Innovation is a tricky and complex terrain; social media is trickier. According to the Khoros’ 2022 Social Media Demographics Guide, 42 % of the world’s population is using social media. Wondering how social media affects insurance? For insurers, this offers an opportunity to understand the audience characteristics of specific networks that are relevant to them — this is why we need to focus on why Gen Z and millennials are relevant. The reality is that digital-native millennials and Gen Z are already entering major life stages that require coverage as a basic and essential need.
The World Economic Forum observes that millennials stay logged on to social media for an average of two and a half hours a day whereas Gen Z logs on for more than four hours every day! It’s time for insurers to innovate rapidly to respond to the buying preferences of members of these generations and reach out to them through social media networks.
How Social Media Powers the World of Millenials and Gen Z
According to a report in Social Media Today, around 90% of millennials prioritise authenticity as being of utmost importance to them while deciding which brands to purchase or support. Interestingly, a HubSpot report indicates that 42% of millennials are keen to help companies create and develop future products or services. A clear message here is that millennials want to be involved with the entire process of how products are created. Insurers need to nurture close ties and engage with them to ensure that their products turn out to be more successful.
No wonder, a global soft drink manufacturer opted for creating an online co-creation methodology to breathe life into its brand promise of “Energising refreshment.” The audience were prompted to come up with their own creative inputs as to how it is an energising drink to consume. This was one of the most notable social media campaigns that tapped directly into the positive experiences of consumers and fuelled a collective demand for more.
Understanding Millennials and Gen Z through an InsurTech Lens
Stepping back to examine most consumer spending patterns, these are largely driven by their social circles or by those a consumer trusts in person or online, or sometimes even based on recommendations of strangers who share their feedback on social networks. They prefer to trust authentic opinions from real consumers whom they can relate to.
A few interesting nuggets of information based on the Pew Research Centre’s study are as follows:
More than 93% of millennials own smartphones
Around 86% of millennials use social media networking sites
Around 53% of millennials say they own tablets
Authentic and contextual experiences are valued by tech-savvy millennials and Gen Z, and this is an aspect that tends to be overlooked in conventional frameworks including insurance.
The growing preference for embedded insurance solutions among millennials and Gen Z in India highlights the importance of simple, easy and convenient embedded solutions at the point of sale, be it while booking a flight ticket online or buying a phone at a retail store.
Consider flights and air travel, digital banking, and fintech services, for instance. Consumers are willing to pay a premium for the convenience and added benefit of being offered contextual solutions that are personalised in terms of relevance, relatability and pricing.
By tapping into new customer pools by weaving their offerings directly into the purchase of consumer products at the exact moment when customers are most likely to buy coverage, the right opportunity presents a clear win-win model for InsurTechs.