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How are Gen-Y Consumers Impacting Insurance Companies?

According to Capgemini’s World Insurance Report, 47% of all customers have positive experiences with their insurer, but only 34% of Gen Y customers do. Gen Y customers are a new type of consumer who are starting to make their mark on the global insurance scene. Born between 1980’s and 2000’s, and also known as Millennials, they are the biggest generation in history.

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According to Capgemini’s World Insurance Report, 47% of all customers have positive experiences with their insurer, but only 34% of Gen Y customers do. Gen Y customers are a new type of consumer who are starting to make their mark on the global insurance scene. Born between 1980’s and 2000’s, and also known as Millennials, they are the biggest generation in history. They are looking for the same customer experience as older customers, but are even more demanding I would say: they are looking for more efficient and easier insurance services.

There is no doubt that connected technologies and the internet are disrupting how insurers are connecting with their customers. Traditional insurance firms have to attract the new customer category which is driving the transformation of the insurance industry. Gen Y customers are more demanding in the way they want to be connected with the insurer, they want to be connected to them through different social channels and internet-mobile channels for a better experience.

Gen Y customers may easily be attracted by non-traditional firms for insurance. The report revealed that 47% of the Gen Y customers are ready to buy insurance from non-traditional insurance firms and it is this disruption that's requiring insurance companies to change how they operate and work with their customers.

Our society has entered in a digital area which is why Gen Y customers tend to prefer digital channels. A Numerous amount of firms see opportunities in offering insurance through digital channels. Firms with proficiency in the latest technologies may be well positioned to wrestle customers away from traditional insurers. This is currently the traditional insurance model’s main threat and obliges them to change the way they have been used to work.

In order to remain relevant over the long term, traditional insurers must strive to make their business more agile by evolving in underwriting, changing the business design and by increasing competition from new entrants. Insurers need to improve their ability to manage data and strengthen customer bonds. In other words, insurers need to get prepared.

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