"Young Consumers May Transform Insurance Purchases, Elevating Financial Institutions' Appeal"

Boston Brand Media brings you the latest - A recent report suggests that younger consumers are poised to revolutionize the insurance market, potentially increasing the attractiveness of purchasing insurance from financial institutions. This shift highlights a changing landscape in consumer behavior and preferences, indicating a potential rise in demand for insurance products from traditional financial entities. Understanding this trend could provide valuable insights for insurers and financial institutions seeking to adapt and cater to evolving consumer needs.

"Many individuals acquire their insurance coverage from different sources; however, research indicates a desire among consumers to streamline this process. According to PYMNTS Intelligence, 44% of all consumers express a preference for obtaining insurance through their financial institutions (FIs)."

Boston Brand Media also found that younger consumers, in particular, demonstrate a strong interest in obtaining these services from a financial institution (FI). For instance, Generation Z consumers exhibit a 43% higher likelihood than the average population to consider obtaining insurance from an FI. Their enthusiasm has the potential to disrupt the established order. 

These insights are part of the analysis presented in "Why Consumers Are Looking to Financial Institutions for Insurance," a collaborative effort between PYMNTS Intelligence and Franklin Madison. The report delves into consumer perceptions regarding FIs as insurance providers, drawing from a survey of 2,195 U.S. consumers conducted from March 22 to March 28.

Other key findings in the report include:

‍"Consumers Seek Convenient Sources for Insurance Coverage Needs"

Our data indicates that, on average, consumers possess 3.7 distinct types of insurance, with wealthier individuals typically holding a slightly higher average of 4.4 types. Predominantly, consumers prioritize health insurance (78%) and auto coverage (75%). However, beyond these essentials, preferences for specific types of insurance—like life, pet, or travel—diverge among consumers. This report delves into the particular types of insurance that consumers express the most interest in acquiring from their financial institutions.

"Over 40% of Consumers Interested in Purchasing Insurance from Financial Institutions; Gen Z and Millennials Lead the Trend"

Forty-four percent of consumers express interest in purchasing insurance from their financial institution (FI). Among Generation Z, the figure rises to 63%, while among millennials, it stands at 60%. Moreover, consumers who have already acquired these services from an FI are likely to become repeat customers, with 76% of them expressing an interest in purchasing more insurance in the coming year.

Trust serves as the primary motivator for consumers considering purchasing from a financial institution (FI).

Trust emerges as the primary driver behind consumer interest in acquiring these services from a financial institution (FI), with 39% of consumers citing trust as their main consideration, compared to 19% for cost. The report also explores reasons why some consumers are hesitant to seek insurance from their FIs.

Financial institutions have the potential to evolve into comprehensive hubs addressing both financial and insurance requirements, with consumers increasingly receptive to this concept. Access the report to delve into consumers' growing interest in FIs as insurance providers.

For questions or comments write to writers@bostonbrandmedia.com

Source: pymnts‍