Four Companies That Are Making Insurance Better for Millennials

Millennials don’t care much for insurance companies. Recent research from Bain & Company found that 80% of Millennials say they would move their insurance business to new entrants that are capable of creating and delivering more value than incumbent insurers, leaving incumbents especially vulnerable to insurtech startups. But when it comes to Millennials, what exactly is value, and how do insurance companies make good on it?

Over the last year, Cake & Arrow has been conducting research with Millennials to help the industry better understand this elusive demographic, and in doing so to answer precisely this question. In our research, we found that when it comes to insurance, creating and delivering value for Millennials goes far beyond price and convenience–the two areas where insurance companies have been especially focused as they invest in their digital transformation efforts.

Research suggests that for Millennials value exists in a hierarchy, and falls into four distinct categories: functional, emotional, life changing and social impact. Looking at the industry at large, we found that there are a handful of insurance companies, mostly startups, that are taking these values to heart, and designing solutions that not only address Millennial needs and concerns, but also resonate with their values to deliver value at the highest levels.

The carriers are:

Eusoh - Is community-based cost sharing, offering an alternative to insurance. A small, little-known startup, Eusoh has built a cost-sharing platform for pet-related veterinary expenses.

Life by Spot - Offers flexible, short-term life insurance with one to 30-day policies starting at as low as $7 a day. The insurance is geared toward travelers, athletes, and other risk-takers. Life By Spot applicants are instantly approved and there are few exclusions.

Toggle Insurance - Launched by Farmers Insurance late last year, it currently offers a renters insurance product, with adds-on like credit building and coverage for pets and side hustles. Toggle has plans to expand their insurance offering to create an entire ecosystem of modern insurance products geared toward Millennials.

Jetty - Is a new renters insurance startups geared toward and what makes Jetty unique from other startups is that they also offer Jetty Deposit, a way for renters to bypass the financial burden of coming up with a security deposit by paying a one-time percentage fee of the would-be deposit amount, and Jetty Lease Guarantee, a service by which Jetty will act as a renter’s guarantor, for a small percentage of the yearly rent.

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