Toronto, Ontario — A new survey found Canadian millennials, people aged 25 to 45 prefer texting with their insurance providers for certain parts of the claims process and view texting as an asset in regards to selecting an insurance company.
The study conducted by Hi Marley, found that 56 percent of Millennials and 52 percent of those aged 35-44, the mixed Millennial/GenX group said they would have preferred to resolve any portion of past claims using texting if that feature were offered by their provider.
An equal number of respondents in both groups, 56 percent, said they would use texting to help purchase a new insurance policy to text a sales agent, get a quote, etc.
The study also found 61 percent of Millennials said they would prefer to buy a policy from an insurance company that offers text messaging over a company that does not. The 35-44 age group was close behind in that sentiment with 58 percent reporting they would rather work with an insurer that provides texting messaging as a means of communication.
Both groups also cited group messaging as a means to improve the claims process with 53 percent of Millennials and 60 percent of 35-44 age group saying they would participate in a group texting conversation with their insurance company and another party, such as an agent, body shop or tow company, to resolve their claim.
However, one particularly interesting finding from the study was the majority of both groups said texting should be reserved for established relationships only.
When asked about communication preferences for a first interaction with a business, respondents in all age groups said that email (40 percent) or phone call (38 percent) is a more appropriate method of communication. Once a relationship is established, the majority of Millennials prefer to text — with 40 percent saying they would prefer to communicate via text over phone call or email.
“Millennials, and the 35-44 age range in particular, are on the go – they’re starting or growing families, buying houses, or are at the peak of their careers – and expect seamless experiences that fit into that flow. It’s no wonder they have a strong preference for texting. These groups are also known to be the most profitable demographic for insurance carriers, with greater opportunity for multi-lining and retention, and providers would be remiss not to digitize communication to future-proof their business,” said Mitesh Suchak, co-founder and chief operating officer at Hi Marley.
The study was conducted in August 2021, using a random sample of nearly 1,000 Canadian consumers, ages 18 and up and with at least one auto, home or life insurance policy.
