What Do Marketers Really Know About Millennials?

What Do Marketers Really Know About Millennials?

It seems like marketing is all about Millennials, but who are these Millennials, anyway? You know that Millennials are people born between 1982 and the two decades after that. You know that Millennials matter to your business. After all, they're young adults with families, or they're emerging into adulthood. They are a perfect audience for insurance marketing. When you're marketing your insurance products, it's tempting to pull all Millennials into the same box, but you need to understand that like any generation, Millennials come from diverse social groups. Here's how to market to this diverse group of youth and adults.

Be Family Friendly

Millennials are older than you think they are. Many of them have families, and they're searching for insurance for their rental home or for their first purchased home. They need auto insurance for the family vehicle as well. Just as you target Baby Boomers in your advertising, you need to target Millennials with young families. According to the American Marketing Association, "Millennial parents incorporate their pre-parenting activities and interests into their lives." They're defined by their activities more than what they own, and they like to connect online and share what they're doing with friends. Your insurance marketing needs to take advantage of this by showing how you can protect today's adventurous young families and by reaching out to them online.

Understand the Needs of the Youth Market

In the middle segment of the Millennial generation is a group that's entering, experiencing, or leaving post-secondary education. They're moving into the rental market for the first time, and they are likely looking for insurance for the first time as well.

How do you market to those who are entering the insurance market? Not in the way that you used to market: according to Forbes, Millennials "don't respond to the salesperson following them around screaming about how great their products are." Instead, reach out to Millennials through content that you've created to help them, and build a relationship rather than focusing on selling a product. It's through this relationship that you'll find and target your market.

Connect With Millennials When They're Young

Some Millennials are still teens, and they're moving into the world of insurance under their parents' wings. They're not renting yet, and they still fall under their parents' home insurance plan. They're new to driving, and they are still using their parents' vehicles. While the youngest Millennials may not be your prime insurance marketing audience, they will be one of these days, and you need to get ready. Offer educational opportunities, information, and insurance products for parents. For example, you could remind parents to ensure their children's sports equipment or provide an education seminar for parents with new drivers.

Create Convenience

Young families are busy, and youth also have the expectation that they'll be able to do business online. This is a unifying factor for many Millennials. As you market to this group, remember that the more you can do online, the more your business will attract a Millennial audience. Your Millennials audience will look at your business reviews online, ask questions online, pay for insurance online, and access their accounts online. You need to emphasize how your online customer portals are convenient for each Millennial audience.

E&O Prevention Tip - Will Your Files Help or Hurt?

February 06, 2017 | By Christie American Agents Alliance


A formal quality control program including a written office procedure manual should be one of the cornerstones of your agency's risk management program to prevent the risk of an E&O claim.

Claim Scenario:  An agency's customer claimed the agency had committed an error in handling his insurance and retained an attorney who subpoenaed "any and all" of the agency's customer files for review. The attorney's goal was to determine whether there were discrepancies in the manner in which the agency handled their client's insurance needs. The agency had no written procedures regarding file handling or business processing, and no formal internal quality control or auditing program to monitor adherence to such procedures. Without formal procedures in place the agency was unable to effectively object to the breadth of the subpoena, resulting in over 1000 customer files being turned over to the claimant's attorney. After reviewing and comparing those files to the claimant's, the attorney discovered multiple inconsistencies in file documentation including the manner in which coverages were offered, written, and documented. As a result he was able to present a compelling case that the agency had discriminated against and breached its duty to the client at trial, resulting in a large adverse verdict against the agent.

Risk Management Tip:  Your agency's file documentation is often its first and best line of defense in the event of a claim. This loss could have been avoided had the agency developed, implemented and monitored an internal quality control (QC) program including office procedures regarding documentation of the processing of business. QC Procedures should cover subjects including binders and certificates of insurance, records management and disposal, telephone, claims handling, mail and e-mail, and cash management to name a few. Your quality control program should also include standardized form letters and in-house forms regularly used by the agency. Even with such procedures in place, the agency must be able to prove that they are followed consistently by all employees and that compliance is monitored on a regular basis.

E&O Prevention Tip: Coverage Reductions Can Increase E&O Exposure

December 01, 2016 | By American Agents Alliance

Did you know that coverage reductions can increase your E&O exposure? 

A local nightclub asked its agent to reduce its contents coverage mid-term from $500,000 to $325,000. The carrier did so and issued a premium refund, which was cashed by the client. After policy renewal the restaurant was totally destroyed by a fire, and the carrier tendered it's $325,000 policy limit. The client sued the agent claiming that he hadn't read the new policy, believed the refund was due to several autos being removed from a personal auto policy, and that he had never requested a reduction in limits. The agent had failed to document the client's reduction request, and at trial the jury held for the plaintiff awarding $175,000 plus interest.

What can you do to prevent this?

During tough economic times a client's change in exposure or concerns over premium costs may justify a reduction in coverage. Regardless of the circumstances behind a reduction, agencies must act proactively to protect themselves with documentation. When a client has suffered an economic loss his memory often differs from that of his agent. While the client may or may not actually recall requesting the reduction, an agent will always be at risk if they have not clearly and consistently documented that the client is aware of the reduction and of the risks involved in the event of a loss. In the event of a claim, failure to do so presents a jury with a "he said, she said" scenario and allows the claim to be decided based upon relative credibility, as determined by a panel of laymen, rather than fact and law.