In recent years, generation Z, also known as centennials, is transforming the insurance industry by entering the SMEs digital market, and taking on new businesses with different characteristics and needs than the sector is used to. This generation, which represents more than a third of the world’s population, has the technology at its fingertips to determine the future of the industry.
In this article, you’ll find out the necessities of this generation, and what changes insurance professionals should make to adapt to them.
1. Generation Z and the new digital businesses
According to the study carried out by EY Ripples and JA Worldwide, almost half of the centennials are planning to start a business in the next few years, mainly SMEs with a strong digital presence.
The needs of these new businesses are very different from more traditional SMEs. Generation Z is made up of digital natives, who prefer to come up with new ideas to transform their environment and create digital businesses that suit their individuality. This is a generation that wants to do things differently and has clear and defined business values.
This is why insurance companies need to adapt to this new generation to ensure their place in the insurance industry in the coming years.
2. New expectations for the industry
The insurance industry is currently in the process of digitalization to offer services adapted to the new demands of consumers. These changes are undoubtedly driven by younger generations, such as generation Z.
Customers of this generation are looking for insurance policies that offer a fully digital experience, involving unbureaucratic and transparent processes, allowing them to save time and money. This represents a great opportunity for insurers to meet the expectations of their younger customers by designing customized insurance products to differentiate themselves from the competition.
To seize this opportunity, the insurance industry is relying on the support of InsurTech, with 88% of insurers believing that partnerships with these companies offer key opportunities to modernize the industry.
3. Neo-insurance is the key
If the future of the sector belongs to InsurTech, Neo-insurance is the solution to satisfy the new demands of centennials. With digital insurance, the customer experience is faster, more intuitive, and multi-platform, as well as offers more personalized products.
Online insurance management also provides greater transparency and accessibility for insurance policies, making it easier for customers to resolve issues quickly and efficiently. With digitization, insurers will be able to respond efficiently to the needs of generation Z businesses, improving the management of their resources and reducing their costs.
In conclusion, centennials are revolutionizing insurance sector through innovative ideas for their businesses, offering a major opportunity to those insurance companies that want to be ahead of the digital game that the industry is developing towards. Taking advantage of new technologies and opting for the flexibility of insurance will allow companies to position themselves and stand out from the competition.
Solutions like Wenalyze are here to help you get to know your digital SME customers better. Contact us to find out more about the needs of the new generation of businesses.