Gen Y business owners want trusted financial advice when buying insurance

Most Generation Y business owners prefer speaking with a financial adviser for their insurance needs rather than going online, according to research commissioned by Zurich Financial Services Australia. 

Conducted by Cameron Research Group, the study found that most business owners aged around 30 or under preferred speaking directly with financial advisers because they wanted to ensure they had the right type of insurance cover for their business.

The key reason why Generation Y business owners tend not to purchase business insurance online is because it is often seen as being complex, particularly by those running a larger business, Zurich stated. Although they are generally tech savvy, this particular age group are also time-poor, believing it's better to outsource parts of their business operations and leave important insurance decisions to professionals, the study revealed.

According to Zurich general manager sales and marketing Philip Kewin, business owners in this age group are typically optimistic, and may not see the need to pay for insurance for something they consider to be an unlikely event. He said because of this attitude, they need to be made aware of business insurance early on.

"Generation Y business owners, like many small-to-medium enterprise owners, are extremely dedicated to their business," Kewin said.

"They don't want to risk doing their own insurance in case they buy the wrong cover and end up losing their business because they ticked the wrong box."

Kewin said most Generation Y business owners are happy to establish and maintain a long-term relationship with a financial adviser so that they themselves are not left dealing with the risk process associated with insurance.