“When millennials started entering their late twenties, many of the trends that are the norm for Gen Z were just emerging,” says Emily Smith Cardineau, director of content and insights at Cake & Arrow, an insurance user experience research and design firm.
Trends that started with millennials and are now firmly entrenched as Gen Z comes of age, including “an increase in gig work, postponing home buying and starting families later in life,” Cardineau says. And just like millennials, Gen Z value “flexibility, autonomy and experiences as much as material comforts,” she adds.
While homeownership is still far into the future for most Gen Zers, commercial insurance may actually be more in reach. “With many Gen Zers pursuing content creation, influencing and other types of entrepreneurship professionally, continuing to find ways to package coverage for personal and professional risks—and marketing these products in innovative ways—will be crucial,” Cardineau says.
“Flexible, affordable and on-demand insurance options that can accommodate more variable work are going to continue to be important as the gig economy grows,” she adds.
While digital access to insurance is an expectation among younger insurance consumers, “one thing we learned the hard way with millennials is that ‘digital-first’ doesn’t mean ‘digital only,’” Cardineau says.
“As the kinds of insurance products Gen Z purchases become more sophisticated, they are going to want more support,” she continues. “This may come from a human via a phone call, or it might happen through chat, but when it comes to complex products in insurance, we should never rule out the role of actual people in educating consumers.”
So, what do Gen Z consumers want in terms of communication from agents? “Many people, Gen Z included, feel oversaturated with communication right now,” Cardineau says. “Picking and choosing wisely what is being communicated when and how is critical.”
For example, Cake & Arrow found that while text messages are great for status updates or claims, consumers find them annoying when it comes to more general communication or marketing. “We all exist in a very complex media ecosystem,” Cardineau says. “The best advice is to talk to your customers. It’s likely their communication preferences will be different depending on the context and the individual.”
As Gen Zers grow into insurance, independent agents can take the initiative to solidify their reputations as experts with this new generation—as long as agents are willing to meet Gen Z where they are. “Using social media, TikTok particularly, to build a following, establish credibility and offer expert advice around insurance fits right into what we are seeing other professions do, like therapists or financial advisers,” Cardineau adds. “There is an opportunity for agents to use social media to build niches around demographic groups and specific interests.”
AnneMarie McPherson Spears is IA news editor.
