Young people about to interview for jobs. Most millennials report being recruited to the industrythrough employee referrals or through the family business. (Photo:Shutterstock)

|

As more baby boomers retire from the insurance world,it's clear that the industry's future is being left in good hands,according to Vertafore's 2018 “Millennials in Insurance” survey.

|

The Denver-based provider of software for independent insuranceagencies and brokers polled more than 1,200 insuranceprofessionals, including nearly 400 millennials, and found that more than threequarters (76 percent) of millennials have been in the insuranceindustry for more than three years — an impressive statisticconsidering that the younger generation is known for job-hopping.

|

Related: Millennial enthusiasm paints rosy picture forinsurance industry's future

|

Moreover, 72 percent of millennials responding to the survey saythey plan to work in insurance as long as possible. That could bedue to the fact that millennials make more money in the insurance world thantheir peers do in other industries. Vertafore found that themajority of millennials in the insurance industry make between$30,000 and $60,000 a year, compared the average millennial salaryof around $35,500 across industries.

|

“Ten thousand baby boomers will turn 65 today — and every day —for the next 11 years, prompting a two-fold challenge for agenciesand carriers to both fill the workforce gap and compete in anincreasingly tight recruitment market,” says Kristin Nease, vicepresident of human resources at Vertafore.

|

“This year's survey suggests that millennials continue to beenthusiastic about the direction of the insurance industry, withthe overwhelming majority — 87 percent — stating they wouldrecommend a career in insurance to friends and family — an increaseof five percent from 2017,” Nease says.

|

Most millennials report being recruited to the industry throughemployee referrals (36 percent) or through the family business (20percent), according to the survey. They are more likely to work atan agency, and 84 percent of those polled by Vertafore say theywork at an insurance agency. In addition, the survey found that onethird of millennials (33 percent) work in customer services/accountmanagement positions, followed by 30 percent who are inproduction/sales.

|

By contrast, 36 percent of Gen Xers (ages 38 to 53) in theinsurance industry work in customer services/account management,followed by 20 percent who are in production sales. As for babyboomers (ages 54 and older), 31 percent work in customerservices/account management, followed by 28 percent who areowners/principals, with 21 percent in production sales.

|

Millennials responding to Vertafore's survey cite a long list ofbenefits of working in insurance, and at the very top: work-lifebalance. Sixty-five percent of millennials say a healthy work-lifebalance is the No. 1 benefit of working in the insurance due to theindustry's customary 9 to 5 daily work schedule with built-inflexibility.

|

After work-life balance, compensation and financial stability(64 percent) comes in second, followed by career growthopportunities/professional development (61 percent); ability to becreative (58 percent); and the ability to work directly with peoplein the community (53 percent).

|

A majority (59 percent) millennial respondents say that theyrely on social media to strengthen customer support and retention.About 55 percent said they use social media to increase brandawareness; 49 percent use it to generate new business leads; and 19percent use it to hire and recruit new employees.

|

They're seeing a return on investment, as 61 percent ofmillennials say technology made a positive impact on their companyin the last 12 months, responding that it increased overallefficiency and enabled them to strengthen relationships withcustomers (54 percent).

|

Here's a snapshot of how millennials in insurance are usingsocial media every day. In examining social media daily usageacross 2017 and 2018, adoption of Facebook, Instagram and Text/SMShave grown at the highest rate.

  • Facebook – 13 percent in 2017 vs. 25 percent in 2018
  • LinkedIn – 9 percent vs. 10 percent
  • Instagram – 5 percent vs. 13 percent
  • Text/SMS – 24 percent vs. 40 percent
  • Instant Messaging (Slack, Skype, Google Chat) – 30 percent vs.30 percent.

Close to half of the millennials surveyed (49 percent) saythey're optimistic that automation and other technological advanceswill actually help streamline efficient tasks and enable them tofocus on the most important aspects of their jobs, which includesbuilding better relationships with their clients.

|

As for insurtech startups like Trov, Metromile and Lemonade,almost one quarter (23 percent) of millennials say they are notconcerned because they believe increased competition will benefitthe industry. The overwhelming majority of millennials are eitherunsure or unconcerned (83 percent) about how insurtech startupswill affect their company.

|

“Insurance is at the cross roads of innovation, with increasingcompetition from new industry entrants as the landscape becomesmore driven and automated by technology,” Nease says. “At its core,insurance is about relationships, and technology should enablethose relationships.”

|

“Millennials bring with them the ability to adapt and flourishin a technology-first environment, and the drive to establishthemselves as intrepid young professionals,” she adds. “The futureof the insurance industry is promising, particularly for those thancan attract this tenacious generation.”

|

Read more:

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.