Three consumer trends impacting the auto and home insurance industry
As technology and connectivity continue to transform the daily lives and shopping behaviors of consumers, we need to be focused on what Farnaz Wallace, founder of the strategic consulting firm Farnaz Global, calls the “New World Marketplace.” 1
As Baby Boomers and Generation X age out, the millennials who grew up with mobile technology are going to drive market behavior. While they are currently only 25 percent of the population, millennials are projected to make up 75 percent of the population in 2025. For them, 24/7 service is the norm, online reviews carry significant weight and interaction with brands on social media is an everyday occurrence.
This “New World Marketplace” has paved the way for a host of new trends that are shaping the insurance industry—not only the products themselves, but the way consumers shop for them. Here is a snapshot of three consumer trends impacting the A&H industry in 2018:
- Continued direct channel growth.
While direct channels have been steadily growing over a period of years, without a doubt this continued trend demands our ongoing attention. The rapid and continued rise of direct channels is being driven by consumers’ desires to instantly fulfill their needs, mostly due to access to smartphones. Today, 77 percent of adults in the United States use a smartphone, a significant increase from just 35 percent in 2011.2
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