Engaging millennial customers has been a strategic priority for insurers. With most millennials in the prime of their careers, they are increasingly focusing on long-term financial goals, health coverage, auto insurance, asset protection and so on.
As per Statista, millennials constitute the largest generation group in the US with a 72.24 million population - a vast market that insurers cannot ignore.
But millennials come with certain demands.
- They prefer personalized and customized solutions and products and a transparent approach to guiding them through these solutions
- They are increasingly comfortable using digital platforms and enjoy the ease and convenience it delivers
- They demand quick and seamless services
These needs are driving the transformation of the insurance industry today - with carriers deeply invested in getting their customer experience right and striking the right note with their target demographics.
While they build omni-channel experiences and seamless hassle-free interactions, they are sinking deep in another crisis:
Attrition of workforce.
83% of agents quit within the first three years! And with baby boomers retiring; the average age of an agent in the United States is 59. The insurance sector is in the race to find the right talent from the millennial and Gen Z population to steer its course in the coming decade. But it is easier said than done. According to Zippia, the insurance industry turnover for 2021 is 26%. And as Insurance Business magazine says, the industry is unable to hire fast enough to replace the people leaving.
The reasons for attrition are many: compensation and benefits, work-life balance, the perception of insurance as a traditional, unchanging sector, the lure of attractive tech jobs and more. As insurance carriers rebuild their traditional image and rework their compensation and benefit programs, here are a few gaps they could focus on closing, in parallel.
- Your workforce is millennial too. The newer agents that are being hired are from the same demographic. So focusing on customer experience is just winning half the battle. Insurers should revamp workforce experience as well. After using intuitive apps and platforms for day-to-day chores like ordering groceries, or books, or laundry pick up - using legacy apps and multiple platforms at work becomes a deterrent. They expect the same ease of use and seamless workflows and processes at work as well. Insurers, if not already, should invest in tech capabilities that can speed up day-to-day operations for their teams.
- Tech can play a role in work-life balance. With aggressive targets and deadlines, agents feel burned out. According to an article in the Independent Agent magazine, the second largest reason for agents to quit the industry is because of poor work-life balance. Tech can be a great enabler in streamlining the day-to-day activities for an agent. For example,
- Giving them access to mobile-first applications so they don't need to jot down notes in a diary and come back to the office desktop to update it
- Leveraging tools that can automatically capture their activities, take notes, set up meetings faster and allow them to share information at the click of a button
- Nudge them on important dates, meetings, reminders etc. so they are more efficient through the day
Building a tech ecosystem that can remove laborious tasks and make them doubly productive in an eight-hour workday can help them check off items on their tasklist and get back to other priorities.
- A learning environment builds career paths. As younger workforce steps into the industry, insurance carriers must build robust onboarding programs to help build the skills and know-how to be successful insurance sellers. Beyond onboarding, they must build an active learning environment to help agents unlock their potential and grow in their roles. As the tenured agents retire, it is important to capture their experience and best practices to cascade to the newer teams. Establishing coaching networks that pick up best practices and best next steps from the star performers in the team and share with the larger teams can proliferate best selling practices.
As the insurance industry ushers in a decade of digital transformation, reinvention and sharper customer focus, it becomes equally important to focus on the internal stakeholders and give them a roadmap for growth. A mix of healthy organization culture, compensation, well-rounded benefit programs and the right technology support can pave the way for the ‘great retention’.
Sponsored by ITL Partner: Vymo
