Evolving Expectations: 5 Important Factors in Purchasing Insurance

Introduction

Insurance consumer expectations are changing, driven largely by the broad adoption of on-demand connections and continually accessible services. Consumers are now more comfortable making big purchases online, streaming movies anywhere, and sharing digital data with brands they trust.

Insurance is no exception. The 2021 Levvel Insurance Consumer Report found that digital tools are a top priority for Millennial purchasers—and with this age group now representing the largest insurance-buying segment nationwide, it’s critical for insurance companies to align existing service models with evolving expectations.

Here’s a look at five important factors that influence insurance consumer purchases.

1. Understandable Products

Levvel’s research found that Millennials, Generation X, and Baby Boomers collectively rated understandable products as their most important factor in choosing an insurance company. It makes sense—whether customers are shopping for policies online, over the phone, or in person, they want to understand what they’re buying and how it works.

For an insurance company, the message is clear: While mobile and digital solutions are now in demand, capturing customer attention still starts with the basics.

2. Price and Payments

Price and payments are also important factors. Customers want to feel like they’ve gotten good value and want flexible payment options when it comes to premiums.

Here, companies are best-served tailoring their price and payments approach to customer preference. For example, Baby Boomers may opt for paper statements that cover premium and deductible details, while Millennials often want the ability to view this information online.

3. Well-Known Brands

Brand reputation still carries weight across all customer age groups. For older insurance clients, previous in-person interaction with agents combined with word of mouth from close friends or neighbors often forms the core of their brand opinions.

However, for Gen X and Millennial customers, their view of brands is often tied to social media interactions and online review sites. This means that while familiarity matters, name alone isn’t always enough for Gen X and Millennials. They want brands to demonstrate their commitment to consumer satisfaction by actively connecting with customers online and taking steps to resolve issues as they arise.

4. Extent of Coverage

The extent of insurance coverage remains a priority for all demographics. While other factors such as price, reputation, and clear product details all play a role in selecting an insurance company, customers’ primary focus remains the depth and breadth of coverage offered.

Here’s why: Even the best branding or most reasonable prices aren’t a substitute for comprehensive insurance coverage. If customers feel like standard coverage doesn’t offer enough protection or requires too many add-on purchases, they’re more likely to find another provider.

5. Self-Service Tools and Mobile Apps

Self-service tools and mobile applications that streamline the insurance process are now a priority for customers. It’s worth noting, however, that there’s a significant generational divide here. While Boomers and Gen X do find these important, they’re more concerned about robust phone support systems and knowing agents personally.

Millennials, meanwhile, rank self-service tools and mobile apps as their top two priorities when choosing an insurance company.

Finding Common Ground

Bottom line? For insurance companies, it’s critical to meet customers where they are, not where they used to be. In practice, this means continuing to prioritize key factors such as understandable products, clear pricing, and comprehensive coverage. But it also speaks to the need for in-depth digital solutions that address Millennial purchasing priorities and account for the changing needs of Gen X and Baby Boomer customers.

Looking for even more insurance insight? Read the full 2021 Insurance Consumer Report by Levvel.