Millennials Want Digital First, But Not Digital Alone

Blog /Millennials-Want-Digital-First-But-Not-Digital-Alone

The insurance industry, among others, is at a crossroads of shifting demographics. Younger, asset-light Millennials are entering the marketplace, and their demand for digitally enabled, personalized, customized products and services is seemingly at odds with the needs of older policy-holders who still value the more traditional agent relationship they know and trust.

At first glance, the gap looks wide, but if you look closer, you’ll see both groups want the same thing: a personalized experience of their choosing. For Millennials, that means digital first, but that isn’t the whole picture.

Pie Chart - Millennials Want Digital First, But Not Digital Alone

Consider that an Applied Systems survey of 18- to 34-year-olds found that 89% had auto insurance. Of those, 37% purchased in person and 25% purchased over the phone, compared to 35% purchasing online. Add to that Gartner’s prediction that consumer preferences for traditional interaction will stall the use of digital insurance channels to below 30% through YE 2016.

What gives? Pure digital won’t be the primary channel of choice for insurance? Not even for the digital native?

To reconcile this seeming disparity, we need to look beyond pure digital and consider the entire ecosystem of engagement in which agents, operations employees, and customers interact (below).

Stats Flow - Millennials Want Digital First, But Not Digital Alone

Companies that can connect the back-end systems that power quoting, claims, and underwriting with agency management systems and comparative raters to create a seamless experience optimized for both agent and policyholder will be able to give traditional customers what they need (a knowledgeable agent able to service their needs) and digital natives what they desire (personalized, contextualized interactions on the channel of their choosing).

Post Date: 10/13/2015

Lisa Woodley, NTT DATA Services Lisa Woodley

About the author

Lisa Woodley has spent 20 years bringing technology and business together to design new experiences. As VP of Customer Experience for NTT DATA Services, Lisa brings the human perspective to technology innovation to create digital experiences that elevate brands and drive business value. Lisa was a Computerworld Top 100 Technology leader in 2017 and is a Women in IT Digital Leader of the Year finalist in for 2020. In addition to her role at NTT DATA, she is an adjunct at Rutgers University where she teaches User Experience Design as part of their Masters of Business and Science program.

VIEW ALL POSTS
EXPLORE OUR BLOGS