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Expectations of Younger Workforce will Impact Their Buying Behavior

June 17, 2010 7:11 am - Posted by Rick Tucker in Industry News, Opinion

According to a recent article in the New York Times, “By some estimates, more than 50 percent of life insurance agents in the United States are older than 45, and almost 70 percent of claims adjusters are at least 45.”  While the article focuses on the culture and social computing tools the younger workforce needs to thrive, the real story may be in the impact to how younger consumers buy insurance in the next 5 to 10 years.

Agent-based insurance companies have some interesting questions as to how they’ll service their customers, given the trends in younger consumers’ buying behaviors. So do financial services firms and banks that have historically focused on their branch channels. Today, systems can automate nearly every transaction involved in buying products, opening accounts, and processing claims. But it will be awfully hard to replace a handshake from the insurance agent or banker that gives many the promise of security for their lives, homes, money, and valuables.

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