Gen Z and Insurance: How Insurers Can Stay Relevant for a New Generation

Generation Z, born between 1997 and 2012, presents a unique challenge for insurers. This generation is growing up in an era of rapid technological advancements, climate awareness, and changing lifestyles. As the first generation that has been connected to technology from an early age, their expectations are shaped by this digital environment. Our recent research, based on a virtual audience (see explanation at the end of the article), explored the perceptions and needs of Gen Z in the Netherlands, offering valuable insights to help insurers adapt and innovate.

The Keys to Success: Sustainability, Technology, and Flexibility

Gen Z places high demands on companies, including insurers. They expect brands not only to provide products but also to contribute to social and environmental causes. Here are some key findings from our research:

1. Sustainability as the Foundation of Trust
   Insurers that integrate sustainability into their operations—for example, through green investments or incentives for environmentally conscious choices—gain the trust of Gen Z. Examples include discounts for electric vehicles or promoting reuse through second-hand insurance options.
2. Technology and Privacy: A Delicate Balance
   Gen Z values digital solutions, such as user-friendly apps and real-time updates. At the same time, they want greater control over how their data is used. Transparency about data collection and the ability to customise privacy settings are crucial.
3. Flexible and Modular Insurance Products
   Traditional long-term policies feel outdated to this generation. They prefer tailored plans that allow them to pay only for what they need. On-demand insurance, such as short-term travel policies or coverage for shared mobility solutions (e.g., car-sharing or e-scooters), aligns well with their lifestyle.
4. Simplicity and Speed Are Essential
   Gen Z expects immediate results and ease of use. Fast claims processing, clear interfaces, and transparent communication about costs and coverage are minimum requirements.
5. New Risks, New Opportunities
   With the rise of IoT (Internet of Things) and the shared economy, new needs are emerging, such as insurance against cyberattacks, identity theft, or damage to smart devices. Insurers offering innovative solutions to these modern risks can stand out in the market.

The Competition for Gen Z’s Attention

The competition for Gen Z’s attention is fierce. This is a generation that enjoys comparing options and critically evaluating choices. Insurers that cater to their needs can build a loyal customer base, while those that fail to adapt risk becoming irrelevant.

What’s Your Next Step?

The key to attracting Gen Z customers is innovation and authenticity. Would you like to learn more about how your organisation can meet the unique needs of this generation? Or would you like to connect with respondents from our research for further insights? Please contact Stefan Peters

Research:

This research was conducted using a virtual audience. A virtual audience leverages digitally created profiles that simulate real consumer behaviour and attitudes, enabling the quick and efficient collection of rich, diverse insights.

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