The insurance industry in transition: How insurance services can now win over Gen Z

What’s missing? – The gap between importance and trust

Although, according to the Sirius Campus study, 87 % of 16–30-year-olds consider financial security to be important, the take-up rate for traditional products such as life insurance is falling, particularly amongst Gen Z. A lack of trust, incomprehensible contract terms and difficult access often put them off.

Digital dominance and expectations of convenience

• Mobile-first is a must. Gen Z operates exclusively online: virtually every online interaction, from purchasing to seeking advice, takes place via smartphone or tablet. Simply responsive designs aren’t enough – the mobile experience must be flawless.
• Digital expectations: Chatbots with superficial answers are not enough. Young users want quick, well-informed and understandable assistance – for example, via messaging channels such as web chat or WhatsApp with AI support.
• Digital services are changing expectations: embedded insurance – e.g. car insurance taken out directly at the point of purchase – is gaining popularity. Globally, up to 47 % of Gen Z are open to this. Convenience trumps the ability to compare options.

Claims made easy: self-service meets AI

Modern claims reporting is as simple as taking a snap: take a photo, upload it via a link or QR code – AI automatically analyses and assesses it. This boosts speed, clarity and user-friendliness.

Data sharing & personalisation

• Gen Z willingly shares data if, in return, they receive personalised, lower premiums or better services – according to the study, up to 90 per cent are willing to do so.
• Modular, flexible products instead of standard packages: variable terms, additional modules such as mental health cover, pet or accident insurance – all customisable to individual needs.
• Transparency and education as a service: clear, jargon-free language, explanatory videos and interactive tools lower the barriers to entry.

Selling sustainability? Yes, but realistically

Whilst Gen Z is proving to be environmentally conscious, sustainability is not always the decisive factor in purchasing decisions. Insurance companies should offer value-based policies – such as premium discounts for green electricity, e-mobility or local community involvement – but these tailored offers must be honest and transparent.

Young target group – major influencer

• Gen Z sets the new standard for digital services – insurers that fail to deliver now will lose future customer loyalty.
• They are under-served financially, even though interest in protection products is high. In advanced economies, Gen Z is often the least well-insured group – yet their demand is growing.

What do insurance companies need to do now?

The tools are already in place. What is missing is a bold cultural shift: away from paper-heavy processes and towards user-friendly, digital services. In particular, insurers that manage to operate in a mobile, transparent and value-driven way will secure the loyalty of a generation that is just coming of age – and is no longer willing to wait.

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