Millennials, also known as Generation Y, currently make up around 34 per cent of the Indian population i.e., roughly 440 million individuals, according to a Deloitte report. Born in the epoch of technological advancement, this generation is characterized by a high disposable income and tech-savviness. As opposed to previous generations that believed in ownership, millennials are moving away from buying homes and owning vehicles. Renting and sharing are widely preferred. According to a poll conducted by The Entrepreneur in 2017, 47% of millennials said that they would prefer renting if that meant they could afford small luxuries like eating out and enjoying the movies every once in a while. A glance at social media is telling of the millennial collect moments, not things approach to life.
Generation Y is a generation consumed by wanderlust; a desire that has found its business model in home-sharing. Couchsurfing and co-living are increasingly popular trends, allowing millennials to drift away from the typical hotel experience and feel at home as they indulge in their favourite pastime – travel. Additionally, such services appeal to the millennials’ frugal tastes. By the same token, car ownership among millennials is also witnessing a decline and ride-sharing services such as Uber are gaining acceptance. Millennials worldwide are questioning the need for owning a vehicle. The reason is as much the concept of ownership as it is economics. Car-pooling and ride sharing are comparatively cheaper than owning and maintaining a personal vehicle. Moreover, millennials are tech-savvy and more importantly, tech-dependent; the natural sequel is absolute faith in the power of digital solutions.
In India, millennials account for nearly half the working-age populace, naturally driving its consumer market. With easily accessible information, millennials today are more health-conscious than any other generation. The effect of their lifestyle and preferences is reflected in the insurance industry. According to a 2019 study by Max Life, only one in five Indian millennials have a proper term insurance. Survey after survey has revealed that millennials prefer financial products with a low-ticket size, that are easy to understand and aligned to their lifestyle choices. This is why small-ticket lifestyle insurance is finding huge traction among millennials. Ola has come up with an insurance policy that covers losses that may occur during cab rides. For a premium as low as Re. 1 per ride, a coverage of up to Rs. 5 lakh can be availed.
From traditional firms to new-age insurance start ups, insurance firms are offering innovative and context-based products that offer cover from an hour to a year at prices as low as Rs. 10 to Rs. 499. Car rental insurance on an hourly basis, laptop insurance and mobile insurance are a few examples of bite-size insurance products that are becoming popular. Besides these, the new-age firms also offer coverage against ligament tears and minor fractures and also no-frills insurance cover that provides protection against mammogram/Pap smear.
Well, from renter's insurance to a monsoon health cover to even insuring a bicycle or a backpack, today's millennials have a lot of insurance products to choose from that offer the flexibility they desire and cover their lifestyle needs.
The author is Co founder and Head, Networks, Symbo Insurance