Millennials to move life insurance shopping experience online

by Ryan Smith01 Jun 2016
Millennials will likely push a sea change in the life insurance industry by buying their insurance almost exclusively online, according to a new study.

A survey by Life Ant, a company that specializes in providing insurance quotes, found that nearly 70% of respondents between 18 and 39 said they would shop for life insurance online before consulting a financial advisor. Meanwhile, 60% of those 40 and older said they were more likely to consult a financial advisor to purchase life insurance than to use an online source.

According to Life Ant, while the millennial generation is making more money and becoming more established, millennials retain their desire to be more efficient by using online sources where possible.

“As this happens, the supply of clients for life insurance agents will dwindle, and the supply of clients looking to buy life insurance online will increase significantly,” Life Ant stated. “This could mean that the future life of insurance agents is not bright unless they adapt. The younger millennial generation has much more trust in current online resources.”

The survey results led Life Ant to conclude that the life insurance industry is in for “some drastic changes, including steep declines in business.”

“Life insurance agents may need to change the way they operate, especially because the old models will not last as technology advances,” Life Ant stated. “To provide better online life insurance services, Life Ant recommends that companies offer extensive educational material, high quality needs calculators, and other informative resources.”

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COMMENTS

  • by Jim Doyle 2016-06-01 3:17:20 PM

    The commoditization of financial services may not be serving everyone well. What I would like to know a little more about the surveey, is what sort of indepth needs analysis was recommended as part of the quote process. If the process was only a quote, then I wonder if the prospective insurance client would be adequately prepared when they meet with an advisor to talk about how much coverage and what type of coverage could be most appropriate for the current and future circumstances?

  • by Andrewski 2016-06-01 11:03:59 PM

    I give as much credence to this survey as we give to political pollsters, which is zero. Remember how the NDP were going to sweep in to power in BC, so said the pollsters? How about the Red Rose party and how they were going to take every seat in an Alberta election. Give us the parameters of this survey. How many respondents? What were the questions & how were they worded? Of course if you ask a bunch of financially illiterate Millenials how they are going to buy life insurance they are going to say, online. Poppycock.

  • by bruce 2016-06-10 1:23:38 PM

    they will never push the "buy now" button.