PITTSFIELD, MA-A first-time survey conducted by Guardian Life Insurance Company of America shows Generation X (ages 30-45) and Generation Y (ages 18-29) employees foresee a lifetime of job mobility and career changes, compared to their baby-boomer parents. The survey’s results suggest that employee-offered insurance products need to change with the times, or risk being labeled as hopelessly outdated.
“With this amount of change, we have no choice but to understand that our products need to fit the changing expectations of the market,” commented Larry Hazzard, vice president of product strategy with Guardian Life Insurance, Berkshire Life Insurance Co., a subsidiary of New York City-headquartered Guardian Life Insurance of America .
The problem, he continued, is that the insurance industry is typically a slow-moving one and isn’t necessarily picking up on the needs of the newer generations.
“The roots of the products available now extend back to a time when society was very different,” Hazzard explained. “Back in the day when people signed up with employers with the expectation they’d be there for life.”
But that doesn’t seem the case today. The Guardian survey, conducted by Opinion Research Corp., noted Gen Y respondents anticipating an average of 8.3 career changes throughout their working lives. Gen Xers, in the meantime, anticipated changing jobs and/or careers 5.5 times.
The survey also pointed out that while today’s younger professionals assume their working lives will be less predictable than their parents’ career paths, they still want the ability to obtain insurance and other benefits through their employers.
Those from Generation X considered auto and homeowner insurance to be “extremely important,” while their younger counterparts believed that identity theft insurance essential. Generation Y didn’t consider homeowner and auto insurance to be that important. Both generations believed retirement savings plans, and life, long-term care and disability income insurance were essential.
Hazzard, who is a parent of two Generation Y college graduates, acknowledged he was somewhat surprised the survey revealed an increase in the number of career events Gen X and Gen Y participants expect to experience throughout their working life. “We’re getting close to double-digit career events,” he commented. “That was more than I’d expected.”
What also intrigued Hazzard was the “old school” response of employers or human resources advisors when it came to helping these individuals transition from one job to another.
“The response tends to be ‘why do I care if they leave,’” Hazzard remarked. “But one thing to keep in mind is that this group is far more networked than any other generation, and helping in this area of benefits can be extended, and leveraged, to bringing new employees in.”
The career changes anticipated among younger workers also provides an opportunity for brokers to sell additional coverage to these workers as they change jobs and careers throughout their lives, not to mention giving brokers a leg up when it comes to marketing to companies.
“We’re seeing a unique dynamic in the marketplace,” Hazzard commented, noting that the new marketplace will likely require extra coverage. “Following employees by providing extra coverage can help brokers get their foot in the door with employers, as it gives the brokers credibility.”
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