How the insurance industry is reaching Gen Z through marketing

Authored by Shefali Khalsa, Head – Brand & Marketing, Corporate Communications and CSR, SBI General Insurance.

The emergence of digitalization had a significant impact on the economy and our social environment in addition to impacting the way businesses run. This profound transition has also changed how brands communicate, particularly when it comes to marketing products to Gen Z. The GenZ likes to gather information from different sources and then make an informed decision. Moreover, today, Gen Z is one of the most influential age groups in India and is also expected to account for ~27% of the workforce worldwide by 2025 becoming an attractive pool of target consumers for insurers as per a report in Zurich.com.

Apart from this, another the peculiarity of Gen Z is that they prudently rely on digital platforms and processes while mapping out their financial future. Due to changing behavioral patterns, social dynamics, and economic volatility brought by events like Covid 19, they have a different perspective while making financial and risk-based decisions than their predecessors. Given this situation, insurance products are a crucial tool for the younger generation to cover financial losses resulting from unfortunate events, particularly those involving health and property. Additionally, insurance serves as a crucial financial tool for them by offering benefits like lower premiums and tax benefits when purchased early.

To market insurance the right way, insures are harnessing following trends:

Adopt mobile-first approach 

Gen Z is the first generation to have complete access to smartphones from an early age, and as a result, use their smartphones to conduct research, make purchases, and complete payments, making the mobile first strategy essential for marketers. Insurers should therefore engage with mobile channels along with other mediums to communicate their brand message. To catch their attention, insurers must also guarantee a seamless mobile app and responsive website experience.

Social media for financial literacy

A significant portion of Gen Z use social media as their main tool for information gathering and self- education on topics including financial literacy. They tend to opt for brands that they trust and can gather credible information about. Insurers have begun using channels such as Twitter, Instagram and Youtube to create more mindshare amongst GenZ. Insurers can also use content suitable to these platforms like social media posts, bite-sized videos, and tailored ads to their advantage to attract their attention.

Adding personalized touch points

Insurance companies are putting a lot of effort into developing products that are specifically tailored to the needs of Gen Z customers to forge lasting relationships with them. The term "personalized insurance enginet refers to a mechanism that several insurance companies are working to develop. It consists of an entirely automated customer journey that supports each individual policyholder from initial product
research, sales, and claims through a hassle-free, data-backed experience that feels completely tailored to them.

Exploring new distribution model

Members of Gen Z are all about moving things fast. As a result, insurers must explore channels that meet their need for speed. To offer quick, easy, and individualized solutions, insurers are investing in cutting-edge technologies and redesigning UI/UX. Insurance companies are making both traditional and non-traditional channels more effective to reach their young clients through the channels they prefer. To bring in new customers through technology and newer channels, insurance companies are also looking into new alliances and acquisitions. Companies in the fintech and healthcare sectors are using APIs to sell insurance through POS systems. To broaden their customer base and tap untapped markets, insurers are connecting their services with those of other businesses.

GenZ is certainly an important segment to focus as the future of insurance owners, and hence relevant segment for BFSI marketing. It is the correct time for us to gather insights to successfully sell insurance in the coming years. There will be new modes of marketing which will evolve with time, and it is important for marketers to align marketing strategies to meet their expectations.