Technology is a lifeline to increasingly digital insurance consumer segments. COVID-19 accelerated the transition to digital in 2020 across all demographic groups. However, clear differences in generational appetites for digital offers emerged. Our research into insurance consumers revealed the following insights.
Millennial and younger consumers, age 18-34 express greater interest in digital offerings that help them make safer, healthier, and more sustainable choices. Insurers will need to work with ecosystem partners to create and participate in digital platform offerings that help them succeed with this segment. From fitness devices that track and encourage healthier habits, to companies that offer coaching in nutrition or stress reduction, insurers have a wealth of partners to choose from to help their customers. And with a growth of an additional $1.3 trillion in market value in global health and wellness by 2024, ecosystem investments are well worth it.
This same demographic (age 18-34) values sustainability. Insurers are already well positioned on this with 71% of Millennial and younger consumers saying they see their insurers delivering on ethical and sustainable business practices. More than two-thirds (67%) say they want digital experiences that encourage sustainable travel and shopping practices.
Consumers age 55+ are slowly becoming more comfortable with digital insurer interactions. They show increasing preference for digital claims, with 71% saying they would like the internet chat/video insurance claim process to replace the traditional in-office claim process—an increase of 3%.