Here’s a crazy question: How would Wayne Gretzky run an insurance company? He would be looking at ways to crack the code in Generation Y (Millenials). And Why? Because if the insurance industry wants to look forward and get ahead, companies need to know:
It’s not where the money is; it’s where it’s going to be.
The insurance industry has been “following the money” for years — looking for gaps in the Boomer market and finding better and more innovative ways reach them. But perhaps it’s time to start looking where the money will be in a decade or so, versus focusing too much on where it is now.
Yes, Boomers are living longer, and working longer — and because of that, they may need to retain more money than they pass on. But eventually they will pass on (though many of them aren’t going without a good fight). Couple that fact with the possibility that Boomers may leave inheritances to a generation of Millenials who have been completely ignored by the industry because they don’t have money today, and you have uncovered a huge opportunity for the insurance industry to start innovating now.
Even if Millennials don’t inherit anything from their parents, they should still be expected to start and grow their careers and incomes. And if the industry ignores them now in these formative years, who will they turn to? The telecom companies? Retailers? Or will someone else swoop in and steal them?
Millenials may not create big margins today, but someday they will. Why wait for someday. Do what The Great One would do: Innovate today and capture them now.