Gen Z: What the insurance industry needs to know

Generation Z, the newest generation to enter the workforce, gets most of its information from social media and seeks to have a personalized experience when buying products and services. So insurers who want to reach this age group must up their social media game while delivering an experience that meets the needs of these young adults.

Those were among the takeaways during a recent panel discussion held as part of the Society of Insurance Research EDU Summer series.

Gen Z makes up about 18% of the U.S. population and has grown up using social media in their daily lives, said Kendall Gadie, associate director at Comperemedia.

Gen Z is also the most diverse generation, he said, with more than one-quarter identifying as a race other than white and a large portion identifying as part of the LGBTQ+ community.

“This is important for your product strategies and how you engage, the messaging you use in your marketing and the language you use to address those different realities,” he said. “You must create products and experiences that have a cultural relevance.”

Gadie said Gen Z members are likely to be tied to social issues and want to do business with brands that have the same values they do.

“The individual identity they have matters to them,” he said of Gen Z. “They want to know that you are engaging with them based on their likes, their personality, who they are, their cultural identity, and not a typical mass-market approach.”

Growing up in a digital world has given Gen Z an elevated expectation of being offered a personalized experience in all their transactions, Gadie said. “This puts more pressure on insurers, and really all brands, to be able to do that.”

Gen Z depends on social media

Most Gen Zers look to social media to research products and services before they buy, Gadie said, so it’s important for insurers to have a presence on multiple platforms.

Gadie said his company’s research shows that younger adults tend to rely less on an agent in the insurance-buying process, but he added he believes there is an opportunity for agents.

“We’re seeing digital and technology advances on the agency side that can bridge that gap,” he said. “Buying insurance is a big decision and you’re likely to want to talk to a human being at some point along the way.”

The challenge for carriers, he said, is to equip their agency force in a way that creates a seamless digital experience while also providing a human touch.

Research found Gen Zers have their own views about health, and health insurers should take notice, Gadie said.

One view is that the taboo surrounding talking about mental health is going away with Gen Z. Research found 42% of Gen Zers look for mental health resources as part of their workplace health plan.

In addition, Gen Zers are interested in holistic health and are more likely than other age groups to seek health information from online influencers who may not be health professionals, he said.

Videos are popular

When Gen Z goes online for health information, they are most likely to visit TikTok, YouTube and Instagram, said Stephanie Chan, senior research analyst with Corporate Insights. What these platforms have in common is their use of short-form videos.

Chan said her company’s research found 56% of Gen Zers intentionally search for health care information online at least once a week. Gen Zers also go to Google for health information but social media is where they go first.

She said the two main types of health-related content on social media are doctor influencers who post videos of tips on how to manage various health conditions and patient testimonies in which patients describe their conditions and treatments.

After they view the information online, Gen Zers are likely to fact-check it and do outside research if they are looking for information on a more serious condition, Chan said. Their favorite ways of doing outside research include going to Google, asking to a doctor or talking to a friend or family member.

Chan echoed Gandie’s comments about Gen Z and mental health, stating that 40% of her company’s survey respondents said they diagnosed themselves with a mental health condition after researching online. The top three mental health conditions that were self-diagnosed are anxiety, depression, and ADHD.

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Susan Rupe is editor in chief, magazine, for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at [email protected].