Marketing to Younger Generations
Projection: The Generations U.S. Population by Generation - 2020 Gen Z 79 Ages 2 to 20 Millennials 87 Ages 21 to 39 Gen X 66 Ages 40 to 55 Boomers 72 Ages 56 to 74 Silents 23 Ages 75 and over In Millions Source: U8 Census, 2014 National Population Projections 2
Defining Events for Millennials Generations are defined by common experiences. • Growth of the internet, search engines & information. Technology • Explosion in social networking and news sources • Ubiquity of mobile devices. • September 11, 2001 terrorist attacks. Terrorism & War • The Afghan war, which began in 2001, is the longest war in U.S. history! • Economic recession in 2001. Economic • Financial crisis of 2007 – 2009. • Worst economic period since the great depression Instability of 1929 – 1939. 2018 LIMRA Life Conference, Chicago, IL 3
Individual Life Distribution Trends 62% 72% 55% 65% 50% 50% 44% 44% 56% Before ’84, 47% 42% 41% buying in- In ’84, 6 -point 34% 32% person was gap identified presumed Gap is now 12-points 1960 1976 1984 1992 1998 2004 2010 2016 Owns Any Owns Individual Life Individual Life Bought In-Person Source: Life Insurance in Focus, LIMRA, 2016 4
Group Coverage More Common than Individual Buying via agents was Owns Group Life Owns Individual Life Owns Any Life* a shared experience among most 83% 83% 81% 78% 78% households. 76% 72% + 70% 70% 65% + Now, those working 62% with an agent (or 55% 54% 52% 52% 49% owning individual life) 46% 46% 53% are the minority. 50% 50% 44% 44% Very different context for modern shoppers! 1960 1976 1984 1992 1998 2004 2010 2016 *Includes Individual, Group, SGLI & VGLI + Individual Life Sold Face-to-Face through an Agent Source: 2016 Life Insurance Ownership in Focus - Households 5
Individual Life Ownership Trends by Age Households Under Age 35 All Households Big change in 50% 44% 44% 43% ownership trend among Millennials 33% 29% vs. Gen X. Most prefer to buy in-person. 2004 2010 2016 Source: Life Insurance Ownership in Focus, LIMRA, 2016 6
The Individual Life Purchase Funnel • 1-in-4 households recognize a need for Recognize life insurance in a 24-month period (31 Need million households). Seriously (25%) Shop (15%) Among those, just 58% move on to “shop” • Evaluate for coverage - 19 million households. Quotes (11%) The majority (72%) of “shoppers” move on • to apply for quotes - 14 million households. Purchase • Of those that apply for quotes, 66% go on Coverage to buy life insurance - 9 million (7%) households. The Purchase Funnel, LIMRA, 2017 7
Number Of Methods Used By Stage 1.53 1.19 1.1 Stage 2 (Shop) Stage 3 (Quote) Stage 4 (Purchase) The Purchase Funnel, LIMRA, 2017 8
Distribution Share By Purchase Stage 22% Stage 2 - 31% 33% Shop 32% 21% Stage 3 - 46% 17% Quote 34% 26% Stage 4 - 22% 13% Purchase 27% Phone Online Mail In-person Included: in-person, mail, online, phone. Excluded: banks, peer-to-peer, workplace, other. The Purchase Funnel, LIMRA, 2017 9
Purchase Funnel - by Age Households Under 35 All U.S. Households (millennials) 28% 25% Younger consumers are 16% slightly more 15% 12% prevalent in the 11% 9% 7% purchase funnel. Recognize Shop for Apply for Purchase Need Coverage Quotes Coverage Source: The Purchase Funnel, LIMRA, 2017 10
Stage 1 - Strongest Impression on Need for Coverage Households Under 35 All U.S. Households (millennials) Conversations with friend/relative Information in the mail A financial professional Information received at work Information in an email Don't remember Information received by phone Advertisements Information from a meeting/seminar 0% 5% 10% 15% 20% 25% Source: The Purchase Funnel, LIMRA, 2017 11
Stage 2 – Information Sources Used Percent ‘Very Helpful’ Information Sources Used I reviewed information I received through the mail 33% 46% I used at least one online source for information 31% 58% I met in-person with at least one Financial Professional 26% 82% I spoke by phone with at least one company directly 22% 61% I spoke with friends and family members 20% 56% I watched/listened to information on TV/radio 10% 44% I read information in newspapers and magazines 9% 49% I attended a seminar or meeting on life insurance 7% 60% The Purchase Funnel, LIMRA, 2017 12
Stage 2 – Information Sources Used Households Under 35 All U.S. Households (millennials) Used at least one online source Spoke with friends/family Met in-person with a financial professional information received through the mail Spoke with at least one life ins. co. directly Watched/listened to TV/radio Newspapers/magazines Attended a seminar 0% 10% 20% 30% 40% Source: The Purchase Funnel, LIMRA, 2017 13
Stage 3 - Method Used for Quotes by Age Households Under 35 All U.S. Households (millennials) Financial Professional Company website Group/Association website Over the phone Online aggregator Direct by mail 0% 10% 20% 30% 40% Source: The Purchase Funnel, LIMRA, 2017 14
Stage 4 – Purchase Method By Age 27% Phone 26% 14% Online 14% 19% Mail 22% 21% In-person 27% Under 35 All Households Included: in-person, mail, online, phone. Excluded: banks, peer-to-peer, workplace, other. The Purchase Funnel, LIMRA, 2017 15
Online Usage for Life Insurance by Generation Visited the website of a life insurance company Sought information about life insurance online Purchased/attempted to purchase life insurance online 54% 52% 52% 52% 45% 41% 40% 37% 33% 22% 20% 13% Millennials Gen X Boomers Silent Source: 2018 Insurance Barometer 16
Use of Comparison Quote Websites 2017 2018 53% 46% 32% 27% 16% 15% 6% 5% Used after researching Used before researching Used without researching Did not use elsewhere and insurance elsewhere insurance elsewhere getting a good idea of what I wanted Source: 2018 Insurance Barometer 17
Likelihood to Buy - Simplified Underwriting (SUW) 52% are more likely to buy via SUW, than via traditional UW. Source: 2018 Insurance Barometer 18
Likelihood to Buy via SUW by Life Ins. Ownership SUW is most appealing to those who own group coverage. Source: 2018 Insurance Barometer 19
Consumer Appeal of Simplified Underwriting Fast & easy 72% No medical exam 65% Most appealing Transparent pricing 65% benefit of SUW = fast and easy Unbiased & objective 65% process. No Dr. visit 63% No face-to-face 45% Source: 2018 Insurance Barometer 20
Top Financial Goals Gen Z (16 & 17) Millennials (18 - 22) 97% Financial independence 97% 95% Graduate from college 94% 59% Start a business 56% Source: Discovering Gen Z, LIMRA, 2017 21
Gen Z Financial Goals • “I want to major in Industrial Design to be able to create my own inventions.” Voice of • “I want to make a business Gen Z and work on my own because I don’t like following rules….When I feel I am ready, I will create a business of my own.” Source: Discovering Gen Z, LIMRA, 2017 22
Top Financial Concerns Gen Z (16-17 years) Millennials (18-22 years) 50% Student loans 45% 43% Getting a full-time job 49% 43% Achieving financial goals 51% 40% Future 52% 34% Financial knowledge 41% 30% Money management skills 37% Source: Discovering Gen Z, LIMRA, 2017 23
Young Consumer Financial Concerns Voice of Millennials • Start learning about finances before college. It will help you...especially with student loans. • Learn how to budget, keep on track, pay off loans early, and you can be financially independent sooner.” Voice of Gen Z • The way you budget your money determines the lifestyle you’ll have. : Discovering Gen Z, LIMRA, 2017 24
Financial Decision Influencers Gen Z (16-17 years) Millennials (18-22 years) 63% Opinions of parents/family 55% 18% Online ratings/reviews 23% 16% Opinions of friends/peers 22% 7% Online personalities/YouTube/blogs 11% Source: Discovering Gen Z, LIMRA, 2017 25
Topics Gen Z Discuss With Parent Saving money 96% College funding 82% Budgeting 79% Credit card 75% Auto insurance 73% Loans 57% Health insurance 56% Benefits at work 50% Life insurance 29% Source: Discovering Gen Z, LIMRA, 2017 26
Topics Gen Z Discuss With Parent Voice of Millennials • It is vital for parents to talk about finances… teach kids how to save and spend money, even their allowance and birthday money. Voice of Gen Z • I found a personal finance course helpful in choosing a career, finding its base salary and trying to plan a successful lifestyle. It was a great way to see how well you can budget and plan for the future. Source: Discovering Gen Z, LIMRA, 2017 27
Social Media Used for Reviews Gen Z (16-17 years) Millennials (18-22 years) 73% YouTube 79% 55% Facebook 56% 48% Instagram 47% 43% Snapchat 36% 34% Twitter 38% 31% Google+ 26% 24% Pinterest 27% 8% Tumblr 14% 6% LinkedIn 10% : Discovering Gen Z, LIMRA, 2017 28
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