WHY MILLENNIALS MATTER

THE FASTEST-GROWING GENERATION OF CONSUMERS AND EMPLOYEES IS MILLENNIALS. INDIVIDUALS BORN BETWEEN THE YEARS OF 1980 AND 1996, THEY ARE THE FOCUS OF NEWS COVERAGE, POLITICAL CAMPAIGNS, MARKETING DISCUSSIONS AND EMPLOYMENT POSTINGS. MILLENNIALS HAVE CAPTIVATED THE CONSUMER MARKETPLACE AND ARE BECOMING THE WORKFORCE OF THE FUTURE. I AS MILLENNIALS PROLIFERATE AS CUSTOMERS, BUSINESS PARTNERS AND EMPLOYEES, THEY BRING THEIR OWN UNIQUE SET OF VALUES AND EXPECTATIONS TO THE MARKET. FOR INSURANCE AGENCIES, THE RISE OF MILLENNIALS REQUIRES STRATEGY IN THE WAY THEY ATTRACT, SERVE AND RETAIN THIS YOUNGER GENERATION. POWER IN NUMBERS I MILLENNIALS ARE CURRENTLY THE LARGEST GENERATION: 76.6 MILLION I MILLENNIAL PURCHASING POWER: $1.68 TRILLION AVERAGE HOUSEHOLD INCOME OF A MILLENNIAL: $60,000 I EXECUTIVE SUMMARY I TODAYS, AGENTS MUST LEARN TO MEET MILLENNIAL EXPECTATIONS AND DEMANDS WITH INNOVATIVE TECHNOLOGY, BUT ALSO REMAIN A TRUSTED ADVISOR. AN INDEPENDENT SURVEY AND MILLENNIAL AGENT INTERVIEWS PROVIDE INSIGHT INTO HOW THE MILLENNIAL GENERATION IS SHAPING THE INSURANCE INDUSTRY, NOT ONLY AS NEW EMPLOYEES IN THE WORK-FORCE, BUT ALSO AS ONE OF THE FAST-GROWING DEMOGRAPHICS OF CONSUMERS PURCHASING INSURANCE.

UNDERSTANDING THE MILLENNIAL CONSUMER I MILLENNIAL SURVEY: STRIKE A BALANCE BETWEEN TECHNOLOGY AND TRUSTED ADVISOR I MILLENNIAL CUSTOMERS ARE ATTRACTED TO INSURANCE COMPANIES WHO PROVIDE THE CUSTOMER- CENTRIC EXPERIENCE THEY HAVE BECOME ACCUSTOMED TO WITH OTHER INDUSTRIES AND BUSINESSES. HOWEVER, MILLENNIALS STILL HIGHLY VALUE AN IN-PERSON OR OVER-THE-PHONE EXPERIENCE WITH AN AGENT. I APPLIED SYSTEMS SPONSORED A SURVEY CONDUCTED AMONG A SAMPLE OF 1,000 ADULTS BETWEEN THE AGES OF 18 AND 34. THE FINDINGS ILLUSTRATE HOW RESPONDENTS SHOP FOR INSURANCE COVERAGE AND INTERACT WITH THEIR INSURANCE COMPANIES. I OUT OF THE 1,000 SURVEY RESPONDENTS: 91% HAD SOME FORM OF P&C INSURANCE COVERAGE 89% HAD AUTO INSURANCE 55% HAD HOMEOWNERS 42% HAD RENTERS MULTICHANNEL OPTIONS ARE NEEDED TO SELL INSURANCE I OF THE 89% OF MILLENNIALS SURVEYED THAT HAD AUTO INSURANCE: 37% PURCHASED IN PERSON 35% PURCHASED ONLINE 28% PURCHASED OVER THE PHONE FINDINGS: MILLENNIALS SPLIT THEIR AUTO INSURANCE PURCHASES BETWEEN IN-PERSON, ONLINE AND TELEPHONE SALES. INDEPENDENT AGENTS MUST HAVE AN EFFECTIVE ONLINE PRESENCE, OR THEY STAND TO LOSE A LARGE SEGMENT OF THE MARKET. THESE RESULTS ALSO INDICATE THAT THE ROLE OF THE AGENT AS

A NEW GENERATION FOR INSURANCE I ACCORDING TO THE U.S. BUREAU OF LABOR STATISTICS AND AARP, WITHIN 15 YEARS AS MUCH AS 50% OF THE CURRENT INSURANCE WORKFORCE WILL RETIRE. WITH A SEGMENT OF THE WORK-FORCE ON THE VERGE OF RETIREMENT, INDEPENDENT AGENCIES NEED TO RECRUIT A NEW GENERATION OF TALENT BUT TO DO THAT, MILLENNIALS NEED SOME CONVINCING THAT INSURANCE IS AN INNOVATIVE AND REWARDING CAREER TO CONSIDER. I THE PERCEPTION AMONG SOME RISING YOUNG PROFESSIONALS IS THAT INSURANCE IS SUITED MORE FOR AN OLDER WORKFORCE, WHILE OTHERS HAVE LITTLE OR NO FAMILIARITY WITH THE INDUSTRY. I FAMILIARITY WITH THE INSURANCE INDUSTRY 42% NOT AT ALL FAMILIAR 36% NOT TOO FAMILIAR 17% SOMEWHAT FAMILIAR 5% VERY FAMILIAR I WHILE THERE CAN BE SOME RELUCTANCE BY MILLENNIALS TO PURSUE AN INSURANCE CAREER, INDEPENDENT AGENCY EMPLOYERS I CAN MAKE A STRONG CASE WITH THESE THREE POINTS: 1. INSURANCE IS EVOLVING WITH TECHNOLOGY - INSURANCE BUSINESSES ARE INCORPORATING MODERNIZED TECHNOLOGY THAT TRANSFORMS THEIR OPERATIONS. 2. INSURANCE IS DRIVEN BY SERVICE - THE INSURANCE INDUSTRY SERVES AN IMPORTANT COMMON GOOD BY PROTECTING INSUR EDS ASSETS. THE FUNDAMENTAL PURPOSE AND PROMISE OF THE INSURANCE INDUSTRY - TO PROTECT WHAT

THE TECHNOLOGY PREFERRED BY MILLENNIALS I A COMMON DENOMINATOR AMONG MILLENNIALS IS THE NEED TO BE CONSTANTLY CONNECTED TO THE WORLD AROUND THEM. DIGITAL TECHNOLOGY IS AN INTEGRAL PART OF THEIR LIVES ON A VARIETY OF DEVICES WITH NUMEROUS APPS. MILLENNIALS ARE DRIVEN BY A NEED TO INTEGRATE EVERYTHING THEY DO INTO THEIR OWN ENVIRONMENT. I MILLENNIALS ALSO WANT TO STAY CONNECTED TO THEIR FRIENDS AND CO-WORKERS AT ALL HOURS, THROUGH TEXTING AND SOCIAL MEDIA. THE ABILITY TO MULTITASK AND SHARE RELEVENT INFORMATION IS ESSENTIAL TO THE MILLENNIAL’S PRODUCTIVITY. CONSUMER TECHNOLOGY IS ENTERING THE WORKPLACE, AND THERE IS STRONG DEMAND FOR PERSONAL TECHNOLOGY TO INTERACT WITH CORPORATE SYSTEMS. 90% OF MILLENNIALS EMAIL, TEXT AND CHECK SOCIAL MEDIA BEFORE THEY EVEN GET OUT OF BED 87% HAVE A FACEBOOK ACCOUNT, 41% UPDATE THEIR STATUS DAILY I 90% SHOP ONLINE, 57% SHARE EMAIL ADDRESSESTO GET DISCOUNTS I SMART-PHONES ARE THE DEVICE OF CHOICE, FOLLOWED BY LAPTOPS, THEN TABLETS I KEEP MILLENNIALS CONNECTED TO YOUR BUSINESS I TO ATTRACT AND RETAIN MILLENNIALS, INDEPENDENT AGENCIES MUST IMPLEMENT TECHNOLOGY THAT SUPPORTS BOTH PRODUCERS AND PROSPECTIVE

UNDERSTANDING THE INSURANCE INDUSTRY’S FASTEST-GROWING CONSUMER BASE AND WORKFORCE

WHAT IS THE MILLENNIAL GENERATION? ALSO REFERRED TO AS GENERATION Y OR THE YAYA DEMOGRAPHIC, MILLENNIALS HAVE STRONG OPINIONS, DEMANDS AND HIGH EXPECTATIONS OF ALL BUSINESSES, INCLUDING THEIR EMPLOYER. THEY WILL HAVE A GREAT DEAL OF INFLUENCE ON THE PROFITABILITY OF INSURANCE AGENCIES NOW, AND FOR YEARS TO COME. DEMOGRAPHIC STATISTICS CONCERNING US MILLENNIALS I ONLY 21% OF MILLENNIALS ARE MARRIED, WHILE 42% OF BOOMERS WERE MARRIED AT THEIR AGE 1 IN 4 HAVE A BACHELOR’S DEGREE OR HIGHER, MAKING THEM THE MOST EDUCATED GENERATION I MILLENNIALS ARE THE MOST ETHNICALLY AND RACIALLY DIVERSE GENERATION I 38% OF MILLENNIALS ARE BILINGUAL I MILLENIALS LIVE IN URBAN ENVIRONMENTS, DISAVOWING THE SUBURBAN PICKET-FENCE MYTHOLOGY I MOST NOTABLY, MILLENNIALS ARE TRUE DIGITAL NATIVES, AND TECHNOLOGY AND SOCIAL NETWORKING ARE INHERENT TO THEIR NATURE. IACCORDING TO THE YAYA CONNECTION: I MILLENNIALS NAVIGATE SEAMLESSLY BETWEEN DEVICES I ALWAYS CONNECTED, MILLENNIALS SEND UPWARDS OF 100 TEXTS A DAY I 80% OF MILLENNIALS VISIT SOCIAL MEDIA SITES DAILY AND MORE THAN HALF USE MOBILE DEVICES TO DO SO. AN ONLINE SEARCH IS THE FIRST STOP TO FINDING A SOLUTION FOR 71 % OF MILLENNIALS. ONCE THEY GO ONLINE FOR SUPPORT, MILLENNIALS EXPECT A

MILLENNIALS ARE EVOLVING I THE INDUSTRYTODAY, THE MILLENNIAL GENERATION IS SHAPING THE INSURANCE INDUSTRY, NOT ONLY AS NEW EMPLOYEES IN THE WORKFORCE, BUT ALSO AS ONE OF THE FAST-GROWING DEMOGRAPHICS OF CONSUMERS PURCHASING INSURANCE. AS BUYERS AND SELLERS OF INSURANCE, MILLENNIALS ARE INFLUENCING HOW THE INDUSTRY OPERATES AND BRINGS PRODUCTS TO MARKET. I THE IMPACT OF TECHNOLOGY ON THE INSURANCE INDUSTRY TO SUPPORT THE ROLE OF THE TRUSTED INSURANCE ADVISOR, INDEPENDENT AGENCIES ARE DEPLOYING INNOVATIVE TECHNOLOGY SOLUTIONS, INCLUDING CLOUD-BASED AGENCY MANAGEMENT SYSTEMS, ONLINE CUSTOMER PORTALS, AND REMOTE-ACCESS SOLUTIONS. I OFFERING MULTICHANNEL ENGAGEMENT THROUGH DIGITAL TECHNOLOGY ALLOWS AGENTS TO ATTRACT & RETAIN MILLENNIALS CUSTOMERS AND EMPLOYEES. I BY ACTING AS A TRUSTED ADVISOR AND PROVIDING THE TECHNOLOGY MILLENNIALS SEEK, INDEPENDENT AGENTS ARE BUILDING A TECHNICALLY SAVVY, WELL-CONNECTED WORKFORCE, SUPPORTED WITH ROBUST, MODERNIZED SYSTEMS THAT ATTRACT AND RETAIN THE EMERGING MILLENNIAL CUSTOMER BASE. UNDERSTANDING THE VALUES, WORK REQUIREMENTS AND PURCHASING HABITS OF MILLENNIALS ENABLES AGENCIES TO EVOLVE THEIR OPERATIONS AS THIS GENERATION

WHY MILLENNIALS MATTER TABLE OF CONTENTS

Introduction

PG 3 Millennials and their impact on the insurance industry

PG 4 Executive summary

Chapter 1

PG 5 Who are millennials and why do they matter to your business?

What is the millennial generation?

PG 6 Millennials: A challenge and opportunity for agencies

PG 7 What to expect from millennials

Chapter 2

PG 8 Understanding the millennial consumer: An Applied Systems sponsored survey

PG 9Homeowners: Millennials need a trusted advisor

PG 10Communication channel results

Chapter 3

PG 11 A new generation: Turning millennials toward insurance

PG 12 Millennials are transforming the workplace

PG 13 Top 4 career goals of millennials

PG 14 How to recruit and retain millennials

PG 15 Millennial employees understand millennial consumers

Chapter 4

PG 16 The technology preferred by millennials

PG 17 Keep millennials connected to your business

PG 18 6 Benefits of multi-channel engagement

PG 19 5 Steps to win the millennial consumer

Conclusion

PG 20 Millennials are evolving the industry

The impact of technology on the insurance industry

PG 21 Works cited

2

WHY MILLENNIALS MAT TER

MILLENNIALS AND THEIR IMPACT ON THE INSURANCE INDUSTRY

The fastest-growing generation of consumers and employees is millennials. Individuals born between the years of 1980 and 1996, they are the focus of news coverage, political campaigns, marketing discussions and employment postings. Millennials have captivated the consumer marketplace and are becoming the workforce of the future.

As millennials proliferate as customers, business

partners and employees, they bring their own

unique set of values and expectations to the market.

For insurance agencies, the rise of millennials

requires a strategy in the way they attract, serve

and retain this younger generation.

INTRODUCTION

POWER IN NUMBERS

Millennials are currently the largest generation:

76.6 million

Millennial purchasing power:

$1.68 trillion

Average household income of a millennial:

$60,000

Source: CEB Iconoculture Consumer Insights Fast

Facts (2013). U.S. Census Bureau. October 2013.1

WHY MILLENNIALS MAT TER

3

4

WHY MILLENNIALS MAT TER

EXECUTIVE SUMMARY

Todays’ agents must learn to meet millennial expectations and demands with innovative technology, but also remain a trusted advisor. An independent survey and millennial agent interviews provide insight into how the millennial generation is shaping the insurance industry, not only as new employees in the workforce, but also as one of the fast-growing demographics of consumers purchasing insurance.

The following report discusses the results of the survey and includes interviews with leading millennial agents, examining both the millennial consumer and employee.

How millennials research and purchase property and casualty (P&C) insurance

Millennial concerns and behaviors regarding the insurance industry

Technologies that enable the independent agent to reach and connect with these consumers

The evolution of the insurance agency as millennials proliferate in the workplace

REPORT INCLUDES:

5

WHY MILLENNIALS MAT TER

> Millennials navigate seamlessly between devices

> Always connected, millennials send upwards of 100 texts a day

> 80%of millennials visit social media sites daily and more than half use mobile devices to do so

> An online search is the first stop to finding a solution for 71%of millennials

> Once they go online for support, millennials expect a resolution within 80 hours

> Millennials are 2.5 times more likely to be early technology adopters than older counterparts

MOST NOTABLY, MILLENNIALS ARE TRUE DIGITAL NATIVES, AND TECHNOLOGY AND SOCIAL NETWORKING ARE INHERENT TO THEIR NATURE. ACCORDING TO THE YAYA CONNECTION:3

Millennials are transforming how insurance agencies operate, from how to market their products and services to providing multichannel client touch points. The millennial generation includes approximately 80 million individuals born after 1980 and has surpassed the Baby Boomer generation in size. They use mobile devices more than any other generation and are constantly connected to the world around them.

What is the millennial generation?

Also referred to as Generation Y or the YAYA demographic, millennials have strong opinions, demands and high expectations of all businesses, including their employers. They will have a great deal of influence on the profitability of insurance agencies now, and for years to come.

WHO ARE MILLENNIALS AND WHY DO THEY MATTER TO YOUR BUSINESS?

CHAPTER 1

38%ARE BILINGUAL

HAVE A BACHELOR’S DEGREE OR MORE, MAKING THEM THE MOST EDUCATED GENERATION

MILLENNIALS LIVE IN URBAN ENVIRONMENTS, DISAVOWING THE SUBURBAN PICKET-FENCE MYTHOLOGY

ONLY 21% OF

MILLENNIALS ARE MARRIED1 IN 4

BOOMERS WERE MARRIED

AT THEIR AGE

42%OF

Demographic Statistics Concerning U.S. Millennials

Nielson Research, February 20142

> >

6

WHY MILLENNIALS MAT TER

Millennials: A challenge and opportunity for agencies

As buyers and sellers in the insurance industry, millennials present a new challenge to independent agencies with their unique characteristics, attitudes, preferences and appetite for digital technology. As a historically conservative industry, insurance agents often experience a generational gap when dealing with millennial consumers. But understanding how they think, work and purchase differently from previous generations will allow insurance agents to leverage their unique influence as millennial numbers continue to grow.

Millennials grew up during the height of globalization of the Internet and expansive developments in communications technology. They have also come of age during unprecedented shifts in business, political and cultural norms and the rise of social media. To be successful in servicing this generation, insurance agents must offer multichannel service and product options.

“ By 2020, Millennials will comprise more than one of three adult Americans. It is estimated that by 2025 they will make up as much as 75% of the workforce.” Morely Winegold

Brookings Senior Fellow University of Southern California5

How millennnials communicate their opinions about services, products and brands: Source: Goldman Sachs4

44%Text Message 38%

16%

38%Instant Messaging

Blogging

Social Media

WHEN WORKING WITH THIS GENERATION, INSURANCE AGENTS, BROKERS AND CARRIERS CAN EXPECT THE FOLLOWING:

“ Millennials grew up in an expanding world of choice and options for just about everything they ever needed or wanted. Because of this, they view life very differently.”

Katie Elfering Consumer Strategist CEB Iconoculture

Millennials want to make a difference

They intend to make an impact on their world

As employees, they ask for more responsibility sooner than expected

As consumers, they look for brands and businesses that make a difference

They share their opinions and are a key part of marketing strategies

Millennials look to friends and family for referrals and opinions via text and social media

Opinions go both ways with positive and negative testimonials

Millennials are digitally connected

They bring collaboration and positivity

Millennials have been conditioned to multitask

They focus on their goals and work hard from a very young age

Teamwork comes naturally to them

Millennials bring focus and energy to their job

7

8

WHY MILLENNIALS MAT TER

Millennial survey: Strike a balance between technology and trusted advisor

Millennial consumers are attracted to insurance companies that provide the client-centric experience they have become accustomed to with other industries and businesses. However, millennials still highly value an in-person or over-the-phone experience with an agent.

Applied Systems sponsored a survey conducted among a sample of 1,000 adults between the ages of 18 and 34.6 The findings illustrate how respondents shop for insurance coverage and interact with their insurance companies.

1,000 MILLENNIAL SURVEY RESPONDENTS HAD:

Millennials split their auto insurance purchases between in-person, online and telephone sales. Independent agents must have an effective online presence, or they stand to lose a large segment of the market. These results also indicate that the role of the agent as “trusted advisor” is still critically important, and face-to-face interactions are still sought out by millennials.

FINDINGS 91%

SOME FORM OF P&C

INSURANCE COVERAGE

89%

AUTO INSURANCE

55%

HOMEOWNERS

42%

RENTERS

UNDERSTANDING THE MILLENNIAL CONSUMERCHAPTER 2

89% OF M

ILLENNIALS SURVEYED HAD AUTO INSURANCE

37% OF THOSE PURCHASED IN

PERSON

35% OF THOSE PURCHASED O

NLINE

25% USED THE PHONE

9

WHY MILLENNIALS MAT TER

Millennials are social by nature and referrals weigh heavily in their buying decisions. More than half of these respondents asked family and friends for insurance advice, followed by reviews of social media sites to compare with their recommendations. In fact, according to an Edelman study, 74% of millennials believe they influence the purchasing decisions of those around them.7 It is important for agencies to have a strong presence on digital channels and social media to provide education, thought leadership and product information to reach millennial consumers.

FINDINGS

REFERRALS: The key to selling homeowners insurance

HOMEOWNERS: Millennials need a trusted advisor

Which communication channels do you use to interact with your current insurance provider?

Which communication channels would you prefer to use?

50% BY REFERRAL

27%ONLINE SEARCH ENGINE (E.G., GOOGLE, YAHOO)

20%ADVERTISEMENT

13%ONLINE REVIEW SITE (E.G., YELP, ANGIE’S LIST)

28% IN PERSON

18% MOBILE APP/TEXTING

37%ONLINE

67%CALLING DIRECT

34% IN PERSON

29%MOBILE APP/TEXTING

49%ONLINE

65% CALLING DIRECT

8%OTHER

12%STOREFRONT

“ Rather than relying exclusively on social media and online sources, millennials tell us that they look for face-to-face advice from people they trust, and who listen to them, particularly family or a family-referred professional.”

InsuranceNewsNet

9

10

WHY MILLENNIALS MAT TER

“ You must have a strong online presence to build trust and credibility with clients and prospects. Our website is ideally suited to increase and attract new business. In fact, our conversion rate quadrupled when we redid our website, with 400%more visitors filling out forms.”

Karyn Roeling Principal/Owner Seibert Insurance Agency

WHY MILLENNIALS MAT TER

70%

survey respondents

feel 24/7

customer service is very

important

Most millennials prefer to interact with their insurance agent by telephone. However, there is a growing demand for digital channels, and millennials have an appetite for online service technology and mobile access to agents. On-demand, digital service is very important and most consumers would switch insurance providers for access to better online service.

FINDINGS

10

11

WHY MILLENNIALS MAT TER

According to the U.S. Bureau of Labor Statistics and AARP, within 15 years as much as 50% of the current insurance workforce will retire. With a segment of the workforce on the verge of retirement, independent agencies need to recruit a new generation of talent. But to do that, millennials need some convincing that insurance is an innovative and rewarding career to consider.

The perception among some rising young professionals is that insurance is suited more for an older workforce, while others have little or no familiarity with the industry.

A NEW GENERATION FOR INSURANCECHAPTER 3

within 15 years

50%

of the current U.S. workforce

will retire

Turning millennials toward insurance

While there can be some reluctance by millennials to pursue an insurance career, independent agency employers can make a strong case with these 3 points:

1 Insurance is evolving with technology: Insurance businesses are incorporating modernized technology that transforms their operations.

2 Insurance is driven by service: The insurance industry serves an important common good by protecting insureds’ assets. The fundamental purpose and promise of the insurance industry – to protect what matters most – is synonymous with the interests of millennials, who want meaningful careers that serve others.

3 Insurance is a sustainable industry: In an uncertain economy, insurance has longevity on its side and offers security in the fluctuating job market.

not at all familiar

not too familiar

somewhat familiar

very familiar

%

42%

36%

17% 5%

MILLENNIAL

FAMILIARITY WITH THE

INSURANCE INDUSTRY

Source: The Institutes, Millennial Generation Report 8

12

WHY MILLENNIALS MAT TER

Millennials are transforming the workplace

With the influx of millennial employees, insurance organizations are changing the way they do business. Millennials will make up as much as 75% of the U.S. workforce by 2025.

From implementing technology that creates efficiencies, to marketing their offerings in new, more inventive ways, this new generation is changing the way insurance companies operate.

Not only will millennials reshape work processes within the agency, but they will also influence how products should go to market, improve client service, and expand multichannel communication efforts. They will also know the marketplace better, as it’s comprised of their peer group.

“ Insurance is an entrepreneurial industry, so there’s

no income ceiling or no earning limit for a younger

generation entering the insurance workforce today.

They will find a great deal of opportunity to generate

a substantial income and make a difference in the

lives of the insured, which is a nice balance.” Brooks Ziegler producer Morris & Templeton Insurance Agency, Inc.

2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 2 0 1 9 2 0 2 0 2 0 2 1 2 0 2 2 2 0 2 3 2 0 2 4 2 0 2 5

Millennials will make up as much

as 75%of the

U.S. workforce by 2025 9

“ Insurance is an entrepreneurial industry, so there’s no income ceiling and no earning limit for a younger generation entering the insurance workforce today. They will find a great deal of opportunity to generate a substantial income and make a difference in the lives of the insured, which is a nice balance.” Brooks Ziegler

Producer Morris & Templeton Insurance Agency, Inc.

“ We did a lot of research on what millennials look for in careers and found their top four preferences include flexibility, opportunity, giving back and working in an area where they have a personal interest.”

Jennifer Robinson Program Director InVESTMILLENNIALS’ TOP 4 CAREER GOALS:

give back

work in personal interest areas

1 2 3 4

13

WHY MILLENNIALS MAT TER

opportunityflexibility

14

WHY MILLENNIALS MAT TER

Adept on nearly

any devic

e, mille

nnials

can communica

te effectively —

use that to

your co

mpany’s advantage

Flexible hours and

remote work options

to satisfy their need

to balance career

and personal life

Train th

em

to interface

with clients

and co-workers

14

Prepare millennials

Cast a

wider net

Recruit w

orkforce-

ready mille

nnials, but

also stu

dents who

have a history i

n STEM

(science, te

chnology,

engineering and

mathematics) or th

ose

who are part of th

e

InVEST program,

a school-to

-work

insurance program

that teams w

ith high

school and co

llege

educators to provid

e

a useful insurance

curriculum fo

r

students

WHY MILLENNIALS MAT TER

Millennials

want to enjoy

their work,

co-workers,

and corporate

culture

Capitilize on th

eir

networking skills

They have an affinity

to

network around the world

–

fold this i

nto your

marketing program

Close the

generation gap

Mentor seasoned sta

ff members to

work with millennials,

who can learn

from th

eir more experie

nced peers

Create a pleasing work enviro

nment

Provide a

career path

One that gives them

room to

grow and enough internal mobility

to maintain their interests

Allow th

em

to multitask

They exce

l at it and

become bored if

they don’t m

ultitask

Utilize th

eir tech lite

racy

Give them

choices

HOW TO RECRUIT

AND RETAIN

MILLENNIA

LS

Attracting mille

nnials require

s a different approach

comprised of b

est practices to

streamline

recruitment a

nd workforce training, in

cluding:

WHY MILLENNIALS MAT TERMillennial employees understand millennial consumers

Peer-to-peer sales and service will become more prevalent in the insurance industry as the millennial workforce grows simultaneous to the millennial consumer base. The advantage is that they understand each other. Both sides are highly networked, and they work and communicate in the same way. Millennials understand how to market to other millennials and appeal to their sensibilities. However, they need to be highly educated on the insurance industry and informed to successfully service the millennial consumer.

“ It seems like a natural fit for millennials to service millennial insurance clients. Such employees definitely provide access to the social and networking circles in which they run.”

Jason Levine Operations VP Harry Levine Insurance

15

16

WHY MILLENNIALS MAT TER

THE TECHNOLOGY PREFERRED BY MILLENNIALSCHAPTER 4

A common denominator among millennials is the need to be constantly connected to the world around them. Digital technology is an integral part of their lives on a variety of devices with numerous apps. Millennials are driven by a need to integrate everything they do into their own environment.

Millennials also want to stay connected to their friends and co-workers at all hours, through texting and social media. The ability to multitask and share relevant information is essential to the millennial’s productivity. To that end, consumer technology is entering the workplace, and there is strong demand for personal technology to interact with corporate systems.

Millennials also want to stay

connected to their friends and

co-workers

24/7

of millennials email, text and check social media before they even get

out of bed

have a Facebook account

shop online

Smartphones are the device of choice, followed by laptops, then tablets.

Source: Cisco Connected World Technology Report 10

90%

SHARE EMAIL AD

DR

ES

SE

S TO G

ET DISCOUNTS 5 7%

90%

UPDATE THEIR STAT

US

DA

ILY 41 %

87%

17

WHY MILLENNIALS MAT TER

Millennials expect multichannel engagement

The demand for convenient access to information about products and services, client accounts, and self-service transactions is increasing. To meet this demand, multichannel engagement allows various ways for millennials to interact with independent agencies —by phone, mobile device, in person or through a highly functional website.

Additionally, a strong mobile strategy is needed for millennial consumers who make purchases on their mobile devices. But more importantly, the millennial consumer’s experience should be consistent, convenient and personalized at every stage of their buying or service journey.

Keep millennials connected to your business

> Cloud technology drives greater connectivity and collaboration among clients and employees. Millennials gain the access they are accustomed to and agencies provide better customer service. The entire workforce, from millennials to boomers, benefits from the cloud.

> Innovative applications to increase business productivity by freeing agents to focus on servicing clients and selling insurance, while allowing clients to access their insurance information.

TWO POWERFUL SOLUTIONS ON THE

MARKET TODAY INCLUDE:

• Applied CSR24: The leading online client self-service software designed to allow your clients instant access to their insurance information. Applied CSR24 offers extended service hours and a self-service portal, allowing digitally driven clients to access insurance information 24/7.

• Applied MobileProducer: The first independent agent mobile application designed specifically for insurance producers to access and manage their client and prospect information via mobile tablet devices. Applied MobileProducer allows producers to stay connected to client, policy and sales information while in the field, using their mobile devices.

70%

OF SURVEY RESPONDENTS

FEEL

24/7CUSTOMER

SERVICE IS VERY

IMPORTANT

76%

OF SURVEY RESPONDENTS

FEEL THAT HAVING ACCESS

TO INFORMATION AND SERVICE THROUGH A

MOBILE APPIS VERY

IMPORTANT

18

WHY MILLENNIALS MAT TER

1 Allows agents to respond faster and more effectively to client inquiries

2 Provides additional client intelligence

3 Reduces operational costs

4 Fosters greater collaboration between agencies and carriers

5 Generates more client loyalty

6 Increases sales and profitability

6 BENEFITS of multichannel engagement

18

“ Independent agencies and carriers should heed these trends and reinvent their businesses. They should become social businesses that engage with their clients and offer them the relationships, insurance knowledge, personal service and community participation that they value.” ACT Strategic Future Issues

Work Group of IIABA 2013 Key Trends Report

19

WHY MILLENNIALS MAT TER

“ Statistics show that more people go online to start shopping and don’t want a sales rep until later in the buying process. Having a web presence legitimizes your agency, but it doesn’t replace the need for communication. Millennials still want to be educated on their coverage by a trusted professional.” Jason Levine

Operations VP Harry Levine Insurance

5 STEPS to win the millennial consumer

Survey results point to clear steps that agents can take to attract and retain the ever-expanding millennial consumer market. These steps include:

Be their trusted advisor Be available when they need assurance in person

1 3 Update your websiteIncrease conversion rates, capture more customers, and have a more prominent online presence

4 Use a cloud-based agency management systemAllow agents to service clients anytime, from anywhere with an Internet connection

2 Engage millennials with technologyOffer multiple channels, including online, phone, and social media, which also enhances your credibility

5 Leverage technology solutions Provide online self- service capabilities that make it easy for millennials to do business on their terms

19

20

WHY MILLENNIALS MAT TER

MILLENNIALS ARE EVOLVING THE INDUSTRYCONCLUSION

Today, the millennial generation is shaping the insurance industry, not only as new employees

in the workforce, but also as one of the fastest-growing demographics of consumers purchasing

insurance. As buyers and sellers of insurance, millennials are influencing how the industry

operates and brings products to market.

The impact of technology on the insurance industry

To support the role of the trusted insurance advisor, independent agencies are deploying innovative technology solutions, including cloud-based agency management systems, online client portals, and remote-access solutions. Offering multichannel engagement through digital technology allows agents to attract and retain millennials as clients and employees.

By acting as a trusted advisor and providing the technology millennials seek, independent agents are building a technically savvy, well- connected workforce, supported with robust, modernized systems that attract and retain the emerging millennial consumer base. Understanding the values, work requirements and purchasing habits of millennials enables agencies to evolve their operations as this generation continues to impact the industry.

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WHY MILLENNIALS MAT TER

This eBook was prepared by Applied Systems, Inc., with research conducted by ORC International.

About Applied Systems

Applied Systems is a leading provider of software that powers the business of insurance. Applied is recognized as a pioneer in agency and brokerage management systems and data exchange between agencies, brokers, carriers and their clients. Automating the insurance lifecycle for more than 140,000 insurance professionals, 12,000 agencies and brokerages, and 350 carriers worldwide, Applied enables millions of people around the world to safeguard and protect what matters most.

About ORC International

ORC International is a collaborative and consultative research partner to hundreds of organizations around the globe. They possess a wide variety of resources, tools and technologies to collect and analyze information for their clients. As a founding member of the Code of Standards of the Council of American Survey Research Organizations (CASRO) and a member of the European Society for Opinion and Marketing Research (ESOMAR), they adhere to a rigorous Code of Standards and Ethics for Survey Research. ORC International is ISO 20252 certified.

© 2014 Applied Systems, Inc. All rights reserved. This document is provided for information purposes only. It is intended to give timely, but general, information on the subject matter covered herein, and the contents of this document are subject to change without notice. Prior results and case studies mentioned in this document do not guarantee a similar outcome on any particular situation in the future. You should consult with an attorney or other professional service provider with respect to how the matters discussed herein affect and relate to your own business affairs. This document is not warranted to be error-free, nor subject to any other warranties or con-ditions, whether express or implied.

Applied Systems and its affiliates specifically disclaim any liability with respect to this document and no contractual obligations are formed either directly or indirectly by this document. Any statements made

herein are not a commitment to deliver any material, code or functionality, and should not be relied upon in making purchasing decisions, except as provided for in a separate software license agreement. The development, release, timing and availability of any products, features or functionality described herein remain at the sole discretion of Applied Systems and its affiliates.

All other names of products and published works identified herein may be the trademarks or otherwise proprietary material of their respective owner.

Applied Systems, Inc. 200 Applied Parkway University Park, IL 60484 800.999.5368

For more information visit appliedsystems.com

1 Inside the Millennial Mind: The Marketer’s Handbook. CEB Iconoculture Consumer Insights Fast Facts 2013.

2 Nielson: Demographic Stats About Millennials, prepared by Marketing Charts staff, February 2014.

3 Connecting with Millennials, Cheryl Treleaven; Millennials in Motion (video), YAYA Connection.

4 Proper Insights for Analytics & Media Behavior and Influence Study. Goldman Sachs.5 How Millennials Could Upend Wall Street and Corporate America.

Winograd, Hais. Brookings. May 2014.6 Survey conducted by ORC International.7 The Evolving Role of Brands for the Millennial Generation. Edelman Insights. 2014.8 Millennial Generation Attitudes About Work and the Insurance Industry, The Institutes.9 How Millennials Could Upend Wall Street and Corporate America.

Winograd, Hais. Brookings. May 2014.10 Gen Y Technology Report. New Dawn for Work, Play and Identity.

Cisco Connected World Technology Report.

MILLENNIALS ARE EVOLVING THE INDUSTRYCONTRIBUTORS

Applied Systems, Inc. 200 Applied Parkway University Park, IL 60484 800.999.5368

For more information visit appliedsystems.com

© Copyright 2014 Applied Systems