Insurers are having trouble interacting with Millennials
Homeowners insurance companies may be failing to meet consumer expectations when it comes to interaction, according to a new study released by J.D. Power, a global marketing research and information services firm. The study highlights “Gen Y” consumers, typically referred to a Millennials, as having the lowest satisfaction with insurers and their ability to interact with consumers. This demographic typically represents those born in the early 1980s and early 2000s and these people are becoming first-time homeowners and have high expectations of the companies that they engage with.
Satisfaction is on the decline as Millennials find it difficult to communicate with insurers
According to the study, insurers are lacking when it comes to interaction. The study examines customer satisfaction concerning interaction in five aspects: Non-claim interaction, policy offering, the cost of coverage, billing and payment, and how claims are handled. Satisfaction is rated on a 1,000 point scale. Notably, Millennials have become significant dissatisfied with the services that they are reicing from homeowners insurance companies, with satisfaction falling from 757 to 745 in 2014.
Non-claim interaction is one of the aspects of interaction that Millennials are most dissatisfied with
Non-claim interaction, which involves the availability and accessibility of local insurance agents or brokers, call center representation, and web presence, is one of the major complaints that Millennials have when it comes to interaction. Being able to communicate with insurers effectively has become relatively difficult for consumers and insurers are having trouble finding ways to engage this demographic effectively.
Finding new ways to engage consumers is becoming more important
J.D. Power’s Valerie Monet notes that insurers need to find better ways to educate consumers about the issues they have when they interact with a company. Providing information on how to file claims and raising awareness about policy offerings could be a major benefit for homeowners insurance providers, but establishing a comprehensive web presence is also quite important. Insurers without a presence on the Internet may find it difficult to effectively connect with Millennials, who have a strong favor for the Internet and all things digital.