Age may determine how much health and life insurance companies spend trying to get people onboard. A new study shows health and life insurers pay much more attention to Baby Boomers than they do to Generation X and Generation Y.
In the 12 months ending June 2009, Gen Xers received 15 percent fewer health insurance marketing direct mail pieces than Boomers, according to research from Mintel Comperemedia, a service that provides direct marketing competitive intelligence. Gen Y saw even fewer offers: 25 percent less than their parents’ generation. For life insurance, the younger generations are equally ignored: Gen X and Gen Y got 18 percent and 23 percent fewer mailings, respectively, than Baby Boomers did in the past year.
“Health and life insurers seem to favor marketing to older adults, but in doing so they’re missing vast market opportunities. All generations can benefit from health and life insurance coverage, so age shouldn’t dictate insurers’ direct marketing strategy,” said Daniel Hayes, vice president of insurance services at Mintel Comperemedia.
Recent consumer data from Mintel shows Generation X is very interested in health and life insurance, despite getting less direct mail. Gen Xers are less likely than average to say they own non-employer based life or health insurance, but they’re more likely to say they’ll purchase these products in the near future (17 percent more likely for health insurance, 23 percent for life insurance).
Furthermore, 63 percent of Gen X adults told Mintel “it is important to be well-insured when it comes to life insurance”, versus just 58 percent of the general population agreeing with that same statement.
“Generation X is under-served and over-interested in life and health insurance, making them the perfect target market,” said Daniel Hayes. “Because Gen Xers are concerned about providing for both young children and aging parents, adequate insurance coverage is extremely important. They want to keep themselves and their dependants healthy, but they also need to know their families will be provided for if they aren’t around.”
Mintel says Gen Xers are 72 percent more likely than the average American to say they’re currently saving for a child’s education. But at the same time, they’re preparing to support their parents: 53 percent of Gen Xers say they expect to be the primary caregiver for a parent or other relative.
Source: Mintel Comperemedia
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