The financial crisis has shaken up investors’ trust in the industry and increased the need for investors to feel in control. Life insurers who understand exactly how Generation D feels about investing, will be in a better position to respond.

Investors are mitigating risks

As I shared last week, Millennials are more conservative and less trusting of financial advisors than Gen-Xers and Boomers. In fact, 43 percent of Millennials described themselves as “conservative” investors, compared with 31 percent of Boomers.

Accenture research also revealed Gen D investors are taking the following measures to mitigate risk:

  • Thirty-three percent of Millennials said they “seek comfort and predictability” in their investment options.
  • Twenty-eight percent of Millennials will not take a financial advisor’s advice without consulting another source first.
  • Boomers are least risk-adverse—only seven percent say they would never rely solely on their financial advisor’s advice.

Here’s what else Gen D investors said:

Gen D investors want to feel in control - Risk Avoidance issues
View the larger image.

Life insurers can help bridge the “trust gap” by offering investors the opportunity to learn about their options and interact with professionals. But offering these options in a way Gen D investors want to receive them will be key. Join me next week when I look at the tools that drive trust.

To learn more about Gen D investors, download Generation D: An emerging and important investor segment (pdf; opens in a new window).

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