More Than 60 Percent of 25–45-Year-olds Consider Texting a Competitive Differentiator When Purchasing Insurance Policies
Boston, MA – August 24, 2021 – Hi Marley, creators of the only intelligent communication platform built for the insurance industry by people who know insurance, today unveiled the results of a survey that found stark differences in how Canadian policyholders – particularly the desirable 25–45-year-old demographic – prefer to communicate with their insurance providers.
A randomized sampling of nearly 1,000 Canadian consumers, ages 18 and up with at least one auto, home or life insurance policy were polled in August 2021. For Canadian insurance providers looking to deliver a more seamless experience for customers at all different stages of life, the results showcase a number of valuable takeaways.
Key findings include:
Millennials (and others) want to text with their insurance provider. 56 percent of Millennials and 52 percent of those aged 35-44 said they would have preferred to resolve any portion of past claims using texting if that feature were offered by their provider. About two-thirds of both Millennials and the mixed Millennial/Gen-X 35-44 age group would use text messaging to service their existing insurance policy; for instance: to add new coverage, ask questions about billing issues, etc.
Millennials consider texting a competitive differentiator. 61 percent of Millennials said they would prefer to buy a policy from an insurance company that offers text messaging over a company that does not, the highest out of any age range. The 35-44 age group was close behind (58 percent) in that sentiment. An equal number of respondents in both groups (56 percent) said they would use texting to help purchase a new insurance policy to text a sales agent, get a quote, etc.
All ages see value in texting. 70 percent of total respondents said they would use text messaging to receive notifications from their insurer about timely events, for example: payment due, adverse weather conditions in their area, appointment reminders, etc. – and that number is higher for Millennials (75 percent) and the 35-44 age group (76 percent). 69 percent of total respondents also said they would save their insurance provider’s text number into their phone’s contacts, pointing to the importance of a trusted relationship – and this number was highest for the 35-44 age group (74 percent).
Certain age groups notice more inefficiencies in the claims process. 54 percent of Millennials and 53 percent of 35–44-year-olds found themselves retelling their incident and information to multiple people at the insurance agency handling their past claims, while 43 percent of older generations had the same sub-par experiences. Similarly, 55 percent of Millennials and 52 percent of the 35-44 age group recalled playing phone tag with the adjuster handling their claim, a number that reduced to 37 percent for older generations.
For some, group messaging could mean faster claims. More than half (53 percent) of Millennials and a greater percentage (60 percent) of the 35-44 age group said they would participate in a group texting conversation with their insurance company and another party, such as an agent, body shop or tow company, to resolve their claim. That number was lower (34 percent) for the 45-plus age group – although still a significant amount.
Texting should be reserved for established relationships only. When asked about communication preferences for a first interaction with a business, respondents in all age groups agreed that email (40 percent) or phone call (38 percent) is a more appropriate method of communication. Once a relationship is established, the majority of Millennials want to text – with 40% saying they would prefer to communicate via text over phone call or email.
“Policyholders have different needs and preferences at various stages of their lives, so insurance providers cannot take a one-size-fits-all approach to communication,” said Mitesh Suchak, Co-Founder and Chief Operating Officer at Hi Marley. “Millennials, and the 35-44 age range in particular, are on the go – they’re starting or growing families, buying houses, or are at the peak of their careers – and expect seamless experiences that fit into that flow. It’s no wonder they have a strong preference for texting. These groups are also known to be the most profitable demographic for insurance carriers, with greater opportunity for multi-lining and retention, and providers would be remiss not to digitize communication to future-proof their business.”
For more analysis on the survey findings, tune in to Hi Marley’s presentation at Future of Insurance Canada 2021 today at 9:20 AM ET to hear what carriers can do to successfully, seamlessly and securely meet the growing customer demand for texting.
About Hi Marley
Hi Marley is the intelligent communication platform for the insurance industry. Built by people who know and love insurance, the platform enables hassle-free texting across the entire ecosystem, empowering insurance professionals and delighting policyholders. Hi Marley’s industry leading analytics deliver novel insights that fuel continuous improvement. The solution is built for the enterprise – fast to deploy, easy to use and seamlessly integrates with other core systems. Hi Marley is empowering the world’s leading insurance carriers to reinvent the customer and employee experience.