Why you should target the Generation Y demographic for health insurance.
A couple of weeks ago, I posted this article about texting and the young adult demographic, which happens to account for the largest population of underinsured and uninsured Americans. Today, I’m going to take a look at this demographic (19-29 year olds) from a couple of different angles to develop a better understanding of this particular market segment.
Why target 19-29 year olds?
There are many reasons for going after this demographic. First and foremost, as stated above, they make up the largest portion of uninsured in America. Obviously, with health care reform as it currently stands, at least the current older half of this age group will need health insurance in the very near future. Remember, some in this age group will now be able to remain on their parents’ plan until the age of 26, but this still leaves millions of potential clients at your disposal. Having (most likely) never purchased their own insurance, no deep ties to any prior agency helps to make this group particularly rife with sales potential.
How are these prospects currently being marketed to?
Some companies have decided to make this population segment the focal point of its business. Next Generation Insurance, for example, has devoted its efforts to the collegiate crowd, primarily for property and casualty, but offering health and life policies as well. Blue Cross Blue Shield offers a policy called Young Adult Blue and is specifically for 18-30 year olds. What’s the common thread between all of these policies and the way they’re promoted? All of the sites focus more on the price of the policy or the money the client doesn’t have over the coverage their policies offer.
What can you draw from this?
As you would expect, the lower the income for a young adult, the less likely they are to have health insurance. Therefore, many of these companies focus on one thing: The bottom line. With no proclivity for one company over another and little money to spare, agents have to build policies for this group that are relevant to them. Young adults, as they see it, only need coverage if they’re injured in a car accident or tear an ACL in a pickup game of basketball, not for extended hospital stays or lengthy illness treatments. Writing a practical policy will, in turn, keep their monthly costs to a minimum. By looking out for their bottom line, you will be in good position to help out your bottom line.
Agent Sales Journal ran this article interviewing agents about their perceptions of Generation Y that I recommend reading. The biggest thing I think you can take away from it is something we’ve talked about on this blog plenty of times before: Web presence is critical.
The Kaiser Family Foundation released this brief in January. It gives a pretty thorough analysis of young adults as far as finances and circumstances as they relate to various health care issues.