Rise up and conquer the selfie generation

One of the cornerstones of modern psychology is Maslow's hierarchy of needs which was published in his 1943 paper A Theory of Human Motivation. It provides us with keen insight into human motivation and what drives us to react and respond in certain ways.

A key principle of Maslow’s theory is Self-Actualisation, which are the actions taken by humans to make themselves the best that they can be. How is this relevant to the insurance industry? We need to ask how far are we from insurers stripping old products bare in order to build completely new products to suit individual client’s needs.

A place in this world

This is a tough task for insurers, especially larger industry players who may have thousands of clients. It is especially difficult for brokers who may also have to now reacquaint themselves with a different product for a different client, a tough task when you see hundreds of clients a month. So is there a place in this world for personalised insurance? The same question was asked by an Australian insurer in 2013.

David Powell, Insurance Agent at Elders Insurance Metro Melbourne, has been in the insurance industry for more than 30 years and has tracked the subtle shifts occurring in recent times.

"Probably the biggest change I've seen is the inroads of direct sellers through the internet. It is possibly changing the face of insurance, particularly for personal lines insurance," Powell explains.

While the internet has made it easier and quicker to access such sellers, what may be sacrificed along the way is the context and sound advice that an adviser can provide.
Powell adds that clients often will make their decision based solely on the price, without being able to compare the benefits of the insurance package with those of other products on the market.

Consumers also run the risk of purchasing insurance policies that don' not provide them with the cover they need.

The selfie generation

Unfortunately, the days of clients asking what you did for their families are riding off into the sunset. The generation of millennials have gone through a process of inner enlightenment where they are now acutely aware of the role that they can play in influencing society. They think of it as flexing their muscles, others look at it as them being selfish.

According to a recent survey, this is having a significant impact on societies around the world. Seventy-one percent of American adults think millennials are selfish while 65% of them think millennials have a deserved sense of entitlement.

We see these influences in South Africa as well. Think of the recent #FeesMustFall campaign. Many people were split down defined lines of students being selfish and students acting out of a deserved sense of entitlement.

The role of the broker

What we need to be aware of is that millennials are no longer content with sitting in the shadows waiting for change. If a millennial does not get what they want, then they will go to another company. The world is their oyster and if the right policy is not offered to them, they will move on.

What does this mean for the broker? It means that the broker is in the best position to help companies design products to suit client’s needs. Sitting and consulting with clients instead of presenting them with a sale’s pitch is the future of the industry.

This future is neither far-fetched nor is it far off. The Financial Planning Institute recently released its new Code of Ethics where it says that advisers need to sit and consult with clients on a regular basis to cater for their needs. The days of the broker following suit cannot be far off.