Keeping Up with the “Pay Me Faster” Generations
Find out what Millennial and Gen Z policyholders think about—and expect from—their insurance providers, especially when it comes to claim payments. And learn how you can keep up with these “Pay Me Faster” generations—and increase the satisfaction of your older policyholders at the same time.
In 2020, the oldest millennials (born in 1980) will turn 40, and by 2025 the Millennial generation will earn 46% of all income in the United States. At the same time, the oldest members of Gen Z have already graduated from college and are entering the workforce by the millions1.
As these two generations continue to move slowly into the driver’s seat of the global economy, they are having an outsized impact on consumer habits and behaviors. Younger generations have almost always led older ones in the adoption and use of new technologies, and today Millennials and Gen Zers are responsible for defining our biggest consumer trends and driving most of the demand for mobile and personalized digital experiences—including real-time digital payments.
So what do these increasingly influential groups expect from their insurance providers, especially when it comes to claim payments? And are insurance companies ready to meet those expectations as their Millennial and Gen Z policyholders move further into adulthood? This year, VPay commissioned a survey through Engine Insights to explore the answers to these questions, and the results paint an eye-opening portrait:
- 82% of Millennials and 81% of Gen Z respondents said same-day claim payments were somewhat or very important to their claim experience, compared to 69% of all survey respondents.
- 68% of Millennials and 90% of Gen Z respondents said that they would be willing to switch insurers to get instant claim payments, compared to just 53% of all respondents.
- <87% of all participants said that the speed and quality of their claim payment experience impacted their overall satisfaction somewhat or very much.
- Nearly 60% of respondents—all of whom had filed an insurance claim in the past three years—said they received their last claim payment in the form of a paper check. For more than half of them, that check took longer than four days to arrive.
In other words, instant (or at least the same day) claim payments are important enough to Millennial and Gen Z policyholders that most of them would consider switching to an insurance provider that offers them. But today, more than half of those payments are still being made with the same slow, inconvenient paper checks their Baby Boomer grandparents received 50 years ago.
These results show that Millennial and Gen Z policyholders care deeply about the speed and convenience of their claim payment experiences, and they basically expect their providers to offer instant or real-time claim payments as an option.
Of course, the growing influence of these young, “Pay Me Faster” policyholders is just one factor driving the movement toward real-time payments. The same survey revealed that fast, convenient claim payment experiences are a high priority for policyholders of all ages and income levels. And although instant claim payments are less important to Gen X and Baby Boomer consumers right now, history shows that they will likely catch up in a few years (four years after the original iPhone’s release, only 25% of Boomers owned a smartphone. Today, 68% do2).
To learn more about the complete results of the Engine Insights Digital Payment Survey—and how payments can impact the overall satisfaction of all your policyholders—read this detailed white paper and check out this informative infographic.
And of course, VPay is ready to help with a Total Payment Solution that delivers fast, convenient digital payment options—and lays the groundwork for the instant claim payments that 80+% of policyholders say they want.
Download our white paper to learn more about the VPay/Engine Insights Digital Payment survey – and find out what your policyholders want their payment experience to be.
- Source: https://www.kasasa.com/articles/generations/gen-x-gen-y-gen-z
- Source: https://www.pewresearch.org/fact-tank/2019/09/09/us-generations-technology-use/