What’s going to happen in the next ten years as today’s 20-30 year olds become middle and senior management decision makers?
A JD Power Survey on auto insurance and consumers being less satisfied with companies shows some interesting trends, including these stats that you may want to consider as you decide how much to invest in insurance internet marketing strategies. The study refers to auto insurance as an example, but we think the numbers translate to overall trends in internet and search for most lines of insurance including commercial lines.
Younger Customers Less Price Sensitive, Use Web More
The study reveals that significant differences exist among customers in different age groups. For instance, the following trends are observed about Generation Y auto insurance shoppers (those born between 1977 and 1992):
- Generation Y shoppers tend to be less sensitive to price, as only 68 percent cite price as a reason for shopping for a new auto policy, compared with 83 percent of Baby Boomer shoppers (those born between 1946 to 1964).
- More than one-half (58%) of Generation Y shoppers have used insurers’ Web sites to gather information when shopping for auto insurance, compared with 46 percent of Baby Boomer shoppers.
- Generation Y shoppers are substantially more likely to gather quotes directly from an insurer’s Web site—48 percent—compared with 28 percent of Baby Boomers.
- A slight majority (51%) of Generation Y new buyers purchased their auto insurance direct from the insurer, rather than through a local agent, compared with only 36 percent of Baby Boomers.
“Generation Y is the next big wave of new homeowners and parents with more complicated insurance needs,” said Bowler. “As a result, it’s important for insurers to understand the differences between Generation Y and Baby Boomer insurance shoppers and respond to these differences accordingly. At more than 70 million strong, this group will have a dramatic impact on the insurance distribution landscape in the years ahead.”
Here is the complete article: http://www.jdpower.com/insurance/articles/2010-Insurance-Shopping-Study
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