This is excerpt from “The Fight for Future Markets Report. Attracting Millennials to advice and insurance”
In our report we suggest some ideas to help attract new business. For the full content and report you can download it here.
- Broaden the relevance of life insurance for those without kids by highlighting the benefits and need for TPD and Income Protection.
One of the biggest barriers to getting millennials on board with life insurance is their belief that it isn’t relevant to them. While many are interested in learning more about life policies and even open to purchasing them, there is a common perception that if you don’t have children, large debts or a spouse, then life insurance isn’t for you. Millennials without children need support in understanding that the range of life insurance on offer includes policies appropriate for their individual circumstances, and that there is a cost benefit in taking these out early. Make sure your value proposition stresses that life insurance can be and is relevant to young, single and childless Australians too.
- Consider experiments in low-cost advice as referrers (e.g. help them validate their research).
Millennials want premium advice, but the challenge is they’re not willing to pay for it. One way to bring forward the benefit and help them see how financial advice could assist them, is to help them dip their toe in the water through low-touch, low-cost interactions. Offering robo-advice, supplemented by a short in-person discussion to walk through the recommendations and make adjustments where necessary, could be a good way to start building a relationship and help embed yourself as a trusted partner who’s there for them – on their terms. Alternatively, you might consider the possibility of offering ‘validation consultations’, whereby young Australians with a desire to be independent and self-sufficient can independently compare policies and then come to you for questions or support before making the final decision themselves. Focus on the experience and encouraging reviews, not trying to lock them in for the long-term. They may be saying ‘no’ to the model, not the value.
- Project-based selling and financial coaching.
While traditional full-service financial or risk advice may not be right for millennials right now, this doesn’t mean the door is closed altogether. You might choose to provide low-cost financial or risk ‘coaching’ to young clients who are simply interested in improving their financial literacy, and progress to fully-fledged advice and product recommendations as the client progresses through life stages. What if the initial focus was solely on coaching them to achieve their goals?
Fixed-cost packages with premiums and payouts tailored to life stage are an opportunity to offer transparent, simplified options for younger customers who are looking to get started with life insurance but aren’t ready to commit to a more complex decision-making processes.