Marketing to Younger Generations - limra.com · Marketing to Younger Generations. 2 Projection: The Generations 23 72 66 87 79 Silents Boomers Gen X Millennials Gen Z In Millions

Marketing to Younger Generations

2

Projection: The Generations

23

72

66

87

79

Silents

Boomers

Gen X

Millennials

Gen Z

In Millions

U.S. Population by Generation - 2020

Source: U8 Census, 2014 National Population Projections

Ages 2 to 20

Ages 21 to 39

Ages 40 to 55

Ages 56 to 74

Ages 75 and over

3

• Growth of the internet, search engines &

information.

• Explosion in social networking and news sources

• Ubiquity of mobile devices.

Technology

• September 11, 2001 terrorist attacks.

• The Afghan war, which began in 2001, is the

longest war in U.S. history!Terrorism & War

• Economic recession in 2001.

• Financial crisis of 2007– 2009.

• Worst economic period since the great depression

of 1929–1939.

Economic Instability

Defining Events for Millennials

2018 LIMRA Life Conference, Chicago, IL

Generations are defined by common experiences.

4

62%55%

50% 50%44% 44%

72%65%

56%

47%42% 41%

34% 32%

1960 1976 1984 1992 1998 2004 2010 2016

Owns AnyIndividual Life

Owns Individual LifeBought In-Person

Individual Life Distribution Trends

Source: Life Insurance in Focus, LIMRA, 2016

Before ’84,

buying in-

person was

presumed

In ’84, 6-point

gap identified

Gap is now

12-points

5

Buying via agents was

a shared experience

among most

households.

Now, those working

with an agent (or

owning individual life)

are the minority.

Very different context

for modern shoppers!

Group Coverage More Common than Individual

Source: 2016 Life Insurance Ownership in Focus - Households

46%54%

53%

52% 52%49%

46%

72%+

65%+

62%

55%

50% 50%44% 44%

83% 83% 81%78% 76% 78%

70% 70%

1960 1976 1984 1992 1998 2004 2010 2016

*Includes Individual, Group, SGLI & VGLI + Individual Life Sold Face-to-Face through an Agent

Owns Group Life Owns Individual Life Owns Any Life*

6

33%29%

43%

50%

44% 44%

2004 2010 2016

Households Under Age 35 All Households

Big change in

ownership trend

among Millennials

vs. Gen X.

Most prefer to buy

in-person.

Individual Life Ownership Trends by Age

Source: Life Insurance Ownership in Focus, LIMRA, 2016

7

Purchase

Coverage

(7%)

Evaluate Quotes (11%)

Seriously Shop

(15%)

Recognize Need

(25%)

• 1-in-4 households recognize a need for

life insurance in a 24-month period (31

million households).

• Among those, just 58% move on to “shop”

for coverage - 19 million households.

• The majority (72%) of “shoppers” move on

to apply for quotes - 14 million

households.

• Of those that apply for quotes, 66% go on

to buy life insurance - 9 million

households.

The Individual Life Purchase Funnel

The Purchase Funnel, LIMRA, 2017

8

Stage 2 (Shop) Stage 3 (Quote) Stage 4

(Purchase)

1.531.19 1.1


Number Of Methods Used By Stage

9

27%

34%

32%

13%

17%

33%

22%

46%

31%

26%

21%

22%

Stage 4 -Purchase

Stage 3 -Quote

Stage 2 -Shop

Phone Online Mail In-person


Included: in-person, mail, online, phone. Excluded: banks, peer-to-peer, workplace, other.

Distribution Share By Purchase Stage

10

28%

16%

12%

9%

25%

15%

11%

7%

RecognizeNeed

Shop forCoverage

Apply forQuotes

PurchaseCoverage

Households Under 35(millennials)

All U.S. Households

Younger

consumers are

slightly more

prevalent in the

purchase funnel.

Purchase Funnel - by Age

Source: The Purchase Funnel, LIMRA, 2017

11

Stage 1 - Strongest Impression on Need for Coverage


0% 5% 10% 15% 20% 25%

Information from a meeting/seminar

Advertisements

Information received by phone

Don't remember

Information in an email

Information received at work

A financial professional

Information in the mail

Conversations with friend/relative


All U.S. Households

12

Information SourcesPercent

Used‘Very Helpful’

I reviewed information I received through the mail 33% 46%

I used at least one online source for information 31% 58%

I met in-person with at least one Financial Professional 26% 82%

I spoke by phone with at least one company directly 22% 61%

I spoke with friends and family members 20% 56%

I watched/listened to information on TV/radio 10% 44%

I read information in newspapers and magazines 9% 49%

I attended a seminar or meeting on life insurance 7% 60%


Stage 2 – Information Sources Used

13 Source: The Purchase Funnel, LIMRA, 2017

0% 10% 20% 30% 40%

Attended a seminar

Newspapers/magazines

Watched/listened to TV/radio

Spoke with at least one life ins. co. directly

information received through the mail

Met in-person with a financial professional

Spoke with friends/family

Used at least one online source


All U.S. Households

Stage 2 – Information Sources Used

14

Stage 3 - Method Used for Quotes by Age


0% 10% 20% 30% 40%

Direct by mail

Online aggregator

Over the phone

Group/Association website

Company website

Financial Professional


All U.S. Households

15 The Purchase Funnel, LIMRA, 2017

Included: in-person, mail, online, phone. Excluded: banks, peer-to-peer, workplace, other.

27%

22%

14%

26%

21%

19%

14%

27%

In-person

Mail

Online

Phone

Under 35 All Households

Stage 4 – Purchase Method By Age

16

52% 52%

45%40%

54% 52%

37%

20%

41%

33%

22%

13%

Millennials Gen X Boomers Silent

Visited the website of a life insurance company

Sought information about life insurance online

Purchased/attempted to purchase life insurance online

Online Usage for Life Insurance by Generation

Source: 2018 Insurance Barometer

17

32%

16%

6%

46%

27%

15%

5%

53%

Used after researchingelsewhere and

getting a good idea ofwhat I wanted

Used before researchinginsurance elsewhere

Used without researchinginsurance elsewhere

Did not use

2017 2018

Use of Comparison Quote Websites


18

52% are more

likely to buy via

SUW, than via

traditional UW.

Likelihood to Buy - Simplified Underwriting (SUW)


19

SUW is most

appealing to those

who own group

coverage.

Likelihood to Buy via SUW by Life Ins. Ownership


20

Most appealing

benefit of SUW =

fast and easy

process.

Consumer Appeal of Simplified Underwriting


45%

63%

65%

65%

65%

72%

No face-to-face

No Dr. visit

Unbiased & objective

Transparent pricing

No medical exam

Fast & easy

21

56%

94%

97%

59%

95%

97%

Start a business

Graduate from college

Financial independence

Gen Z (16 & 17) Millennials (18 - 22)

Top Financial Goals

Source: Discovering Gen Z, LIMRA, 2017

22

• “I want to major in Industrial Design to be able to create my own inventions.”

• “I want to make a business and work on my own because I don’t like following rules….When I feel I am ready, I will create a business of my own.”

Voice of Gen Z

Gen Z Financial Goals


23

37%

41%

52%

51%

49%

45%

30%

34%

40%

43%

43%

50%

Money management skills

Financial knowledge

Future

Achieving financial goals

Getting a full-time job

Student loans

Gen Z (16-17 years) Millennials (18-22 years)

Top Financial Concerns


24

Voice of Millennials

• Start learning about finances before college. It will help you...especially with student loans.

• Learn how to budget, keep on track, pay off loans early, and you can be financially independent sooner.”

Voice of Gen Z

• The way you budget your money determines the lifestyle you’ll have.

Young Consumer Financial Concerns

: Discovering Gen Z, LIMRA, 2017

25

11%

22%

23%

55%

7%

16%

18%

63%

Online personalities/YouTube/blogs

Opinions of friends/peers

Online ratings/reviews

Opinions of parents/family


Financial Decision Influencers


26

29%

50%

56%

57%

73%

75%

79%

82%

96%

Life insurance

Benefits at work

Health insurance

Loans

Auto insurance

Credit card

Budgeting

College funding

Saving money

Topics Gen Z Discuss With Parent


27

Voice of Millennials

• It is vital for parents to talk about finances… teach kids how to save and spend money, even their allowance and birthday money.

Voice of Gen Z

• I found a personal finance course helpful in choosing a career, finding its base salary and trying to plan a successful lifestyle. It was a great way to see how well you can budget and plan for the future.

Topics Gen Z Discuss With Parent


28

Social Media Used for Reviews

: Discovering Gen Z, LIMRA, 20173%

10%

14%

27%

26%

38%

36%

47%

56%

79%

2%

6%

8%

24%

31%

34%

43%

48%

55%

73%

Other

LinkedIn

Tumblr

Pinterest

Google+

Twitter

Snapchat

Instagram

Facebook

YouTube


29

6%

10%

10%

13%

19%

22%

21%

2%

5%

12%

13%

17%

21%

30%

Online discussion forums

Learning from a textbook

Group discussions with financial professional*

Online courses

Visiting general financial or company websites

YouTube video clips

Classroom with teacher*


Financial Learning Preferences


* Face-to-face or virtual settings

30

Voice of Gen Z• Everyone uses phones and apps, so the focus should

be on using technology.

• Give examples of good apps to use for managing expenses, bank apps for mobile deposits, electronic bill payments, transferring money.

Financial Learning Preferences

2018 LIMRA Life Conference, Chicago, IL Source: Discovering Gen Z, LIMRA, 2017

Your Trusted Source for Industry

Knowledge

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Marketing to Younger Generations - limra.com · Marketing to Younger Generations. 2 Projection: The Generations 23 72 66 87 79 Silents Boomers Gen X Millennials Gen Z In Millions