Insurers aiming to serve the needs of Gen Z consumers, who favor independence in their e-commerce transactions, may find it essential to offer additional resources and unbiased information. According to Jason Keck, the founder and CEO of Broker Buddha, Gen Z individuals typically do not engage with insurance brokers for needs like auto or rental coverage. To cater to this demographic, leveraging third-party data for quotes and facilitating policy binding through digital tools and comparisons becomes crucial. Additionally, embracing contemporary payment methods such as Venmo, PayPal, and Apple Pay can enhance the accessibility of the insurance shopping experience.
In an interview with Insurance Business, Keck emphasized the importance of both information and business transparency for Gen Z policyholders. Transparency should be a top priority for insurers targeting this growing consumer base. Keck pointed out that price comparison is a key aspect of transparency, as Gen Z customers want to understand how their coverage costs stack up against other available options. They prefer to make informed choices rather than settling for the first option presented to them. Gen Z also desires clarity regarding policy coverage and exclusions, without having to decipher lengthy fine print.
Keck provided an example of how Gen Z individuals may struggle to understand the benefits of travel insurance for an upcoming trip due to the abundance of information, both reliable and misleading, at their disposal. Gen Z is exceptionally comfortable with online interactions, a trait unique to this generation that is likely to shape the way companies interact with them.
Another crucial aspect of transparency for Gen Z consumers is understanding how a company operates on a broader socio-economic level. Keck noted the influence of social justice movements and Environmental, Social, and Governance (ESG) issues on this generation. Awareness of a company’s stance on these matters can influence purchasing decisions. Companies that actively support societal and environmental causes, without resorting to “greenwashing” tactics, can leverage their commitments as selling points. Gen Z consumers may be willing to pay a premium for policies from companies that align with their values, even if they are 10–20% more expensive.
Furthermore, emphasizing actionable ESG commitments can attract younger talent to the insurance industry, which is experiencing a shortage of professionals. Gen Z individuals are more inclined to work for companies that demonstrate a nuanced moral compass beyond profit-driven motives.