As the youngest group of adult consumers, Millennials aren’t readily thought of when the subject of insurance comes up. Rather, it’s human nature to associate this demographic with things like technology, social media and e-commerce.
Truth be told, many Millennials have delayed certain life milestones, such as buying a home or a car. So in that regard, it’s no surprise if insurance isn’t top of mind for them. But not all Millennials are ambiguous about their insurance needs. In fact, upscale Millennials—those whose income is greater than $75,000—represent a unique segment of opportunity for insurers, as they have a greater likelihood of being married, well-educated and homeowners.
Upscale Millennials have more to protect than the generation as a whole. Notably, 15% of the total Millennial generation earn more than $100,000 per year. And although Millennials as a group are less likely to have insurance than older generations, the same can't be said for upscale Millennials. In fact, upscale Millennials have higher ownership rates of auto insurance and homeowners/renters insurance than older generations and have similar ownership rates of life insurance.
Among the many products and services we buy in any given year, insurance is often something consumers will seek out better pricing for. While insurance is often linked to family legacy, Nielsen Insurance Track research has found that roughly 67% of Millennials have shopped around for insurance from another company in the past three years, compared with 55% of the general population. Upscale Millennials are even more likely to shop around, as approximately 72% of them have shopped for insurance from another carrier in the past three years.
But despite being price conscious, Millennials are not willing to sacrifice quality just to save a buck. In fact, 54% say they’re willing to pay more for better insurance coverage. Upscale Millennials are even more likely than Millennials as a whole to value quality coverage, with 61% indicating they would pay more for better coverage.
Upscale Millennials are young and are more likely to own big-ticket items than the overall demographic. They’re also more likely to be engaged with insurance carriers because they want to look out for their current and future assets. Focusing on upscale Millennials will deepen engagement and build loyalty with this lucrative segment.
For additional insight, download our Millennials in 2015: Insurance Deep Dive report.