What do millennials expect from insurance and how can e-businesses help?
Millennials comprise a quarter of the world’s population with spending potential exceeding $200 billion – more than any other generation in the past. They expect a great customer journey from any online product they purchase, and insurance is no exception. This means that from the consumer’s perspective the future of insurance is dependent, among others, on two important market trends: digitalization and simplicity.
Rapidly becoming the majority of customers for insurance products, digital native millennials expect personal, simple and hassle-free experiences. They have no patience for the complex and cumbersome traditional buying process; they expect the e-business to delight them and not make them think or work for a service offered.
In fact, 72% of consumers purchasing online products fail to complete the purchase if the website or app is “tedious or concerning”. And with millennial consumers, this number grows exponentially, with more than 4 out of 5 millennials leaving the checkout without completing their transaction. The consumers of the future won’t bother completing an insurance-related transaction if the product and customer journey fail to meet their expectations.
Furthermore, there are endless stimulations, and to capture consumers’ attention insurance products need to be tailored to their needs. Yet, today’s insurance industry is lagging behind with one-size-fits-all legacy products. To meet millennial demands, insurance providers have to adjust their products and approach, bridge the digital divide and explore new ways of doing business.
Millennials expect to buy insurance products from within the customer journey. Products which not only offer protection, but also deliver a totally new and delightful experience. This can be achieved by:
- Offering a worry-free and hassle-free experience by providing immediate and automatic compensation with no claim process required.
- Turning negative experiences in customer journeys into positive experiences through contextualized, personalized insurance that meets consumer concerns and demands.
- Delivering trustworthy and affordable solutions through transparent, simple policies with optimized pricing.
My company’s name, Setoo, comes from the French “c’est tout”, which means “that’s it”! For us, it means simplicity. It symbolizes a new generation of technology which addresses millennials and actually makes their life easier and sustainable. It’s about transforming complicated insurance processes into simple, super-targeted products that address very specific individual needs.
About the Author
Noam Shapira is an entrepreneur and veteran of Israeli high-tech, constantly looking for disruptive solutions that enable traditional industries to adapt to the digital world. As co-CEO of Setoo, he’s seeking to totally transform the way insurance works. He’s addressing the demands of millennials for a delightful customer journey and enabling e-businesses to quickly build and launch new types of insurance and protection products, which deliver new revenue opportunities.