Generation Z and Millennials key players in the changing insurance market

​Generation Z and Millennials are making their voices heard, demanding more insurance advice and education. Revealing this is a recent study conducted by Chubb that analyzed the preferences of five generations of affluent, high net worth consumers in the United States and Canada. The findings are contained in the report "Selling Across Generations" and reveal differences in how each generation buys insurance, what they look for in an insurance company, coverages, the types of brokers they trust, and how they currently interact with insurance agents. Specifically, the study covers Gen Z (1997-2012), Millennials (1981-96), Gen X (1965-80), Baby Boomers (1946-64), and Silent Generation (1928-45).​

Gen Z and Millennials want their agent or broker to tell them what decisions to make, they need advice while older people are more interested in understanding the information and thought process behind the recommendations they receive from an agent. Gen Z and Millennials trust and rely on and believe in the expertise and transparency of agents, whom they consider indispensable references. Nearly half (46%) of Gen Z respondents and 43% of Millennials welcome suggestions for the type of product to purchase, compared to only 21% of Gen X (1965-1980), 36% of Baby Boomers, and 29% of the silent generation. In addition, 47 percent of policyholders belonging to Generation Z and 40 percent of Millennials are willing to share their smart device data with insurers to obtain personalized products and services. In general, prior consultation with an agent to learn about the benefits and insurance solutions best suited to their needs is especially valued by Gen Z members (80%) and Millennials (83%).​

Younger generations are also the most receptive to the idea of their agent or broker educating them on how insurance products and services can meet their long-term goals. The study also found that younger generations are more likely to use social media reviews when choosing an agent or broker. In fact, most Gen Z (94 percent) and Millennial (89 percent) respondents rely on social media reviews before choosing an agent, compared to 64 percent of Gen X and 56 percent of Baby Boomers.

The top two sources of insurance information are agents and online research, while family, friends, and influencers are not considered primary sources of insurance information. With the sole exception of Generation Z, which is more likely to rely on suggestions from trusted acquaintances.

In this regard, the data analyzed suggests that insurance will have to evolve more and more toward the digital world in the future. Research by Webranking, which monitors digital marketing, claims that 47 percent of policyholders in Italy purchase policies via the Web. This percentage is set to rise as the Millennials generation will account for 45 percent of the insurance market by 2030. Confirmation also comes from investments in insurtech startups, which have increased almost 100 percent in one year, from 5.1 million euros to 10 million.

Regarding coverage, younger generations tend to have fewer insurance guarantees than previous generations; however, the overall number is encouraging, in fact more than one-third of all respondents say they have taken out an insurance product, such as coverage for liability or articles of value. ​