Millennials have surpassed baby boomers as America’s largest living generation[1]. More than one-in-three workforce participants are millennials, making them a high-valued target for insurance marketers. If you scan business media, however, you will find no shortage of articles about the reasons millennials are bypassing life insurance.

That this long-standing myth continues to persist in this age of digital transformation is puzzling. Millennials are a sizable population with an estimated annual buying power of $200 billion, yet insurers are still focusing on one or two lucrative market segments[2]. The truth is that millennials could become a very robust market for insurers as they start families, advance in their careers, and become more upwardly mobile.

Millennials tend to believe life insurance is expensive, with 44 percent overestimating the cost by five times, according to the LIMRA Insurance Barometer Study. Others assume that life insurance still has to include a lengthy and intrusive purchasing process. Members of this generation, who greatly value ease and convenience, need to know that getting life insurance is easier than ever before, with accelerated underwriting processes helping to meet demands for convenience. And they’re catching on: 37 percent of buyers coming through LexisNexis Risk Solutions’ accelerated underwriting solution are millennials[3].

To bust through all of the myths surrounding millennials and life insurance, insurers must take advantage of new data and analytics, and rethink their reticent approach to the millennial market.

[1] “Millennials Outnumber Baby Boomers and Are Far More Diverse”, U.S. Census Bureau Reports, June 25, 2015

[2] 2017 Insurance Barometer Study, LIMRA

[3] LexisNexis Risk Classifier Orders, Sept 2016 – Sept 2017, LexisNexis Risk Solutions

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