Between growing up amid the Great Recession and experiencing the COVID-19 pandemic in late childhood or early adulthood, Generation Z’s confidence in life planning and financial security has been shaken. Indeed, workers under age 25 were 93% more likely than workers over 35 to be laid off during the pandemic, contributing to lost insurance coverage.
As a result of these experiences and their ability to easily find information online, Generation Z is highly price-sensitive. 60% of Zoomers said price was the biggest factor when choosing which brand to buy from. Young people today are savvy consumers — comparing prices, identifying discounts and reading reviews.
“They don’t want to pay full price for anything,” says Jason Dorsey, a Gen Z consultant and researcher.
The implications for insurance are clear: Insurers that offer both lower prices and price transparency will attract post-millennials.
“Offer lower prices” is easier said than done and has been a priority long before Generation Z. Instead, where insurers can really shine is in offering the right product at the right time to the right user.
For example, Generation Z is the most likely to celebrate their pets’ birthdays (81% do, according to a recent survey!) and treat them like a member of the family. How likely might they be to purchase pet insurance from an insurer that offers discounts and rewards on their furry friend’s birthday?
With the recent turmoil in the job market, many Zoomers are turning to gig work full-time. The growth of the gig economy means health, dental and life coverage traditionally offered through employer plans must be provided differently. Gig workers often seek untraditional terms for the insurance products they purchase, in some cases day-to-day or gig-to-gig.
While Gen Z is highly price-sensitive, this is balanced by their increased comfort with sharing personal data in exchange for discounts and personalized policies. This opens up a massive window of opportunity for insurers to deliver personalized experiences to this demographic.
Insurers that can provide on-demand, flexible coverage of key products, with simple self-service options and real-time quoting will find great success serving this underserved market.