The Life Insurance Industry has been in distress for years over the aging field force problem—and their resulting inability to reach younger consumers.
In fact, this industry has been concerned since Gen Y was in diapers.
And cracking this code? It’s on the minds of top marketing and distribution executives in every company. However, few are seriously working on it while most put their money into immediate opportunities with Boomers and Xers.
Why not Y, why not now?
The rationale at play here is:
“That’s not where the money is right now. And, Gen Y’ers think they are invincible because they have youth on their side. The last thing they are thinking about is what if…”
Or is it?
A recent LIMRA study (2008) showed that Gen Y isn’t too far behind X and Boomers in their thinking. 63% of Y-ers think life insurance is important. And almost 2/3 agree that it’s the best way to protect the people they care about.
What’s the difference?
It’s where Gen Y is getting their advice.
When Gen Y needs life insurance information, they utilize the internet, right? Wrong! In fact, Gen Y is less likely to get this type of information through the web than either Gen X or Boomers! And while the single largest source of this information is still the financial advisor, Gen Y is almost equally as likely to turn to friends and relatives for this advice. And unlike their older siblings and parents, they turn to their employers as well. Why? Perhaps there just isn’t enough interest on the part of advisors to work with them, and Gen Y needs to turn to someone else they trust. More demand than supply.
Where’s the innovation?
It may not be the product, or vastly different delivery systems; it may be in the area of making this market more attractive to producers—or to get friends, family and employers in the mix. Yes, I know you may be thinking “been there done that.” But perhaps you haven’t had the right combination of insight into an unmet consumer need, idea and communication. If one is missing or slightly off target, innovation won’t be successful. If the process for uncovering and aligning all three isn’t right, new products in the life insurance category will miss the mark.