What do Gen Z insurance consumers want?
What do Gen Z insurance consumers want? | Insurance Business America
Insurance News
What do Gen Z insurance consumers want?
Information and tools are pieces of the puzzle
Insurance News
By
David Saric
For insurers looking to cater to a Gen Z audience that prefers independence in their e-commerce purchasing habits, providing additional resources and unbiased information could prove crucial.
“Gen Z is not really working with a broker for the insurance they may need, like auto or rental coverage,” said Jason Keck, founder and CEO of Broker Buddha.
“You want to leverage as much third-party data as possible to be able to provide quotes and facilitate binding policies, which can be done through comparison and other digital tools.”
Furthermore, plugging into more contemporary payment methods such as Venmo, PayPal and Apple Pay can allow carriers to create a more accessible insurance shopping experience.
In an interview with Insurance Business, Keck spoke about why both information and business transparency is important for Gen Z insureds.
Avoiding hiding anything in plain sight
When speaking about what matters most to Gen Z consumers, Keck noted how transparency should be top of mind for carriers who are catering to this growing consumer base.
“When I think about transparency, the first thing that comes to mind is price comparison,” he said.
They may think “how does the price of my coverage compare to what else is being offered out there,” so being able to leverage that opportunity for more informed choices rather than just settling for one available option.
Gen Z is also interested in having more insight into what exactly a policy covers and excludes, and not having to read exhaustive fine print to locate that information.
Keck illustrated an example of when the younger generation is needing to purchase travel insurance for an upcoming trip and how trying to pinpoint how this policy can be beneficial is not very easy.
“For people who haven’t spent a lot of time around insurance, they’re guessing a lot,” he said.
“It’s not a good feeling when you are forced to have to purchase something but don’t really understand the extent to which it is beneficial.”
Keck attributed this to having a vast amount of information, both good and bad, at their disposal.
Gen Z is a lot more comfortable online than other generations, millennials included. Being digitally native is a unique characteristic of this group and something that is likely to shape the experiences companies create for them.
Being cognizant of a company’s ethical profile
Another form of transparency that is important to Gen Z consumers is knowing how a company operates on a broader socio-economic level.
“I can see how social justice movements and topics related to ESG issues and corporate trade now is permeating into the younger generations,” Keck said.
“And I could see why awareness about those things could be could help influence sales.”
For companies that are harnessing their power and influence to support a common good, this can present favourable business opportunities for a generation that wants to put their money where their mouth is.
“I can see why that kind of information could be a bonus or a value add at the point of sale,” Keck said.
He recommends that insurers who are actively involved in various social, economic and environmental causes, and not just greenwashing tactics, can leverage that pledge more holistically as a selling point.
“It isn’t farfetched to think that if a Gen Z consumer were to find a policy that was 10–20% more expensive from a company that has better social and business values, that they would choose that product over a cheaper option,” Keck said.
Emphasising actionable ESG commitments can also be a successful way to attract younger talent as the insurance industry experiences a professional shortage, as they are more inclined to work for companies with a more nuanced moral compass.
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