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:
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).
