How Savvy Insurers Must Woo Millennials and Gen Z with Technology

Let’s face it: times are changing, and so are the generations dealing with insurance. The oldest millennials are hitting the ripe age of 42 and senior Gen Zers are stepping into their mid-twenties. Despite being often lumped together, these two generations stand on different ends of the insurance experience spectrum. Millennials have been navigating insurance intricacies for a couple of decades, while Gen Z is just starting to dip their toes into the world of policies and premiums — for those who have given them a thought.

Gen Z will become a significant market force in a matter of few years, so insurers will need to shift their focus to understand the unique characteristics and preferences of this generation. Gen Z, having grown up with advanced technology, may have different expectations than their millennial counterparts.

Millennials (steady at 40%) and Gen Z (20%) are expected to constitute a substantial majority of the American workforce by 2025.

Gen Z makes up 20% of the American population, which is 68.6 million. 57% of adults are enrolled in college and 38% have already joined the workforce (Pew Research Center)

Gen Z’s insurance perceptions are different from that of millennials

In the insurance world, Gen Z is a potential market that cannot be ignored. While many have insurance, a good chunk of them still ride on someone else’s policy — 30% for auto and 24.3% for property. There’s an opportunity here for professionals to make a move.

What we know about Gen Z insurance trends is that they are okay with auto coverage, but property coverage seems a bit pricey for their liking. It’s a chance for insurance pros to break down the value and practicality of property coverage and reshape their views. A survey by Rocket Mortgage 2 years, back found that 45% plan to own their own home in the next 5 years but a majority of them might prefer to be renters. Will they all opt for home or renter’s insurance? This is a good market for insurers to tap into because Pew Research in 2023 found that 16.2% of Gen Zers who currently rent or own property haven’t yet opted for insurance coverage.

Here’s another insight: not many Gen Zers are familiar with umbrella insurance — about a third, to be exact. It’s an education gap that experts can fill, explaining why it matters. In the ever-evolving world of insurance, these are the opportunities pros shouldn’t miss.

The millennial insurance perception has been shaped by supportive Baby Boomer parents and a more prosperous upbringing. Raised in a time of lower rents and better property opportunities, they developed a sense of independence. Millennials, with their stable upbringing, often followed a traditional path of settling down, purchasing homes, and acquiring insurance as a part of life’s milestones.

In contrast, Gen Z was raised in a world where instant access to information is the norm yet increasing inflation has got them living paycheck to paycheck. Many have learned from the high student debts that millennials have been reeling under and have opted for the gig economy. Insurers have to respond to this with customized plans, for instance, Verisk offers coverage options for ride-share and food-delivery drivers. Gen Z insurance trends point to personalized, on-demand services and they are more likely to be attracted to products that can adapt to their changing circumstances.

Gen Z insurance trends point to personalized, on-demand services and they are more likely to be attracted to products that can adapt to their changing circumstances.

From meeting the seasoned expectations of older millennials’ insurance needs to addressing the emerging concerns of Gen Z, technology will be the transformative power.

Why Insurance technology must keep up with evolving consumer dynamics

The full article is an interesting read published originally at: https://www.simplesolve.com/blog/how-savvy-insurers-must-woo-millennials-and-gen-z-with-technology-simplesolve

Originally published at https://www.simplesolve.com.