Millennials make up for a large market for financial products across the globe. They are expected to soon become the largest market for the same. Also known as the generation Y, millennials have been brought up in the era of digital technology, internet and social media.
The behaviour of millennials differ quite a lot in the financial investment market as compared to their preceding generation. The millennial, as well as post-millennial generation, tend to evaluate investment from a technological perspective.
So, when it comes to buying insurance, the ease of buying, maintaining, renewing and claiming an insurance policy is of utmost importance.
Since millennials usually have a higher disposable income, they tend to be risk-takers with high ambitions and hence they look as insurance as a risk-management product.
“They compare insurance policies with their features and ease of buying, rather than focussing on a lower cost. So, millennials opt for term insurance policies as a protection tool and opt for ULIPs for their investment requirements,” said Anand Prabhudesai , Co-Founder of Turtlemint — Online Insurance Advisor Platform.
Life insurance in particular is a must-have product in the portfolio of millennials due to its risk management characteristics. It’s important for the younger generation to buy life insurance products with a eye on future considering their lifestyle. EMIs, loans increase financial liabilities of an individual/breadwinner and term insurance plans provides the best risk cover to the family in case of demise.
With technology and the internet, most products are well researched before they are bought. This is especially true for products with a longer shelf life like insurance.
“Millennials are extremely tech-savvy and hence they research a lot before purchasing. They tend to read the information such as users’ reviews or blogs available online as well as go through the videos and compare the products themselves. There is a lot of information available online which influences the buying process of millennials,” added Prabhudesai.
“The entire comfort of researching and online window shopping is quite predominant with millennials. However, according to Boston Consulting Group report, insurance still remains to be a compare-online-buy-offline product.”
Web aggregators and online portals remain a favourite for millennials to research and buy the life insurance products.
To woo the millennials, the online portals target to provide information through video content, articles, posts on various social media, and news content. Since millennials are all set to become the largest market segment for the insurance domain, companies are all geared up to tap in to this space as much as they can.