As Generation Z, the newest cohort entering the workforce, begins to navigate the complexities of adulthood, their unique perspectives and habits are reshaping industries, including insurance. To capture the attention of Gen Z, insurers must adapt by leveraging social media, providing personalized experiences, and aligning with this generation's values. These were the key insights shared during a recent panel discussion at the Society of Insurance Research EDU Summer series.
Understanding Gen Z: A Demographic Snapshot
Generation Z, often referred to as Gen Z, constitutes about 18% of the U.S. population. This generation, which has never known a world without the internet, has grown up immersed in social media and digital interactions. Kendall Gadie, Associate Director at Com peremedia, emphasized that this tech-savvy generation relies heavily on social media for information and expects personalized experiences when engaging with products and services—including insurance.
Gadie highlighted that Gen Z is the most diverse generation in U.S. history, with over a quarter identifying as a race other than white and a significant portion belonging to the LGBTQ+ community. This diversity is not just a statistic; it’s a crucial factor that insurers must consider when developing product strategies, crafting marketing messages, and designing customer experiences.
“This is important for your product strategies and how you engage, the messaging you use in your marketing, and the language you use to address those different realities,” Gadie said. “You must create insurance products and experiences that have cultural relevance.”
Aligning with Gen Z Values: A Must for Insurers
Gen Z is known for being socially conscious and aligning their purchasing decisions with their values. They want to do business with brands, including insurance companies, that sha re their commitment to social issues. For insurers, this means going beyond traditional marketing tactics and engaging with Gen Z on a deeper, more personal level.
“The individual identity they have matters to them,” Gadie explained. “They want to know that you are engaging with them based on their likes, their personality, who they are, their cultural identity—not a typical mass-market approach.”
The Digital Expectation: Personalized Insurance Experiences
Growing up in a world dominated by digital interactions has set high expectations for Gen Z when it comes to personalized experiences. This generation is accustomed to having their preferences and behaviors recognized and catered to by brands, and they expect the same level of personalization from their insurance providers.
“This puts more pressure on insurers, and really all brands, to be able to del iver a tailored experience,” Gadie noted.
The insurance industry, traditionally viewed as slow to innovate, must now meet the challenge of creating seamless , personalized experiences across digital platforms. For Gen Z, the days of generic insurance offerings are over; they demand products and services that resonate with their individual needs and identities.
Social Media: The Go-To Source for Insurance Information
One of the most striking characteristics of Gen Z is their reliance on social media for researching products and services. This trend extends to insura nce as well, with many Gen Zers turning to platforms like TikTok, Instagram, and YouTube for information before making purchasing decisions.
Gadie’s research indicates that younger adults are increasingly bypassing traditional insurance agents, preferring to conduct their own research online. However, this doesn’t spell the end for insurance agents. Gadie sees a significant opportunity for agents to bridge the gap by integrating digital tools and technology into their practices.
“Buying insurance is a big decision, and at some point, you’re likely to want to talk to a human being,” Gadie said. “The challenge for carriers is to equip their agency force in a way that creates a seamless digital experience while also providing a human touch.”
Gen Z’s Unique Health Insurance Needs
When it comes to health insurance, Gen Z’s approach is notably different from that of previous generations. This generation is breaking down the stigma surrounding mental health, with 42% of Gen Zers seeking mental health resources as part of their workplace health plans. Moreover, they show a strong interest in holistic health, often turning to online influencers for health advice—a trend that insurers should not ignore.
Stephanie Chan, Senior Research Analyst with Corporate Insights, explained that Gen Zers are more likely than other age groups to seek health information from platforms like TikTok, YouTube, and Instagram, where short-form videos dominate. “When Gen Z goes online for health information, they are most likely to visit these platforms,” Chan said. “What they have in common is their use of short-form videos, which are particularly appealing to this generation.”
(adsbygoogle = window.adsbygoogle || []).push({});Chan’s research also revealed that 56% of Gen Zers search for healthcare information online at least once a week, with many turning to social media before consulting traditional resources like Google. This behavior underscores the importance for insurers to maintain a strong and informative presence on social media platforms.
Mental Health Awareness and Self-Diagnosis
Gen Z is leading the charge in destigmatizing mental health, with many members of this generation openly discussing their mental health challenges. According to Chan, 40% of Gen Zers in her company’s survey reported that they had self-diagnosed a mental health condition after conducting online research. The most commonly self-diagnosed conditions are anxiety, depression, and ADHD.
After conducting online research, Gen Zers are likely to verify the information by consulting a doctor or discussing it with friends or family. This combination of digital research and personal consultation presents an opportunity for insurers to provide accurate, accessible information and support services tailored to Gen Z’s needs.
Videos: The Preferred Medium for Health Information
Videos, particularly short-form content, are the preferred medium for Gen Z when it comes to health information. This preference is not limited to healthcare but extends to other areas, including insurance. Whether it’s learning about different types of insurance policies or understanding the claims process, Gen Z is more likely to engage with video content.
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For insurance companies, this means that traditional methods of communication may no longer be effective. Instead, creating engaging, informative videos that can be easily shared on social media platforms is crucial to reaching this generation.Conclusion: A New Era for Insurance
As Generation Z continues to enter the workforce and make significant financial decisions, the insurance industry must evolve to meet their expectations. Insurers who successfully harness the power of social media, offer personalized experiences, and align with Gen Z’s values will be well-positioned to capture this important market segment.
In a world where digital engagement is paramount, the insurance industry has a unique opportunity to redefine its approach and connect with Gen Z on their terms. The future of insurance depends on it.
