Millennials (born between 1981 to 1996) and Gen Z (between 1997 and 2012) are changing the way businesses connect with their customers, and the mortgage intermediary sector is no exception.
According to a recent YouGov survey, 76% of UK consumers prefer to purchase home insurance policies online. With Gen Z and millennials leading this shift, the pressure is on to meet their expectations.
These two demographics, raised in the age of technology, prioritise convenience, personalisation, and value-driven brands. The mortgage intermediary sector needs to find ways of nurturing this age demographic in a way that resonates.
Timing is key
Since introducing UinsureCX in early 2023, our digital-first home insurance journey, we have seen over 200,000 mortgage customers receive automated digital communications on behalf of our intermediary partners. We’ve learned a lot about the behaviours of different age demographics and buyer types, but one thing is for certain; digital convenience is great, but timely engagement is key.
Our research found that 86% of mortgage customers appreciate receiving home insurance information at key moments in their mortgage journey – such as offer, exchange of contracts and completion.
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The takeaway? Intermediaries can take advantage of their unique position to provide this perfectly timed information that adds immense customer value.
Balancing digital convenience with human expertise
Millennials and Gen Z crave trust and transparency in their financial dealings. The challenge for intermediaries lies in striking a perfect balance between leveraging digital efficiencies and providing the human touch.
Advisers play a unique role by offering valuable advice at the right moments, becoming trusted partners for clients who are increasingly managing their lives through their phones. By combining digital convenience with the human touch, intermediaries can truly connect with and support this tech-savvy demographic.
Addressing price sensitivity among younger consumers
For millennials and Gen Z, price plays a critical role in their decision-making process. While they expect seamless digital experiences, they also prioritise value. In fact, our data shows that 72% of consumers place fair pricing at the top of their list when choosing home insurance.
Price-sensitive consumers are not always looking for the cheapest option – they want the best value for their money. It’s important to emphasise the long-term benefits of well-structured insurance policies, with a clear breakdown of costs that demonstrates value beyond just the price tag and empowers younger customers to make well-informed decisions.
Looking ahead to a hybrid future
The future of financial services is hybrid.
As millennials and Gen Z increasingly turn to digital platforms to manage their home insurance, mortgage intermediaries should adapt by offering both automated solutions and personalised service.
It’s all about blending digital convenience with expert advice that feels relevant and personal. Those who embrace this hybrid model will thrive in the evolving marketplace.
