Gen Z consumers are buying insurance in a new way

0


Those in the insurance product market today tend to be younger and are not married to traditional notions of where to buy coverage – or even what coverage is. This vast opportunity appeals to a range of players, little more than banks and financial institutions (FIs).

This excerpt from the report on Life Insurance Engagement: Consumers, FIs and the Life Insurance Digital Path to Buy, a PYMNTS and Franklin madison collaboration, reflects responses to the survey of more than 2,300 consumers on purchasing life insurance, finding that “those who report not having life insurance, including baby boomers and the elderly (38 %), Generation Z (40%) and Generation X (36%), represent largely under-exploited audiences for insurers. The report finds that better communication is a solution to the problem.

Researchers have found that Generation Z is showing a keen interest in insurance products. The Life Insurance Engagement Report notes that this may be due to the fact that “the overwhelming majority of Gen Z consumers (73%) face student loan debt with an average repayment period of 20 years. About 8 percent of these loans are privately held and are not dischargeable upon the death of the borrower. This means that the borrower’s estate or their loved ones would have to pay off their loan balances – an important motivation for purchasing a life insurance policy.

The logic of youth demographic insurance is strong, as they consider debt while having children and buying houses and cars. As a result, they want to buy coverage on their terms.

Calling on Gen Z “the most motivated to learn about insurance options of all generations as they face adulthood and under the pressure of millions of dollars in private student loans that would be transferred to loved ones upon their death, ”the new Life Insurance Commitment Report found that“ Generation X and transitional millennials are the most motivated to care for their loved ones, while Generation Z considers insurance- life as part of a comprehensive financial security plan.

The Life Insurance Engagement Report notes five key steps for effective insurance marketing to young buyers, including making greater use of concise product information; provide consumers with frictionless digital payment options; work to dispel insurance myths with a strong FAQ section; include live help options on the home pages for consumers with product questions; and make product pages for consumers simple and focused on the buying process.

——————————

NEW PYMNTS DATA: FOCUS ON AI: THE BANK’S TECHNOLOGICAL ROADMAP

About the study: The AI ​​In Focus: The Bank Technology Roadmap is a research and interview report examining how banks are using artificial intelligence and other advanced IT systems to improve credit risk management and other aspects of their operations. The Playbook is based on a survey of 100 banking executives and is part of a larger series assessing the potential of AI in finance, healthcare and others.





Leave A Reply

Your email address will not be published.