It has become fairly common knowledge that Millennials and Gen Y’ers are key targets for retailers with robust online and mobile channels. Compounded with the steady rise in the number of Americans – regardless of age - who have grown comfortable with shopping online, and its obvious that the importance of digitizing services cannot be underestimated. Retailers such as Amazon and Zappos have revolutionized the shopping process to make it faster and easier to purchase almost anything. To stay competitive, traditional retailers have built up their online and mobile channels to meet consumers’ expectation that they maintain a multichannel presence.
The report gives insight into the digital wisdom of those ages 20-40, a rating of how strongly consumers are currently engaged in online services and connected devices.
The insurance industry as a whole has lagged when compared to leading eCommerce businesses in providing an optimized multichannel shopping experience. A new report from YouGov, titled Digitalization in the Insurance Market, highlights the areas of opportunity for insurance providers in the digital domain. Given the highly regulated environment and time required to gain approval for new products, insurance providers should have strategies in place ahead of time to serve changing consumer preferences.
Over the past ten years, insurance providers such as GEICO, Progressive, and Esurance have experienced significant growth by providing quotes and allowing consumers to purchase insurance products online. Additionally, several insurance companies are adding capabilities for mobile ‘quote and purchase’. And Google recently entered the fray as a potential industry disruptor, offering price comparisons from several insurance companies through its Google Compare site.
As more consumers shop and purchase insurance online, the preferred method for interaction with their insurance provider is also shifting – especially among younger customers who tend to prefer channels that prioritize speed and convenience, to fit their lives. YouGov evaluated the digital readiness of insurance providers based on customer ratings of their digital services (i.e. website, e-mail communication, mobile apps) with AAA, GEICO, Progressive, and State Farm ranking among the top four.
As the wealth of consumer information available online grows each day, this can provide an opportunity for customized product recommendations and offers based on an individual’s information and behavior. The younger segment indicates a desire for digital offers and alerts based on real-time data.
Usage-based insurance products also present a significant opportunity among the younger generation. Products such as usage-based or pay-as-you-go insurance are potential differentiators in the industry as personal devices, cars, and homes provide ‘smarter’ information. With the growth of smart wearables and fitness trackers like Apple Watch and Fitbit, taking advantage of information captured by devices can have clear benefits for both consumers and providers. Consumers can save money by being rewarded for behavior, and providers can more accurately manage risk.
If you would like to learn more about the report, please contact Tom Fuller at email@example.com.
For this study, YouGov surveyed a nationally representative sample of 2,000 US insurance consumers age 20-40 in Q3/Q4 2015. A global insurance study was also conducted in 30 countries, data from this study is available upon request.
YouGov is a leading international full-service research and consulting company and a pioneer in the use of technology to collect higher quality, in-depth data for the world’s leading businesses and institutions so that they can better serve the people that sustain them. With offices throughout the US, UK, Europe, the Middle East and Asia, YouGov leverages its online sampling, research expertise and consulting experience to provide clients with sophisticated market strategy, market analytics, and survey and forecasting services.