Insurance for the TikTok generation
Gen Z isn't just any generation. They bring unique qualities, values and expectations that demand your attention.
While millennials have been the subject of much discussion and analysis in recent years, their successors, Generation Z, are making their mark on the world. They are the largest generation in history and comprise 25% of the U.S. population. They’re more technologically savvy and socially conscious than previous generations, and they’re poised to significantly impact the economy and workforce.
They also need insurance.
Insurance, however, is another cost for which Gen Z may not be prepared. They’re paying nearly 100% more for their homes and have 86% less purchasing power compared to the economic environment that boomers encountered in their twenties.
It follows that 70% of Gen Z believe that home ownership is out of reach. This means there will likely be a surge in rent-associated insurance needs. Adopting technology, like digital security deposit insurance, is crucial for property managers to appeal to today’s young-adult renters.
An industry at a crossroads
Insurance has been slower to embrace digital change than other sectors. But now is the time for this industry to tap into the Gen Z consumer base that’s exploring insurance options for the first time. This tech-savvy generation came of age in an era of smartphones, instant communication and on-demand services. They expect insurance to be as accessible and user-friendly as any other app they use on a daily basis.
The insurance industry must transform its approach to align with Gen Z’s digital expectations. This strategic shift isn’t just a passing trend to adapt to a new demographic. Adapting is necessary to stay relevant in a world where innovation and consumer-centricity drive success.
What’s so unique about Gen Z?
Gen Z isn’t just any generation. They bring unique qualities, values and expectations that demand your attention. Here are some hallmarks of this generation:
- Transparency is key. This generation possesses a healthy skepticism of traditional institutions. They expect clear pricing and policy details, not fine-print surprises.
- Affordability matters. Battling student debt and rising housing costs, Gen Z seeks value in insurance, favoring comprehensive coverage at reasonable prices.
- They are digital natives. With 95% owning mobile devices, Gen Z is keen to buy insurance online and use mobile apps. Insurers should focus on developing user-friendly online platforms.
- Value personalization: The generation prioritizes insurance solutions tailored to their needs, preferring flexibility and personalized plans over standardized options.
While Gen Z is young, they face numerous financial challenges and are open to adopting more proactive approaches given the right opportunities. For instance, over one-third of Gen Z lacks homeowners’ or renters’ insurance. And around 85% of them worry they can’t afford one month’s expenses if they lose their job. This scenario is a golden opportunity for insurance providers to meet Gen Z where they’re at and set them up for a brighter, more secure future.
Table stakes for attracting Gen Z
To attract Gen Z, insurance companies need to play by certain rules, which include:
- Engaging customer service: Meet Gen Z where they’re at by opening multiple communication channels to address their insurance inquiries.
- Digitizing manual processes: Gen Z distinctly prefers seamless and efficient experiences. Embracing digital solutions, especially in rental processes, streamlines operations, saves money and aligns with GenZ’s digital expectations.
- Digital channel savings: Gen Z appreciates discounts for opting into online platforms. This practice demonstrates alignment with their preferences and acknowledges their affinity for digital interactions.
These strategic guidelines are the key to capturing the attention of a generation that’s rewriting the rules of engagement.
Innovative products perfect for Gen Z
Gen Z is breaking the insurance mold. Insurance companies must design customizable products aligned with this generation’s individual and financial realities, offering options like:
- Green insurance — created for eco-conscious consumers; ranges from perks for driving less to environmentally friendly repair incentives.
- Digital renters’ insurance and security deposit insurance — indispensable for those who haven’t yet ventured into homeownership, especially as the economy remains challenging for cash-strapped home buyers.
- Pet insurance — Gen Z’s share of pet ownership is growing fast, nearly rivaling Gen X and baby boomers, despite much of Gen Z not yet having reached adulthood.
Gen Z’s distinct tech-driven lifestyle and values present a valuable opportunity for insurance. However, this generation is more discerning than previous generations and expects authenticity from their insurers. By understanding Gen Z’s needs and values, insurance companies can deliver insurance that addresses their current and future needs.
Andrew Delbridge is the Chief Revenue Officer at Rhino, the platform that helps renters everywhere achieve greater financial freedom to plan and enjoy their lives. He is a growth strategist with nearly 20 years of success spanning sales and revenue operations, GTM strategy, partnership management and cross-functional team leadership in the vertical SaaS and DTC spaces. Andrew is passionate about building, coaching, developing and scaling industry-leading sales organizations and teams.
Opinions expressed here are the author’s own.
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