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
The Purchase Funnel, LIMRA, 2017
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
The Purchase Funnel, LIMRA, 2017
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
Source: The Purchase Funnel, LIMRA, 2017
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
Households Under 35(millennials)
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%
The Purchase Funnel, LIMRA, 2017
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
Households Under 35(millennials)
All U.S. Households
Stage 2 – Information Sources Used
14
Stage 3 - Method Used for Quotes by Age
Source: The Purchase Funnel, LIMRA, 2017
0% 10% 20% 30% 40%
Direct by mail
Online aggregator
Over the phone
Group/Association website
Company website
Financial Professional
Households Under 35(millennials)
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
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
Source: 2018 Insurance Barometer
18
52% are more
likely to buy via
SUW, than via
traditional UW.
Likelihood to Buy - Simplified Underwriting (SUW)
Source: 2018 Insurance Barometer
19
SUW is most
appealing to those
who own group
coverage.
Likelihood to Buy via SUW by Life Ins. Ownership
Source: 2018 Insurance Barometer
20
Most appealing
benefit of SUW =
fast and easy
process.
Consumer Appeal of Simplified Underwriting
Source: 2018 Insurance Barometer
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
Source: Discovering Gen Z, LIMRA, 2017
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
Source: Discovering Gen Z, LIMRA, 2017
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
Gen Z (16-17 years) Millennials (18-22 years)
Financial Decision Influencers
Source: Discovering Gen Z, LIMRA, 2017
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
Source: Discovering Gen Z, LIMRA, 2017
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
Source: Discovering Gen Z, LIMRA, 2017
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
Tumblr
Google+
Snapchat
YouTube
Gen Z (16-17 years) Millennials (18-22 years)
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*
Gen Z (16-17 years) Millennials (18-22 years)
Financial Learning Preferences
Source: Discovering Gen Z, LIMRA, 2017
* 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
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