What makes you sad about millennials

Totally digital: This is how insurance companies score with millennials

January 30, 2019

Millennials are ruining everything, the internet says: beer and Big Macs, the cinema, and even fashion. Millennials change everything, says ottonova - and is of the opinion: Your desire for digitization will revolutionize the health system from the ground up!

Would you describe yourself as digitally savvy? Are you interested in future technologies? If you are between 18 and 35 years old and answered “yes” to these questions, you are in good company: You belong to the majority of millennials for whom digital offers are part of everyday life. For example, 61% of them do their banking exclusively online.

So far, so unspectacular - if it weren't for the following exciting questions: How much digitization know-how actually flows into your personal health? And is your health insurance already as digital as your bank? Ottonova pursued these questions in a Forsa study and found out quite a bit in the process. In contrast to banking transactions, for example, only 4% of millennials plan their appointments online.

That's what this is about

The Forsa Institute asked Generation Y for ottonova and carried out a millennials study. In it 1,005 Internet users between the ages of 18 and 35 in Germany gave their opinion on their online behavior and their attitudes towards health insurance companies and banks.

The realization: You are like your mother.

Millennials face a lot of prejudice. This includes the accusation that Generation Y thinks of themselves first. According to surveys, nothing is more important to young people between the ages of 18 and 35 than their family. When it comes to decisions relating to finances and insurance, for example, many orient themselves to their parents: 61% of those surveyed have the same bank as mum and dad. Among the 18 to 24 year olds it is even 72%.

A somewhat more balanced picture emerges in the case of health insurance: Here, at 46%, almost half of the respondents are insured with a different health insurance than their parents, and for 30 to 35-year-olds it is even slightly more than half, at 54%. Younger millennials in particular see their parents as the best advisors when it comes to health insurance.

Your insight

What convinced you The top 5 reasons to choose a ...

... Bank

  • Favorable account management fees
  • Good experience from the parents
  • Customer service on site
  • Convenience
  • Wide range of digital services

... insurance

  • Good price-performance ratio
  • Good experience from the parents
  • Convenience
  • Good image
  • Fast feedback and processing of concerns

Aside from parenting advice, what motivates millennials to choose one bank or health insurance versus the other? In addition to the price and the experiences of the parents, around a third of those surveyed stated that they made the decision out of convenience (bank: 31%, health insurance: 29%).

So maybe finances and insurance are a bit like mom and dad jeans: sexy is different, but accepting the benefits our parents saw in it may well correspond to our desire for comfort.

"Finance and insurance are like mom and dad jeans: they shouldn't be sexy, but please be comfortable."

Health insurance? I'm not interested.

You can rightly be suspicious of this: Convenience when it comes to health insurance? A survey of almost 1,000 Germans showed that the most important things in life

  • Health (80%),
  • Partnership (70%) and family (66%), and
  • Financial independence (65%) are.

Health, family and money are directly related to health insurance. Shouldn't there be a little more than convenience behind finding the right health insurance?

Is health important to you? Then why isn't your health insurance choice?

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When you think about your own experience with health insurance, you may begin to understand why it is easier to base your choice on your parents.

Although each of us has health insurance from birth, we consider it comparatively seldom. Why? Because the subject is so dry and complex? Because tariffs are designed in such a way that they are difficult to understand anyway? And because most health insurances don't specifically target millennials?

So before young people take a detour into the jungle of the German health system and end up making a wrong decision, they prefer to choose a convenient route based on their parents' experience.

But isn't it the same with banks? Finances are complex too. But banks seem to be better able to pick up the younger generation. Many money-related services are much more convenient today than they were a few years ago. Banking with your smartphone? Almost every bank offers today. Digital services? But of course there is - a lot is happening here too at financial institutions.

And what about health insurance? When choosing insurance, digital services hardly play a role because there are simply too few such offers.

Your insight

While digital services are among the top 5 criteria when choosing a bank, they bring up the sad bottom in the field of health insurance: only

6 %

of those surveyed were convinced of their current health insurance because of the digital offer, while the banks are against it

28 %.

We can say that young people perceive banks to be more digital than insurance companies. We constantly check our account balance online; Every now and then, our health insurance company will contact you by post.

How “un-digital” health insurance is received by millennials and how reluctant they generally deal with the topic is shown by knowledge of private (PKV) and statutory health insurance (GKV), especially among younger millennials. For example, every third person thinks that there are no restrictions on taking out full insurance with private health insurance.

Your insight

What do millennials associate with private health insurance and statutory health insurance?

Preferential treatment at the doctor
PKV: 93% | GKV: 0%

PKV: 4% | GKV: 17%

Priceless in old age
Private health insurance: 67% | GKV: 2%

58% of millennials feel comparatively well informed about the digital offers of their health insurance - because the offer is manageable. In contrast, 51% see black in the service catalog of their tariff. The biggest black box are innovative offers and future trends: According to the Forsa survey, 74% state that they are “rather not” informed.

51 percent of millennials have no idea what benefits their health insurance will cover if the worst comes to the worst. 74 percent do not know which innovations they can expect from their insurance company in the future.

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The more digital, the more attractive

We can't blame you for the fact that health insurance and innovation make a difference to you like day and night. And that it is no picnic to get into the tariff jungle of private health insurance. And we think it's a shame that safeguarding your health has so far hardly found a place in your modern lifestyle.

The question is: what has to happen so that your health insurance becomes a (welcome) part of your digital life - even if you are healthy and want to stay that way?

The answer is digitization: If a health insurance company offered a completely digital service, 71% of the millennials surveyed would take advantage of this offer. Fully digital applies to all services - from the conclusion of a contract to all communication to support with health issues and formalities. Lo and behold: the more digital the topic of health insurance is, the more attractive it becomes.

71 percent of millennials would use completely digital health insurance.

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This is also shown by the experiences ottonova has had. A current customer survey shows: 97% of ottonova customers use our app, a quarter have already arranged a doctor's appointment through our concierge. When asked how relevant the digital doctor's visit is for them, 65% of ottonova customers answered with very relevant. Only 1% consider the service to be irrelevant at all.

Ottonova's approach is completely new. Our services show that we interact with customers and want to make things as easy as possible for them.

Dr. Bernhard Brühl board member at ottonova

ottonova hear you - our love letter to digitization

Finally, one more important point: digital is not always digital - the quality has to be right. The success of a digital revolution does not stand and fall with the hundredth invoice scanner, but with digital services that really bring something.

The more millennials demand this, the more likely there will be a rethink in the insurance industry. Here are three reasons why you can be part of a real digital revolution with ottonova today.

1. Our concierge makes everything easier. ottonova says: No matter what you need for your health - detours are absolutely taboo!
2. Our app makes you happier. ottonova believes: Digital services must not only function in theory, but must also work in everyday life.
3. We just change everything. ottonova thinks: digitization - the time is now.

In summary this means:


Sabrina Quente

Sabrina is a freelance writer for insurance and digitization topics. She was an editor for trade magazines and got to know the many facets of the insurance world as a content editor at ottonova.