Gen Z’s will drive insurance growth and trends, according to a global InsurTech trends report! Worldwide, innovative offerings from InsurTechs have grabbed the interest and curiosity of the Gen Z’s. Igloo, an Indonesian InsurTech, has outlined five emerging trends that will be driven by Gen Z in the insurance segment. Meanwhile, as per IRDAI’s data in September 2023, health insurance has been pegged as the largest non-life segment, which is thereafter followed by motor and crop insurance.
Placing emphasis on solutions that are highly personalised and micro-protected, Igloo’s five emerging trends include embedded insurance, pet insurance, and gaming insurance, among others. These trends also place emphasis on solutions that offer gamer’s protection, and microinsurance offerings that would shield consumers from data breaches, online fraud while shopping and most notably, device protection.
Gen Z’s Rising Demand for Embedded and Micro Insurance Solutions
Given the rising preference for embedded solutions and device protection among millennials and Gen Z’s in India, these findings are aligned with how consumers prefer contextual and bite-sized solutions that are easy, convenient and instant.
The key advantage that InsurTechs provide is in enabling consumers and insurers with solutions that help keep pace with evolving needs and consumer sentiments. For instance, when a consumer books air tickets online, they are urged to consider travel insurance as a logical integration with the rest of their journey.
Amidst rising costs for healthcare services in India, Gen Z’s are well-aware of the importance of health insurance and comprehensive coverage for their loved ones. Nearly every day one reads headlines that highlight young Indians suffering from heart ailments and life threatening illnesses, and the frequency of these headlines is only increasing due to several lifestyle issues.
Contextual Insurance: Personalisation is key for Gen Z
Specifically for Gen Z’s, they expect more from insurance coverage besides basics such as convenience, personalisation and additional value in the form of supplementary benefits that include cashless hospitalisation, critical illness insurance, among others.
Summing up, one can only reiterate that financial planning has to begin early in life, as inflationary pressures tend to rise and volatility in prices can hit hard. Be it health insurance, term insurance, motor insurance or embedded insurance, Gen Z’s should be mindful to start early and continue buying coverage ahead of any unforeseeable events in view of the coming 15-20 crucial years that are likely to witness considerable turbulence financially.
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