Technology that saves time and improves the customer experience is being integrated into the insurance world rapidly. A large contributor to this change is the need to cater and appeal to the tech-native Generation Y (also known as Millennials) who, by 2025, will account for 75% of the global workforce.

For those born into a world where internet and smartphones have always been the norm, the old way of buying insurance isn’t sufficient — meaning companies are finding new ways to catch up.

It’s no secret that tech is changing the way many things are done for the better. The benefits of advanced technology have become normal in day-to-day life and in business, but only because many industries have recognised the benefits and have invested their time and money into new research and ideas.

Insurance, however, has sidestepped modernisation and is one of the last remaining industries to fully adopt digital transformation. The result is that consumers expect and demand the same frictionless user experience with insurance that they enjoy elsewhere, but are often left disappointed.

Technology has moved on a lot in even just the last decade. Old-fashioned recorded phone menus and voicemails that never seemed to get returned are now a thing of the past. But more could still be done.

Some forward-thinking insurers and brokers are having real success with their adoption of new technology. A great example is Allianz’s partnership with Sightcall, a company that cuts out the need for an adjuster to make a home visit when a claim is made on a home insurance policy. The Sightcall application enables the policy holder’s phone camera to directly link real-time video to the adjuster, saving time for all parties.

So far, through the use of Sightcall, Allianz have saved 6.3 million kilometres worth of travel that used to be spent going to customer’s houses. The result is an improved customer experience, a commercial benefit to the insurer, and to top it off, a reduced environmental impact. A true win-win.

These success stories are cropping up more and more. A recent study in the US has shown that 75% of insurance customers today would consider changing insurance providers should they not have the ability to tailor policies to their individual needs. This shows that consumers do not necessarily have loyalty with their provider.

This demand for flexibility will only increase more and more as Generation Y matures into the insurance market. Millennials are thought to be largely responsible for the depreciation in customer satisfaction, which is now at an all time low of 29%.

Vijay Amballa of Capgemini explains Generation Y’s desire for a seamless insurance experience: “If you do give them that [seamless experience] opportunity and the tools, such as a mobile or chatbots… once they have that ease of use, they are very likely to come back to you and stay with you, for them the most important part is comfort, ease and speed.”

Those who adapt and innovate will find that Millennials become their loyal customers. While it’s true that some in the industry are a step behind, companies like Sightcall and Artificial are pioneering new technologies — and therefore cementing their place amongst a new generation of consumers.

For further reading on the coming impact of Generation Y on the insurance industry, see the following:

Changing customer expectations regarding insurance providers: the Gen Y effect 5 technologies that made major impact on insurance industry