According to the US Census Bureau, over 50% of Americans are now millennials or younger. Furthermore, the entire Millennial generation, plus the older members of Generation Z, have grown up to the point where they now have adult responsibilities and expectations.
Despite various economic challenges, including The Great Recession, the COVID-19 pandemic, and hyperinflation, millennials and older Gen Zers have still managed to grow their incomes. This has allowed them to still accumulate a significant amount of buying power despite so many potentially bleak fiscal outcomes from an unstable economy.
For instance, a market research firm with a focus on younger generations called YPulse has concluded that millennials and older Gen Zers have nearly $3 trillion in spending power annually.
As they’ve amassed this buying power, they’ve become increasingly aware of the insurance industry. For example, the Society of Actuaries Research Institute (SOA) sponsored a survey of younger US consumers on what they thought of the insurance industry and what they expected from insurance products. On average, the respondents said they view it in a positive light, and they rated insurance companies 6 out of 10 in terms of trust.
This growing awareness of the importance of insurance coverage has been further fueled by the COVID-19 pandemic, with 60% indicating that they are now more aware of their life insurance needs because of the pandemic.
Finally, more than one-fifth of these young consumers hope to buy life insurance within the next 12 months. That means that there is a growing market that has considerable spending power and is looking for the best life insurance products.
While some may believe that younger generations are distrustful of well-established and conventional institutions, this new data clearly indicates that is just not the case. In fact, millennials and Gen Zers are shaping up to be a solid source of potential sales as they were profoundly affected by the COVID-19 pandemic and its implications for health and life insurance.
CoPower can help meet these growing demands, so contact your Amwins Connect Sales Representative to learn more!