UNDERSTANDING MILLENNIAL INSURANCE CONSUMERS agent for the future™ Meeting guide What do millennial consumers look for in insurance? How can independent agents attract and retain younger customers? Liberty Mutual and Safeco Insurance recently surveyed 1,600 millennials (those born between 1981 and 1997) to provide answers to these questions. Let’s talk about the findings and what they mean for your agency.

MEETING AGENDA Introduction Meeting objectives Overview video Key points from the report Take action!

AGENT FOR THE FUTURE™ AgentForTheFuture.com exists to help all independent agents succeed. We share actionable insights, practical advice and agency success stories to help agents thrive today and evolve to take advantage of new opportunities in the future. Understanding Millennial Insurance Consumers is part of a new series designed to help you attract millennial consumers. Liberty Mutual and Safeco Insurance created the Agent for the Future to help independent insurance agents thrive now and in the future.

MEETING OBJECTIVES By the end of the meeting you should be able to: Describe widely held myths about millennial consumers. Construct a personal inventory of skills that will help you attract millennial consumers. Identify opportunities within your sphere of influence to attract and retain millennial consumers.

HOW WOULD YOU DESCRIBE MILLENNIAL INSURANCE CONSUMERS? What do you think? - When you picture a typical millennial insurance consumer, what comes to mind? What do you think they look for when shopping for insurance? How would you market to them?

Watch this short video for an overview of the research

KEY POINTS FROM THE RESEARCH Millennial Consumers Let’s talk about some of the key findings from the research

MILLENNIALS CARE ABOUT MORE THAN JUST PRICE There’s a common belief in the insurance world that millennials look for the cheapest insurance and buy online through large, direct to consumer carriers. But our research found that more than half of millennials bought insurance through an independent or exclusive agent. And millennials don’t just care about price. In fact, only 31 percent said they wanted the lowest price, even if it means a basic policy. Far more care about comprehensive coverage, understanding their coverage, and good service. Those are all particular strengths of independent agents!

MILLENNIALS WANT YOU TO HELP THEM BECOME INFORMED CONSUMERS Some insurance professionals think that millennials don’t pay attention to their policy details. But our research found that millennials want to be informed consumers. 80 percent of millennials who work with agents want their insurance agent to help them understand insurance. They want their agent to talk them through their coverage and how it works, what to expect if they have a claim, the unique features of their policy, and how to manage their policy online. 31 percent also said they want their agent to explain additional products and services that could be relevant to them. This shows that talking millennial consumers through their coverage options helps build trust – and can be an opportunity for cross-selling.

MILLENNIALS WANT TO WORK WITH AGENTS WHO: When looking for an agent, millennials want someone older and wiser who can help guide them through insurance decisions. 49 percent said they want to work with a seasoned insurance professional, while less than 10 percent said they want to work with someone close to their age. Just like older generations, they look for an insurance agent they feel they can trust and who will spend time getting to know them and their unique insurance needs.

MILLENNIALS ARE LOYAL CUSTOMERS Contrary to popular belief, millennials aren’t shopping around their insurance every year. In fact, once millennials find an agent, they are likely to stick with them. Two-thirds of millennials who use agents are satisfied with their agent, and 81 percent say they plan to use their current agent again. This is great news for independent agents! If you build relationships with millennial customers now, they are likely to stick with you and come back to you for future insurance purchases.

MILLENNIALS SHOP ONLINE BUT ULTIMATELY VALUE THE HUMAN TOUCH Unsurprisingly, millennials are almost three times as likely as baby boomers to describe themselves as tech-savvy, and they are twice as likely as boomers to buy insurance online. However, our research found that online channels are simply a route to connect with a human insurance agent. When it comes to learning about and choosing an agent, millennials ask family and friends for recommendations, but are also far more likely than previous generations to turn to the internet. 27 percent of millennials learned about an agent through digital engagement such as online search, reviews and social media. To choose between agents, millennials look at the agent’s online reviews, website and social media engagement. This means agents need to engage in a number of different digital channels to attract millennial buyers.

WHY DOES THIS MATTER? Millennials will make up much of the insurance market for the next few decades, creating a tremendous opportunity for IAs! So why does all this matter for independent agents? Millennials are now the largest generation of adults in the U.S., and will be for at least the next two decades. They are starting to buy houses and make more complex purchasing decisions. Less than half of millennials currently own a house, but almost 80 percent of non-homeowners plan to purchase one within the next 9 years. Our research found that millennials worry about “what-if” scenarios more than baby boomers. Independent agents can provide millennial customers with the ease, choice and advice they need to get the most comprehensive coverage and protect them against those “what-ifs”

ACTION TIME! Get ready to brainstorm!

ACTION TIME! Based on the research, what skills and abilities do you have that will help your agency attract millennial insurance consumers? Make a list of your top five skills and abilities Share your top one or two with the group So let’s talk about how this research applies to you. What skills and resources do you have that can help you build trust with millennial consumers? For example: Maybe you are really good at explaining insurance well or making complex things simple, maybe you’re good at building relationships online. Take a few minutes to brainstorm.

ACTION TIME! Based on the research and reflecting on your agency, what opportunities do you see to attract millennial insurance consumers? Make a list of the top five opportunities you see in your agency Share your top one or two with the group Now think about how your agency could reach more millennial customers. Where could you shift strategies to take advantage of the opportunities? What are some things you could improve on or try out?

ONE ACTION What’s one action that you can commit to? Share with the person next to you. - Start small: What’s one action you can commit to taking to reach more millennial customers?

THANK YOU! AgentfortheFuture.com Want to learn more about the research? Visit AgentfortheFuture.com for more insights, stories of winning agents, and practical advice to help your agency succeed.