As technology continues to develop and Millennials age, it’s become more important than ever for traditional industries to keep up with their younger customer base. One industry that has identified the need for change in particular is insurance, with many firms determined not to be left behind.

Insurance is not always the most accessible industry at any age, but it remains a vital one – something many Millennials are continuing to learn as they venture out into the world or settle down themselves. In an effort to provide a more inclusive, secure and high quality service, many insurance firms have turned to today’s most exciting technologies to refresh insurance for a younger audience. The result is a huge shift within the industry.

1. Wearables & Health Insurance

We’re living in the most health-conscious era of human history, so it makes sense that insurance firms are looking at new ways to ensure better returns on health insurance coverage.

Combining this need with our current fascination with wearable technology, firms have introduced wearable health tracking. Incentives for customers include vouchers, an Apple Watch and even free gym memberships in return for staying active.

What’s more, the data collected from these wearables provides insurers with priceless insight into their customers’ habits, and can lead to individuals making a hefty saving on their insurance.

It’s not just human insurance benefitting from the wearables obsession, either. Global insurer RSA recently made an investment into PitPat – a device worn by pets to measure their health and activity, allowing for more accurate pet insurance premiums. The device is hoped to help defeat Britain’s obese pet crisis, by encouraging owners to keep pets active and healthy.

2. Telematics

Automotive black boxes – or telematics – are not a new invention, but their use among Millennials is profound. Using GPS to record the handling of a car and the quality of driving, the smartphone-sized box reports back to insurers directly. Depending on the information they receive, drivers may benefit from anything up to a 20% drop in the price of premiums – or they may have to face further price hikes until your driving improves.

The reason the black box is particularly popular amongst young drivers, is because this age group is often penalised by having to pay higher insurance prices, because of age along. With telematics installed in their car, they can prove their driving is of a high standard and shave off hundreds from their renewals.

3. Gamification

Insurance giant Aviva poached a game designer from Activision and set to work bringing gamification to the industry. The Aviva Drive app rewards safer driving with points, and provides drivers with a more engaging experience on their smartphone, providing transparency around what information will be shared with the insurance company.

Despite the benefits for customers – safer driving, cheaper renewal costs, etc. – Aviva is the real winner. With the help of their app, the firm are able to create better targeted marketing campaigns, alter price banding for different customer segments, and thanks to its approach, customers are more likely to continue using the app and Aviva.

4. AI Renaissance

Before the days of online portals and comparison websites, insurance was handled by a broker, and customers’ needs were directly addressed by a specialist. Now, that’s a little harder to come by – much to the detriment of uncertain Millennials. However, London-based startup Brolly hopes to make that ideal relevant to the modern world again.

Brolly uses AI and machine learning to manage customers’ insurance portfolios. It provides a single location to view, manage and buy insurance policies via an app. Brolly will intelligently advise customers on the best insurance for them, based on their needs and preferences – emulating the old way of doing things for a tech-savvy audience.

5. On the Go Insurance

Last year, a ‘Tinder-like’ insurance app aimed at Millennials swept the headlines, offering a straightforward method for affordable coverage of up to three items on a pay-as-you-go basis. The app – Back Me Up – from Ageas, asks users to take a picture of their key items and offers insurance for £15 a month.

What’s most interesting about this product is its target market. Whereas any of the other technologies we’ve mentioned in this article could find their way into the lives of people at any age, Back Me Up is aimed squarely at Millennials, and isn’t available to anyone aged over 50.

Revolutionising Insurance at Any Age

Despite the tech-focus of the insurance industry’s new strategy, customers at any age could benefit from the technologies mentioned above. After all, everybody wants their good driving and active lifestyle to be acknowledged, and what better way than by providing insurance firms with a more accurate insight into our individual lives?

Kaleida create bespoke software solutions, addressing the needs of clients in insurance, education and a number of other leading industries. Talk to us to find out how Kaleida can help build a tailored solution to fit your organisational needs and long-term goals.