While high net worth individuals represent a hugely important portion of an individual producer’s portfolio, it’s important for today’s producers to cater to tomorrow’s high net worth consumers as well. Millennials may not have a huge portion of the nation’s wealth yet, but they are well on their way to becoming the largest generation in the U.S.
As these young people progress in their careers, many will accumulate substantial investable assets. Financial professionals should reach out to these consumers now. Doing so will build relationships that lead to important sales down the line.
While many producers recognize the importance of communicating with millennial buyers, it’s not necessarily clear how to reach these consumers. The younger generation has its own tastes regarding life insurance sales, and producers will have to adjust their tactics to reach these important clients.
What millennials want
LifeHealthPro created a list of the factors that attract millennials to a producer, and every point highlighted the need for an instantly accessible and user-friendly website and online presence. Just a quarter of millennials will buy their insurance products from a local agency, according to a survey conducted by Effective Coverage. That means the majority of insurance transactions will happen online for these consumers. That shift puts pressure on producers to update their online presence in ways that attract the younger generation.
An opportunity for all producers
Local financial professionals might be concerned that this change in consumer tastes will jeopardize their business, because millennials will not provide the steady stream of local consumers they have relied on in the past. In fact, this change presents an opportunity for any financial professional who wants to expand his or her client base.
Because millennials and, increasingly, older consumers, are willing to conduct the entire insurance purchase process online, financial professionals can successfully make sales to consumers regardless of location.
In a 2014 study, LIMRA found that well over 40 percent of consumers begin their research process for insurance online. At the time, many people eventually sought direct interaction with a financial professional prior to making a purchase decision. That may change as more young people enter the insurance market and conduct more of their business online.
In response, producers should provide more information online and make it possible for consumers to confidently buy insurance without ever speaking to a financial professional directly. By becoming a trustworthy source of information, financial professionals can encourage consumers to pick them over other options.