Insurance companies must transform the sector in the digital domain and break down the wall that separates them from the millennial generation for good. This generation believes that the industry still wears a suit and carries a briefcase, and is far removed from their primary interests. Not adapting to the new era may end up consuming those companies in the sector who are still anchored in the past, maintaining certain historical customs that distance them from the young.
For this reason, putting across a modern image is the perfect hook for attracting the millennial audience, a first step in getting closer to this generation that often uses technology as their main tool.
In this respect, technology can and must become insurtech’s main ally. Technologies like blockchain, artificial intelligence (AI) and the automation of services manage to remove the mundane and boring tasks that represent the least interesting part of insurance. Processes that improve the work of insurance companies, making it efficient and attractive to the millennial generation.
How to connect with the millennial audience
The insurance sector should find channels through which it can interact with the millennial generation, find what interests them and make changes that help it to earn their interest.
Mobile apps are one tool for this. Young people use apps on a daily basis, where they have all the content that they need and that interests them in just one click. This is how they expect a company to act – with the customer in mind and allowing them to have all the services that it offers available in an instant.
Social media also serve as a means of communication between millennials and insurtechs. They establish a link between the company and the user, and they show the young audience a renewed image. According to a study by Oberlo, 90.4% of millennials use social media.
At the same time, the collection of data that insurtechs have access to make it possible to personalise products and services for each customer. To be able to differentiate between a person and a customer is seen as an advantage by the young audience, who feel how companies are concerned for them and for what they need at any given moment.
A problem can arise with data collection: the use to which that data will be put. Through blockchain technology, the insurance sector can find new ways to offer products and services to its customers. It is a technology that allows companies to be transparent to users and to properly protect the information obtained from data collecting, thus minimising the risk of fraud. The younger generations are very aware of the importance of security and privacy.
Successful digital transformation is an absolute must for a system that has been slow to change, and working hand-in-hand with technology and with a focus on young people is the final step in achieving this. The insurance industry wants to cease being that company anchored in the past that the millennial generation regards with mistrust. MAPFRE is committed to this renewed image by opening the door to innovation and technology from insur_space.