real benefit of distributing insurance using the platforms of insurance technologies is seen in the fact that it takes care of all the mandatory licensing requirements which enable its partners to go to market quickly and efficiently.
As much as millennials are concerned, they look for pragmatic approaches when it comes to making long-term, high-consideration decisions. Insurance is one of those decisions. Through digitalizing the entire process, it is possible for the insurance partners to lay out the complete details, procedures, and processes transparently for their customers to base their decision on.
The world has already begun its paradigm shift into the digital age. InsurTech has the infrastructure and the insight to help insurance companies deliver their products to their target audience seamlessly, with lesser manpower and effort. With the newfound technological advancements, a transparent, systematic, and swift insurance universe is set to rise.