Increasing Generation Y’s Satisfaction with Insurers
Anthony O’Donnell, executive editor of Insurance Innovation Reporter, posted an interesting piece relatively recently about Generation Y’s improved satisfaction with auto insurance. He interviewed Valerie Monet, director of the insurance practice at J.D. Power, about the firm’s latest “U.S. Auto Insurance study.”
Auto insurance customer satisfaction has reached an all-time high in the U.S., according to J.D. Power, with satisfaction among Generation Y customers increasing significantly more than the satisfaction of the other generations.
Monet notes that although part of the Generation Y rise in satisfaction can be attributed to better online servicing, there is still room for improvement among insurers – and it’s important to note that the study looked solely at auto insurance.
“It could be that the improvements that insurers have made are resonating more with Gen Y customers, but the increase in satisfaction could also be associated with an increase in understanding of the products and services, as this generational group matures,” she says.
There is still much more that insurers can do to “wow” Generation Y. Breaking down some of the old barriers is a good place to start. Self-employment is common among Generation Y, but insurance policies are still often constrained by traditional divisions between “personal” or “commercial” business.
A small business owner doesn’t want complexity in her insurance arrangements – she has more pressing challenges. The insurer that can offer a policy that provides desirable coverage for a customer’s home, car and family, as well as her business and handful of employees (several of whom are likely to be relatives), has provided an attractive proposition.