Insurance Buying Behaviours Of Gen Z Revealed

While Millennials and Gen Zs may appear to rely on their phone for everything they do, a new report reveals that when it comes to buying insurance, in-person meetings with an adviser is welcomed.

A report published by Finaeo, titled Understanding Millennial and Gen Z Insurance Buying Behaviours, concludes that face-to-face is still their preferred way of buying insurance, with online transactions coming a close second. Despite being digital natives, bricks-and-mortar locations are still greatly preferred.

“It’s about 50/50 between in-person preferences and digital methods of closing a sale,” states the Canadian company’s report, which suggests financial advisers ensure they accommodate both ways of selling to optimise client reach.

“Millennials and Gen Zers are buying into how insurance can better their life,” says the report’s authors. “They purchase less about pricing and more about the benefits and peace of mind. They value the impact and idea of the product, not the price point.”

However, this group also expect a high level of ongoing customer service, with the report saying they expect 24/7 access to help and multiple ways to communicate with insurers (phone, text, or social media) “…and appreciate touch points around personal life events”.

“Self-service offerings like FAQ pages can enhance the customer experience for Gen Zers, while methods like chat boxes would satisfy Millennials,” says the report.

“They expect a decent mobile experience and for their preferences to be known. Setting up automation for post-purchase experiences like emails and texts for important events would keep the relationship building and enhance social credibility.”

And an adviser has a relationship with the parents of Millennials and Gen Zs, then it may ease the path to do business with them.

“They are most likely to use the same insurance provider and services as their family,” states the report. “Word of mouth and online resources are top decision influencers for big purchases.

“Recommendations from peers and family ranked 50% more important than online research. Testimonies matter, and so do quality referrals.”

The report recommends advisers ensure social credibility online and facilitate excellent experiences, so current clients can refer their network directly to you.

Download the full report here.

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