As GEN Z is old, it soon became one of the most influential consumer groups in the global economy. Born in 1997 and 2012, this original digital generation is famous for its technical commodity, a pragmatic approach to money and social awareness. But a sector is still struggling to attract its attention.
A study conducted in 2024 conducted by the National Insurance Commission (NAIC) found that less than 21 % of the Gen Z adults carry insurance on tenants. Lower life insurance rates. A study conducted by smart people in March 2024 revealed that Gen Z has any generations when it comes to major insurance products. Only 5 % have content insurance, 24 % have life insurance, and 30 % have travel insurance. This separation stems from more than just indifference. Gen Z is moving in an unstable labor market and difficult economic reality, from high housing costs to students’ debts. In this environment, insurance can look luxury or just something to think later.
Gen Z-scattered are skeptical in traditional financial institutions. They are digital citizens who grew up amid economic instability and wrong information online. Many see insurance companies as mysterious entities that depend on profit that make it difficult to understand coverage and even the most difficult to submit a claim. There is also a common belief among young people that insurance is necessary only when you are older or have a family. “I am in good health and I do not need life insurance” or “I will worry about insurance for content if something happens” in contributing to insurance.
Many individuals do not understand the value of insurance insurance or insurance providers. A poll indicated that two -thirds of the respondents of this age group believe that a lack of understanding or confidence represents a major obstacle to the insurance of purchase. The most disturbing thing is that a large part of the Gen Z (48.1 %) reported not to think about insurance at all or on the assumption that it was covered by other platforms they use.
The current separation is a unique opportunity for the insurance industry to re -invent itself and meet the needs of the Gen Z. Insurance companies can start through cooperation with the content of the content on Tiktok, Instagram and YouTube to break the insurance legends in linkable ways. Videos of the size of the sting that explains the insurance of tenants or how discounts make a significant effect.
Gen Z has originated in a digital environment where it is expected to expect easy payments and simplified operations. They demand simple payment options such as the first channels of societies and digital portfolios when considering any insurance purchases. Insurance companies must create flexible insurance products in the form of small commercial factors, such as securing the phone for a week, assembling a lifestyle coverage, or an input coverage disturbed for a month. Pricing, similar to subscription and the ability to operate the coverage and stop it digitally, will attract the needs and flexibility of the Gen Z.
A combination of low -home ownership rates, financial restrictions, lack of understanding of insurance, demand for digital solutions, and perceive that insurance is a low priority that contributes to the Gen Z’s frequency in purchase. Insurance providers must adapt to these dynamics to actively involve this new generation.
Gen Z is not an anti -insurance, they do not see themselves reflected in how to sell it traditionally. To earn their confidence and loyalty, the industry needs to simplify its offers, its conversion to its people. This should be more than a marketing but complete transformation of the mentality of its business.
“Why doesn’t General Z buying insurance?” It was originally created and published by International Life InsuranceThe brand owned by Globaldata.
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