The Millennial generation — which generally refers to individuals born between 1980-1996 — continues to be an important customer segment.
Millennials are now the biggest cohort in the workforce and are opening the majority of small businesses. That means they hold a lot of power, both through the products and services they purchase and by way of social influence.
Companies are motivated to understand Millennials and win them over.
That is not an easy task, considering Millennials show high levels of distrust in major institutions and most businesses. The health insurance industry, which struggles with public opinion more broadly, has a long way to go in terms of gaining Millennials’ business and trust. Brokers should be aware of the three things health insurers, and other insurers, can do to convince Millennial decision-makers that insurance is an important purchase.
1. Costs are a bigger concern than for other generations.
Millennials are more concerned with costs than other generations. Many young adults are saddled with student loan debts while at the same time, salaries have largely stagnated and costs of living continue to increase.
Millennial business owners understand these struggles because many of them have experienced them personally.
Many Millennials would rather go without health insurance than enroll in an unaffordable plan, especially since they are often relatively healthy and may not see an immediate need for healthcare services.
In order to convince Millennial business owners that health insurance makes sense for them, health insurers and brokers will have to prove the value of providing health plans. Insurers need to persuade Millennial business owners of the short-term and long-term benefits. They should create targeted, relatable ads that emphasize coverage of preventive services, which can reduce costly health care services down the road.
Millennials treat health and wellness as a daily, active pursuit, so this message may resonate well with them. Small businesses should also view health benefits as an appealing incentive in order to attract and retain Millennial talent.
2. Transparency is crucial for Millennials.
While costs are important, Millennials also place a high value on other brand characteristics like transparency. Considering the high levels of distrust among this generation, it makes sense that Millennials want clear and honest information.