The generation game
- July 14, 2016
- Posted by: Simon Wait
- Category: IBIS News
Paul Davies, head of innovation, Audatex UK offered IBIS Ireland 2016 delegates an insight into generational behaviour change by saying, ‘we need to change how we do things’.
Paul opened his session ‘Digitalisation and Gen Y’ by highlighting how the insurance sector is the only industry to have made two annual profits since 1944 – the first in 1944 and the second only two years ago. He told delegates, ‘buying insurance is the ultimate grudge purchase.’
Paul then went on the explain how generational behaviour is changing with Generation Y, also called Millennials, living their lives through a screen. ‘They are a very digitally agile generation – they interact differently. They spend a lot more time in front of the screen (six to eight hours per day). They do things differently – it’s not a conscious shift, it’s just what they do,’ said explained Paul.
Highlighting the many areas of new interaction driven by generational change such as buying decisions, social networking and user generated content Paul said, ‘today people suffer with separation anxiety from their smartphone.’
With that Paul then turned his attentions to apps and how they are increasingly becoming ‘the place to consume info’. He said, ‘apps have become trusted and can be placed in the palm of people’s hand.
‘Traditionally insurers have found it difficult to ensure they are in the palm of people’s hand outside of when they have a claim – you have to have value and there are not many chances to do this throughout.’
Paul suggested that by 2020 – Generation Y and Generation Z will make up well over 60% of consumers – ‘So we need to change how we do things’ said Paul.
He continued, ‘The expectations are really high – there are some real questions that need to be solved for this group of customers. I would imagine the biggest shift for insurers is moving control back to the customer – they want to be in control and technology is the key in doing this to improve the experience for everyone.’
IBIS Ireland 2016 was headline partnered by AkzoNobel and Audatex, along with partners Fastcare and Enterprise.