Business & Finance
Business and Finance
Business and Finance
Wed, July 7, 2010
Tue, July 6, 2010 
NEWARK, N.J.--([ BUSINESS WIRE ])--aYou think you know, but you have no idea,a summarizes how the average Gen Yer feels about the life insurance process according to a study released today by Prudential Individual Life Insurance, a unit of The Prudential Insurance Company of America, a subsidiary of Newark, N.J. based Prudential Financial, Inc. (NYSE:PRU).
"Today, so much of our time is spent online so ita™s no surprise that the Internet is their first stop when theya™re looking for information about life insurance"
The report, [ aReaching Gen Y - easier than you think,a ] revealed that consumers born between 1979 and 1994 believe that insurance companies havena™t officially started targeting them yet, and as such, have resorted to using generic tactics to sell their products. While 68 percent of those surveyed intend to buy, or add life insurance coverage within the next three years, they arena™t interested in being a part of the typical purchase process. Gen Yers want to be empowered to buy, and ultimately theya™d like to see people like them who have insurance and are better because of it.
aHearing these statements firsthand really turned our original thinking and approach on its head,a said Joan Cleveland, senior vice president, business development with Prudential Individual Life Insurance. aWhile ita™s clear that more research needs to be done, we know that our marketing messaging needs to meet Gen Yers where they are, and allow them to see themselves with life insurance.a
The real challenge is for the industry to augment traditional distribution channels and begin to think more broadly about different consumer access points. This is particularly true for Gen Y, because this group doesna™t want to be pressured or automatically enrolled into life insurance plans they do not understand. They also want more education about life insurance products and ultimately an easier way to buy.
While 53 percent of Gen Yers surveyed would consider purchasing life insurance online, they still want to talk to an agent at some point during the process.
aToday, so much of our time is spent online so ita™s no surprise that the Internet is their first stop when theya™re looking for information about life insurance,a said Cleveland. aWhen people put Gen Y and the Internet in the same sentence, they automatically think social networking. But that is only one part of the equation, so wea™ll leave it up to them to drive the process and tell us where else we need to go.a
The study also revealed that Gen Y understands life insurance as a concept, but the complexities of pricing, product types and the underwriting process are still lost on this group, resulting in many misconceptions. For example, many Gen Yers think life insurance is only necessary for those with high-risk jobs or for people who are sick, old, or both. Some even described it as a luxury item only for the wealthy.
Despite these perceptions, Gen Y is a market that should not be overlooked by the insurance industry. aTo align with the lifestyles and preferences of Gen Yers, wea™ll do a better job of demystifying the life insurance process. And, wea™ll look to relinquish some of the control and allow them to teach us about themselves so we can create relevant products and processes,a said Cleveland.
The survey polled a total of 1,514 consumers between the ages of 21 and 29. Outside vendor MRops was responsible for the programming and hosting of the survey, conducting the interviews online and submitting quality-assured data to Prudentiala™s Global Market Research for analysis.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $693 billion of assets under management as of March 31, 2010, has operations in the United States, Asia, Europe, and Latin America. Prudentiala™s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. In the U.S., Prudentiala™s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. Life insurance is issued by The Prudential Insurance Company of America, Newark, NJ, and its affiliates. For more information, please visit [ http://www.news.prudential.com/ ].
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