By Mayank Gupta
Today’s Generation Z (Gen Z) is poised to reshape the burgeoning economy of India, in return forcing companies to re-think, re-evaluate and re-align their strategies catering to the needs and demands of this cohort. They are more likely to use technology to solve problems while also seeing the world from a different perspective. With different expectations and views, they have become a critical focus segment for insurers. The insurance industry is adapting to meet the evolving needs of Gen Z and is now gradually pivoting towards being more focused, and personalised and adopting a transparent offering module.
With over 100 million Gen Z consumers in India, this demographic holds a significant sway over the country’s consumer landscape. As trailblazers of societal change, Gen Z’s dreams, ambitions, and values shape the very fabric of our society, challenging traditional norms and reshaping the future. One of the recent reports by Nielsen IQ sheds light on the needs and demands of this generation and the various patterns of their consumption. The report stated how Gen Z is embracing inclusivity, sustainability, and investment patterns respectively. Unlike the older generations, this generation is cautiously optimistic about the economy and their personal finances as per a Deloitte report. Almost 48% of Gen Zs and 40% of millennials expect their financial circumstances to improve. Despite this, financial insecurity is a significant concern, with 30% of Gen Zs and 32% of millennials feeling financially insecure and over half of both groups living paycheck-to-paycheck.
In short, the Gen Z mindset revolves around environmental concerns, stress & concerns about finances, and family welfare.
Keeping these realities in sight, here is a playbook for insurers on ways to cater to this segment.
Easy Terms & Conditions and Exploring Digital Avenues
People born to a generation with the internet at their fingertips can do research better than others in the room. As insurers build out platforms that optimise data for the user-purchase journey, it is critical to remember that trust is built on shared identity. This generation is increasingly apprehensive about disclosing personal information and data. Companies must first earn the trust of Generation Z by making data sharing useful to customers and providing them control over their data utilisation. Insurers must design experiences that make sharing personal information useful to customers and the larger community, while simultaneously giving users the choice to participate in the experiences without giving up their privacy.
Better Products, Less Hassle
Many InsurTech companies are working with insurance brokers, banks, e-commerce portals, travel platforms, and electronic brands to help embed insurance into their sales processes. This generation prefers quick solutions and hassle-free communications. They opt for products that are in line with fit-for-purpose and cover all manner of uncertainties and ‘what-ifs. The old–school, cookie-cutter approaches just do not cut it, hence brands now need to really slice and dice the group segment and accordingly figure out the right product for securing financial demands. Lack of insurance product awareness, convoluted documentation and assuming that insurance products are heavy to understand may often restrict the potential customers to not opt for a plan. It is now imperative to communicate the benefits of the products and rewards of the same for seamless customer proficiency.
Investments for Mindful Consumption
Gen Z is stepping into financial independence. They are at the forefront of embracing emerging technologies like GenAI and Machine Learning more than any other generation. Their inherent attraction to technology often helps them to gravitate towards innovative digital features that streamline their trades and investments while aligning with their financial objectives. The DIY (do-it-yourself) nature makes it challenging for insurers to ensure that the right kind of products are designed and customer services are delivered appropriately. Importance of having the right kind of term plan, motor insurance, wealth creation tools, mutual funds, and diversifying their investment portfolio with gold, together all of this provides a timeless store of value and acts as a hedge against inflation.
Display a Greater Social Purpose
Gen Z are looking to encourage positive change in the current environment. Roughly, 9 in 10 Gen Zs (86%) and millennials (89%) say having a sense of purpose in their work is very or somewhat important to their overall job satisfaction and well-being (Link). The life of a Gen Z goes beyond just paychecks.
Honesty and transparency are non-negotiable for Gen Z. They expect their employers to be genuine in their communications and actions, a similar approach that today each of the brands adheres to when it comes to selling their product which comes with transparency, conditions and actionable.
Overall, Gen Z is all about that balance—cherishing experiences while being mindful of personal finances and workplace norms.
(The author is Co-Founder and COO, Mayank Gupta (Zopper InsurTech), and the views expressed in this article are his own)
