Will Generation Z change the paradigm of ….? As Gen Z comes of age, pundits and experts alike have been asking the same question for their own industry. So, let’s ask it for the insurance market:
Will Generation Z change the paradigm of the insurance industry?
The evidence seems to suggest that they will only engage in experiences that are simple, digital and real-time, and offer the personalized touch. It’s difficult to envision them not insisting on buying items when they want and how they want, like the overwhelming majority of their peer group.
Don’t be surprised to see new insurance “hubs” for Generation Z that are meaningfully branded, allowing customers to buy how and when they want.
The car industry is starting to adapt to today’s youngsters. Leasing companies and manufacturers are happy to sell the same car 1,000 times, via car-sharing schemes, rather than selling 1,000 cars as rentals. Personal contract purchase (PCP), a type of hire purchase vehicle finance for individual purchasers, is quickly becoming the norm. Will we see the same for protection, where a policy is live for a period and then dormant until the need arises to make it live again, with risk assessment wholly digitally-enabled?
The technology exists and insurers have enough streams of data to mine to adjust to Generation Z. Tomorrow’s insurance leaders will leverage both to deliver a truly personalised, meaningful and valued customer experience and engagement strategy for each cohort, using customer insights. It goes without saying that adjusting for Generation Z does NOT mean leaving the other generations behind! Smart insurers will be able to offer the right experience for all customers, as opposed to forcing grandpa to navigate through a complex online experience.
This approach will necessitate channel diversification – insurers require products tailored to each cohort, but also the agility and insights to adapt to customers as they age and adapt (and as technology evolves). Three other approaches that will help insurers:
- View this new generation as an opportunity to better empower all of your customers, making them better informed and helping them achieve better outcomes.
- Offer simple and transparent products that can be modified, because customers’ needs change throughout their lives
- Utilize better customer data to inform and develop more flexible solutions that allow customers to flex across multiple covers throughout their lives
Insurers who use these strategies can zoom towards Generation Z and all their insureds.
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