More than half of Millennials say that insurance companies are more trustworthy now then they were five years ago, according to new research from Mintel.
The 53% of Millennials compares to 31% of consumers overall.
Three of five Millennials trust insurance companies to do what’s right for their customers (61%) and agree insurers are interested in keeping customers healthy (58%).
“Insurers should be taking advantage of this positive outlook and doing what they can to build and retain relationships with Millennials as their insurance needs will only grow over time,” said Robyn Kaiserman, senior financial services analyst at Mintel, in a release.
While Millennials may be a bright spot for the industry, insurance providers still have work to do in order to improve their image among women: only one-quarter (26%) of women view insurance companies as more trustworthy now than they were five years ago (vs 36% of men). While about half (49%) of men trust insurance companies to do what’s right for their customers, just 42% of women agree.
Mintel research reveals that insurance providers may be able to build trust through establishing personal connections with consumers, as 56% of consumers agree that insurance agents are the best source of information about insurance options.
Although price remains a primary deciding factor when shopping for insurance providers, Mintel research reveals that nearly three in five (57%) Millennials agree that the availability of innovative products is more important than premium costs when choosing a policy (vs 33% of consumers overall). And it appears that innovation is already resonating with this demographic as 63% of Millennials agree that insurance companies tend to offer innovative products compared to less than half (48%) of consumers overall.
Consumers are willing to adopt the latest tech innovation when incentives are part of the deal, as 65% of consumers would use a fitness tracker if they received an incentive. Another 52% of consumers are interested in using a device that tracks health-related behavior, while two in five (43%) are interested in using a device that allows their insurance company to monitor their driving habits.
The most sought-after tech features from insurance providers are text alerts, including those that inform consumers that their bill will be due soon or of the status of their claim (38% respectively). Consumers also show interest in transactional tools, including mobile apps that allow them to file claims or pay their premium (29% respectively).
However, the benefits of insurance apps may be largely unknown as less than one in five (18%) consumers with auto insurance have downloaded a mobile app linked to their insurance policy. Mintel research reveals even less have downloaded apps for health insurance (15%), life insurance (14%) and homeowners insurance (10%).