It seems that millennials (individ- uals born between 1977 and 1994) and the largest group of home- buyers and renters in the U.S., are
less happy with their insurance experiences than any other age group.
In a study recently released by J.D. Power, Gen Y consumers are the least satisfied
when compared to other generations. On
a 1,000-point scale, Gen Y customers averaged 755 for their homeowners insurers
and 784 for their renters insurer providers.
Satisfaction ratings were highest among
those born before 1946 (pre-boomers) at
846 for homeowners insurance and renters
insurance was highest among those born
between 1946-1964 (boomers) at 829.
The study looked at five different fac-
tors for homeowners and renters insur-
ance: interaction, policy offerings, price,
billing and payment, and claims. Satisfac-
tion factors for individual life insurance
included four factors: price; policy offer-
ings; interactions — including the call
center, website and local agent/financial
advisor; and billing and payment.
According to the study, Gen Y satis-
faction with homeowners insurance was
lower across all five factors than boomers,
but particularly in the area
of interaction (-63 points)
and claims (-59 points).
While millennials didn’t
score the lowest for life in-
surance products, they do
represent the largest group
of first-time purchasers and
are more likely than their
to purchase this and other
“Millennials are a criti-
cal demographic for insur-
ance companies, given that
they are the largest group of
homebuyers and renters, as
well as the largest group of
prospective life customers,”
said Valerie Monet, director
of the insurance practice at
J.D. Power in a press release.
“Insurers in one or all of
these categories need to pay
very close attention to mil-
lennials and adapt their business model
to meet the needs of this large segment,
which often involves evaluating the us-
ability of their website and finding new
ways to communicate with customers,
such as through the use of email, apps
and online chat.”
Monet says that insurers benefit the
most when their Gen Y customers are
well-informed and don’t experience ser-
vice problems with their policies.
According to the J.D. Power 2014 U.S.
Household Insurance Study, Amica Mutual (839) ranks the highest in the homeowners insurance segment, followed
by Auto-Owners Insurance (829), State
Farm (813), Erie Insurance (810) and
American Family (805). USAA (903),
which is available only to military personnel and their families, is not included
in the rankings.
For renters insurance, Geico (811)
performed well in the policy offerings,
price/billing and payment factors. State
Farm (810) had high ratings for the interaction factor.
Gen Y isn’t happy
By Patricia L. Harman, PropertyCasualty360.com
Insurers in one or all of these
categories need to pay very
close attention to millennials
and adapt their business
model to meet the needs
of this large segment, which
often involves evaluating
the usability of their website
and finding new ways to
communicate with customers…