Insurers focusing on youthful generations face longstanding trade problems with a lack of knowledge and an absence of client belief, a GlobalData ballot has discovered. Whereas faster fixes corresponding to social media methods and extra versatile merchandise might assist considerably, they’d solely enchantment to a small proportion so the extra long-term points must be addressed to achieve these generations.
A GlobalData ballot carried out on Life Insurance coverage Worldwide in Q1 2025 (with 174 respondents) discovered that over 50% of respondents believed both a lack of knowledge of insurance coverage or an absence of belief in insurance coverage suppliers have been the important thing challenges in promoting insurance coverage to Gen Z and millennials. Whereas these client segments are usually digitally savvy, addressing their issues would require greater than upgrading digital platforms and social media methods.
Certainly, an absence of client belief is a recurring concern for the trade. Rising premiums throughout some private traces is just not serving to the state of affairs; growing the worth and engagement insurers provide will likely be important in turning this round.
Speaking the worth of insurance policies may also be a problem—particularly as many younger individuals are launched to insurance coverage by means of the ‘grudge buy’ of obligatory automobile insurance coverage. Nevertheless, the trendy options of some insurance coverage merchandise can present added worth and have interaction prospects. Options corresponding to vitamin and health plans and smartwatch reductions inside medical health insurance, or sensible residence units serving to make houses safer, are methods that may enhance interplay and worth between insurers and prospects.
A scarcity of client understanding could also be simpler to repair, and restricted understanding of the worth of insurance coverage and complexity of product buildings are each seen as challenges. Insurers are sometimes recognized for having lengthy and sophisticated phrases and situations. But some suppliers—most notably US startup Lemonade—have prioritised simplicity of language and making coverage phrases as straightforward to grasp as attainable.
These ballot findings needs to be regarding to insurers, suggesting that enhancing youthful generations’ notion of the insurance coverage trade have to be a key precedence going ahead. Longer-term points corresponding to client understanding and belief can’t be fastened just by enhancing PR and social media methods. As an alternative, suppliers should intention to extend engagement with prospects, make insurance policies simpler to grasp, and add worth and incentives the place revenue margins enable.