Despite a preference for researching and buying many products and services online, when it comes to insurance for themselves and their business, most Gen Y Business Owners (Gen YBOs) prefer to turn to the guidance of a trusted adviser.
In fact, according to research conducted by Cameron Research Group, Gen YBOs are quite dependent on these relationships to determine their business insurance needs through the value of advice.
Mr Philip Kewin, Zurich General Manager Sales and Marketing, Retail Risk, said “These findings highlight the importance young business owners place on having a relationship with an expert.”
“Clearly those young business owners who are thinking about insurance want to get the appropriate advice to ensure they have the right type and amount of insurance cover”, Mr Kewin said.
According to the research, the key reasons why Gen YBOs shy away from buying their business insurance online include:
- Business insurance is seen as being complex, particularly by those running a larger business
- Gen YBOs are time-poor and don’t have the time (or interest) to learn about insurance so they think it is best to leave it to the experts
- Gen YBOs are keen to outsource whatever they can in running their business. Business insurance is a category that falls into this behaviour
- They are believers in ‘bundles’ and ‘one-stop-shops’. Brokers perform such a service.
The average Gen YBO is typically optimistic and may not always see the need to pay now for what he or she sees as an “unlikely” future event.
According to Mr Kewin, “They have a ‘get it when I need it’ mentality, which means they need to be made aware of the importance of having insurance early on.”
Even when Gen YBOs do consider and take action with their insurance needs, they don’t want to manage any of the detail themselves. As long as they know the cover is there and it’s right for them, they’re happy.
“Gen YBOs, like many SME owners are extremely dedicated to their business. They don’t want to risk doing their own insurance in case they buy the wrong cover and end up losing their business because they ticked the wrong box.”
So the good news is once they are aware of the need for insurance, they are keen to establish a relationship with a trusted adviser who gets to know the business and takes care of the risk process for them. They are also likely to maintain that relationship throughout the longer-term life of the business.”
*Survey conducted by Cameron Research Group Pty Ltd (Insurance and the Gen Y Business Owner, 2011)