All industries must adapt to the expectations of Millennials and Gen Z, who prioritize transparency, personalized experiences, and control over their data. To meet the evolving expectations and build trust with these younger generations, companies must offer insurance services that are open, user-friendly, and tech-savvy.
According to a study by The Financial Brand, Millennials and Gen Z prioritize trust and security when selecting a financial service provider. These younger generations are 10% less likely than Baby Boomers (born in the 1940s–1960s) to trust financial institutions, with Gen Z being the least trusting.
Therefore, companies will need to work harder to earn the trust of these segments, which hold transparency as a top priority for the insurance and finance industries today—especially in terms of personal security. The younger generation wants transparent providers that speak their language and can support their individual financial journeys.
How to build trust in the digital age.
Given the current economic situation, Plaid's 2022 Consumer Survey, The Fintech Effect, found that younger generations are more likely to rely on digital finance as a means of navigating economic stress. More specifically, 73% of Gen Z and 71% of Millennials reported an increased dependence on digital finance due to economic challenges.
The insurance industry has seen a shift in consumer expectations in recent years, as Millennials and Generation Z are entering the market. These digital natives have grown up with technology at their fingertips and are demanding greater transparency, control, and accessibility when it comes to their insurance and financial products.
As a result, insurance companies and other financial providers have to adapt to the changing landscape and find new ways to meet the needs of this emerging demographic.
Why companies must offer greater control over data.
One of the biggest demands from Millennials and Gen Zers is the right to be active participants in decisions regarding their data; 81% of Millennials want to decide where their financial data goes rather than having companies make those decisions for them.
This shift in consumer expectations is an opportunity for insurance companies to create more transparent products. By giving customers the ability to control their own data, insurers and banks are able to create the more personalized experiences that meet their individual needs.
At Insurely, we believe that customers should have a right to their own data, and we aim to empower them by offering products enabling greater control over their personal information. Sharing data must benefit consumers, make the industry transparent, and prioritize consumer needs. As a result, opening up certain data categories can offer consumers more value, like simpler switching, easy onboarding, and transparent coverage.
Prepare yourself.
We believe that the future of insurance is digital. Millennials and Gen Z are digital natives, and they expect their insurance providers to provide them with what they need. They want to be able to access their insurance policies, track their claims, and manage their data online, and we are committed to delivering these services in a user-friendly, intuitive way. Curious how? Contact us today, and we’ll gladly discuss it further.
