At 76.6 million, millennials are the country's largestgeneration and also the fastest-growing consumers and employees.They bring $1.68 trillion in purchasing power to the table,according to the U.S. Census Bureau. Smart agencies will develop aplan to attract, serve and retain these individuals, as they willhave a great deal of influence on the profitability of insuranceagencies both now and in the future.

Applied System's “Why Millennials Matter” report, based on anindependent survey, discusses how millennials research and purchaseP&C insurance, and their concerns and behaviors regarding theinsurance industry.

First, a tutorial: Millennials include nearly 80 million peopleborn after 1980 in the U.S. They use mobile devices more than anyother generation and are constantly connected to the world aroundthem. Also referred to as “Gen Y,” Millennials have highexpectations of all businesses, including their employers.

Millennials are true digital natives and social networking isimportant to their lives. They navigate seamlessly among devices,through which they typically send more than 100 texts a day. Theyhead online for support: 80% of this demographic visits socialmedia sites daily and more than half browse their feeds and postthrough their mobile devices. An online search is the first step tofinding a solution for 71% of millennials—and once they begin, theyexpect a solution within 80 hours.

As buyers and sellers in the insurance industry, Gen Ychallenges agents and brokers, as millennials have their ownattitudes and preferences toward digital technology.

Most notably, millennials turn to devices and social networks tocommunicate their opinions about brands and services. Forty-fourpercent do this by text message, 16% by blogging, 38% on socialmedia and 38% on instant messaging, according to figures fromGoldman Sachs.

Agents must offer multichannel service and product options toGen Y, as they are attracted to insurance companies that provide aclient-centric experience. A strong presence through digitalchannels and social media establishes an agency as a source foreducation, thought leadership and product information.

Of 1,000 millennials surveyed by Applied Systems, 91% had someform of P&C insurance coverage, of which 89% have autoinsurance, 55% have homeowners and 42% have renters' insurance. Anonline presence is necessary to target this generation for personallines sales, but because Gen Y splits auto insurance purchasesamong face-to-face, online and telephone sales, the role of theagent as a trusted advisor remains critically important.

Gen Y is social by nature and relies heavily on referrals intheir buying decisions. More than half of the millennials surveyedasked family and friends for insurance advice, 27% use an onlinesearch engine and 13% reviewed social media sites such as Yelp.