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Millennials highly optimistic about insurance industry, plan to stay as long as possible

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Four out of five millennials are “optimistic” or “very optimistic” that the insurance industry will evolve to attract the next generation of insurance talent, due to productivity and efficiency gains from technology adoption, according to Vertafore’s second annual “Millennial Revolution” study.

According to U.S. Census data, millennials outnumber baby boomers and are expected to make up half of the global workforce by 2020. However, insurance needs to find a way to make the industry attractive and leverage this talent. 

Work/life balance is No. 1 reason why millennials stay in insurance

Year-over-year comparisons show that work/life balance is the No. 1 reason why millennials stay in this industry, according to Vertafore. “The insurance industry is a great fit for millennials because of the variety of opportunities that are available as well as flexible work schedules in some cases. While underwriters, actuaries, and account managers might have traditional office hours, insurance company sales representatives and agency producers have extremely flexible schedules. In short, there is a position in the industry for just about anyone,” says Marc McNulty, vice president of insurance operations at The Uhl Agency

Millennials also name compensation and enjoyment of work as reasons for staying in the industry. They also value decision-making, with three-quarters identifying it is “important” or “very important” to influence change in their companies.

Nine out of 10 millennials also identify their company’s use of technology, particularly mobile and social media, as key elements contributing toward job satisfaction. More than 70 percent of millennials use their smartphone at work, compared to just less than 60 percent of baby boomers.

Correspondingly, 18 percent of veteran workers say that the use of technology is a detriment to productivity, the survey reports, while 82 percent of millennials say technology increases efficiency and the ability to stay competitive.

“Phones and tablets are the last thing millennials check before bed and the first thing they check in the morning. There’s no question they’re able to increase the productivity and throughput of employees, but there is a corollary — customers are also connected,” Anthony Gomes, Vertafore’s senior corporate communications manager, tells our sister site, PC360. “The skyrocketing use of mobile technology should serve notice to leaders in companies that consumers expect access to companies on their own terms in timelines they define for themselves, and that millennials are always connected, looking for ways to drive new business through that technology.”

Positive outlook about the insurance industry

Year-over-year comparisons also show that millennials have maintained a positive outlook regarding the insurance industry, with 82 percent “optimistic” or “very optimistic” that insurance will evolve to attract young talent.

“This understanding of next-generation business technologies is definitely a key driver for this industry optimism and their desire to stay in the industry longer than other age groups,” Gomes says. “While those in more mature generations see these new technologies as a deterrent for remaining in the industry, because they are less familiar with how to utilize the capabilities to drive more business efficiencies, the millennial generation grew up with this technology and can see untapped opportunities for how it can be used to improve the overall business and create solid, longterm success for their business.”

In addition, 77 percent of millennials plan on staying in the insurance industry for as long as possible. These millennials hold a variety of positions within the independent agency channel:

  • Producer (25 percent millennials, 20 percent baby boomers).

  • CSR (27 percent millennials, 25 percent baby boomers).

  • Account manager (27 percent millennials, 26 percent baby boomers).

See also:

30 under 30: Meet the millennials who are transforming the insurance industry

The $200B generation: Millennials reveal challenges & opportunities in insurance [infographic]

The gender gap in company C-suites: unacceptably wide

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