Gen Z: Next Best Prospect for Health Insurance
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As Gen Z ages, more and more are entering the insurance market. Whether becoming ineligible for parental health insurance at 26 or getting coverage through their first employer, it’s becoming increasingly important to understand how to engage and retain this demographic as insurance customers.
For the past 10 years, ReMark, a global insurance consultancy specializing in consumer insights, marketing campaigns, and digital insurance solutions, has conducted a Global Consumer Study (GCS) to understand the attitudes, rationale, and habits of the insurance market.
The 2023-2024 ReMark GCS surveyed over 12,000 consumers, across 22 global markets, including 1,004 U.S. respondents. This study focused exclusively on Gen Z (ages 18-26) and Millennial (ages 27-42) consumers because of their growing need for insurance coverage.
Although Millennials experiencing major life milestones may be prime prospects for health insurance professionals, preparing for Gen Z to enter the market is a necessity for the success of your business. This includes understanding their awareness of insurance and motivating purchase drivers.
Insurance Literacy & Education
This year’s most informative insight centered on insurance literacy. Respondents completed a self-assessment and were scored on their basic insurance knowledge, including underwriting, risks, and coverage.
While 49.1% of Gen Z Americans self-reported very good/good life and health insurance knowledge, their assessed literacy score was only 5.87/10. This discrepancy between perceived and actual insurance knowledge shows that Gen Z is more confident than their knowledge may justify.
Despite their confidence, Gen Z is open to learning: 75.2% desire additional insurance education. When asked about their ideal learning methods, education from a trusted friend ranked number one (26.3%), followed by online courses (23.9%), and a 1-on-1 call with an insurance agent (16.8%).
Gen Z’s interest in education, especially via 1-on-1 agent calls, uncovered a new engagement opportunity for agents — the opportunity to assist in the pursuit of knowledge.
It would be a mistake not to address the role of friends and family in insurance education. Many of the children/grandchildren of your customers rely on their elders for their insurance knowledge and these older people also need to learn from someone. Agents can benefit from a compounding effect by investing more heavily in educating across generations.
The role of agents in education can also extend beyond 1-on-1 interactions. Distributing self-service resources, most importantly offering online courses, can be impactful. It demonstrates your commitment to serving younger prospects’ educational needs and playing a vital role in their entrance into the market.
Pre-Purchase Advice & Buying Triggers
U.S. Gen Z’s propensity to value friends and family over other sources of information continues when you analyze their purchase journey. GCS data shows that 37.1% of those who recently purchased insurance relied on friends and family for pre-purchase advice. Although most are first-time insurance buyers, nearly a quarter (23.2%) turned to an insurance agent or financial advisor. This outranked online research (19.7%), demonstrating the continuing importance of agents early in the Life and Health Insurance sales cycle.
There are several influential buying factors as Gen Z moves from consideration to purchase. Interestingly, price (34%) and good online reviews (33%) were rated nearly equally as most important. Historically, price has been the leading factor, but customer experience has become increasingly more valuable in recent years. This is amplified by the fact that U.S. Gen Z are digital creatures. They often rely on online sources to evaluate businesses before buying. If agents are looking to increase inbound leads, collecting positive reviews is an essential practice.
Health insurance professionals may not be encountering Gen Z prospects yet, but they will soon. Understanding what this generation values will only help you to engage and retain Gen Z clients as their buying power increases.
Originally published by California Broker Magazine
Katie Shivers
Katie Shivers is a digital marketer located in Charlotte, NC. She is a multi-faceted writer, experienced project manager, and social media enthusiast. Katie loves craft beer, live music, and supporting local artists.
