Look, one doesn’t get a degree in Actuarial Sciences by cramming the night before their exam and then going on to “wing it” in the exam itself, but as hard as these numbers people work behind the scenes in the financial industry, when it comes to coming up with a viable model to provide insurance for the so-called Millennial group, they really have their cut out for them. There are what are referred to as wildcard cases in the financial industry, particularly with insurers and a wildcard is basically that prospective client seeking coverage whose case is especially tricky to categorise according to the many parameters and classifications typically used to assess their risk profile and to ultimately determine their insurance premiums.
So where there’d be a classification structure such as that of assessing risk profile according to income, skills, age bracket, work experience, living environment/area and the likes, used to determine the range of premiums to be possibly paid, a wildcard would be something like that prospective client who is perhaps self-employed, possesses self-taught skills (instead of having a formal qualification) and yet they have a proven track-record of doing a good job. For an insurer this would be a tricky case to have to deal with since it doesn’t represent any typical scenario into which prospective clients are categorised to fall in line with the most appropriate insurance package they would be advised to go for, and of course the premiums they’d have to pay.
One wildcard case out of every few hundred can be dealt with rather easily, but when it comes to Millennials, it appears as if the whole lot are wildcards!
The basic life skills which were considered to be a standard part of life with their parents and grandparents seem to have been lost in translation when it comes to Millennials. For one, something once considered to be a basic skill as changing a light bulb sees the average Millennial in somewhat of a bind if you were to ask them to replace one for you.
A study conducted by CORGI HomePlan found that a full 12% of under 35s admitted to struggling with changing a lightbulb, while 43% struggled with wiring a plug. 32% were uncomfortable with attempting to change a fuse, while 52% admitted to not knowing how they’d even begin to approach hanging wallpaper.
There were quite a few more basic skills zoned-in on by the study, while over 55s were much more comfortable completing what are these basic tasks to them.
Now, put your mind in the shoes of the insurers who have to come up with insurance plans based on these parameters for their evaluations. Would the overall insurance basket for the typical household cost more with the insurance industry’s knowledge of the over 55s in the house climbing step ladders to change the light bulbs, for example? Would household insurance specifically go up in premiums because the Millennial tasked with maintaining the fence is more likely to call out a repairman instead of fixing it themselves?
Either way, when it comes to picking out an insurance plan, whatever area of your life you’re insuring, what ultimately matters is that you have adequate coverage – the coverage must be able to provide for you in case of whatever legitimate eventuality triggers a claim.