Changes within the demographics of the U.S. population will impact all aspects of society – whether it relates to changes in where people choose to live, what they do for a living or what they buy. Businesses are already seeing the impacts of a changing workforce and customer base – where four distinct generations (Generations X, Millennials, Baby Boomers and the parents of Baby Boomers) are working side-by-side or potentially purchasing their products.
Changes in demographics also have the potential to affect claim frequency and severity patterns. Historically, as people have aged, they have become safer drivers – driving less overall and often at off-peak times. Retired seniors have been more fiscally conservative, often holding onto a vehicle longer. As Baby Boomers enter retirement, an estimated two-thirds will have the financial stability to spend, bringing with them buying patterns that look a lot more like a younger generation than that of their parents. In addition, as Baby Boomers move into retirement, the wave of immigrants in the U.S. will add diversity to younger generations. These two factors will challenge businesses to develop strategies, products and services that can reach both the Baby Boomers and culturally diverse younger generations.
Understanding some of the anticipated trends and what different businesses have done to plan for these changes is an important first step. How will these anticipated changes in U.S. demographics impact the automotive claims and collision repair industries? There’s a lot to consider.
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