Why Millennials prefer buying Insurance online
India is home to the largest millennial population in the world. Yes, you heard that right! In India, millennials (Gen Y) make up for nearly 34% of the country's total population and 47% of its workforce. They’re digital-first, and lately, digital-only.
They’re accustomed to instant gratification - everything on-demand, right now. To people who’ve never waited in queues to book train tickets, a five-minute waiting period for a taxi booked online is long. Really long. Don’t even talk about 7 seconds of website load time where they’d immediately quit the tab than watch it finish loading.
This is why brands can no longer afford to roll with an offline model, even in an industry as staid and old-school as insurance. Today, more and more brands are transitioning to the digital realm to capture the attention of the most impressionable audience - millennials.
With high disposable incomes, millennials are quick to splurge on luxuries their parents would never spend on. However, that doesn’t mean they are not invested in building a stable and secure future. Only the approach has changed. While the traditional approach to purchasing insurance plans was offline, the modern approach of planning and buying insurance products has shifted online.
Anand Prabhudesai, the Co-Founder of Turtlemint, summed it up best::
"Millennials are extremely tech-savvy, and hence they research a lot before purchasing. They tend to read the information such as users' reviews or blogs available online as well as go through the videos and compare the products themselves. There is a lot of information available online, which influences the buying process of millennials."
The comfort and perks of researching, comparing products, and purchasing them via online platforms resonate with the tech-savvy mindset of millennials. These options are generally cost-efficient with 24x7 customer support.
The online model offers millennials the flexibility to compare the policy benefits of multiple insurance companies simultaneously and choose the best-suited option for their financial needs, saving them a lot of money in the process.
Five reasons why millennials prefer buying insurance online
In an era where millennials (in fact, a vast majority of customers) are habituated to conduct almost all their day-to-day transactions online, it only makes sense that they even purchase insurance policies online.
Here are four reasons why millennials prefer buying insurance online:
1. It is a hassle-free, DIY process
As we mentioned earlier, buying insurance plans online gives you the flexibility to research, compare, and then buy. Plus, millennials are attracted by the prospect of buying insurance plans that promise a hassle-free buying and claims settlement process.
In the offline model, most claims get rejected due to incomplete or incorrect details entered in the forms. Usually, customers aren't aware of the insurance policy's exact nature, tenure, and expected returns. On the contrary, online companies allow customers to download and view policy features, clauses, and benefits of their various insurance products. So, you always know what you're signing up for.
2. It is transparent
One of the best aspects of online insurance companies is that everything is transparent. You can check out a company's background, specific information about its products, the features and tenure, unique benefits, customer support policies, and FAQs on the company website itself - there’s no agent who’s trying to make you pick a particular package, or keeping some information off the table. Moreover, you can always look out for customer testimonials on the company site and check social media platforms/forums for insider reviews on insurance products.
3. More power to the customer
Here, you remain in control of the entire process, from researching to form filling and ultimately buying the product. Since you get all the relevant information on the company website, you are better equipped to make an informed decision. You can raise a claim at the click of a button, you can instantly upload necessary documents for the claim, and in a matter of a few hours, the claim will be settled. It couldn't get any easier!
4. Assured online customer assistance
Purchasing insurance policies can be tricky, especially if you aren't sure of your needs and financial goals. However, when you buy from online insurance companies, rest assured, you will get round-the-clock assistance via live chats and online support with company executives.
The customer assistance structure of online insurance companies covers everything - from recommending the best options to suit customer needs to sending timely notifications for premium payments and renewal dates. By taking the stress off your shoulders, such perks allow you to sit back, relax, and reap the benefits of your insurance plan when the time comes!
The bottom line is that Millennials are the residents of a highly interconnected digital web; hence, their outlook and approach to things, including insurance, is radical. It is all about keeping up with the changing times.