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Generation Z, also known as Gen Z, iGen, post-millennials, and the New Greatest Generation, is a consequential generation that may play a significant role in addressing the global challenges of global warming, inequality, and political and social unrest. This generation is known to be the “most” generation in history, with characteristics such as being the most racially and ethnically diverse, most educated, most digitally savvy, and most non-conformist, with a rejection of traditional financial pursuits and embrace of non-binary ideas.
With a population of 25 percent of the world’s population and $7 trillion or more in purchasing influence, and comprising 27 percent of the workforce by 2025, businesses need to take note of the unique characteristics and behaviors of Gen Zers in order to tap into their zeitgeist and remain relevant. Oliver Wyman’s recently published report “What Business Needs to Know About The Generation Changing Everything,” as part of the A-Gen-Z series, aims to shed light on the behaviors, preferences, and impact of Gen Zers on various aspects of society, including the workplace, economy, healthcare, and brand marketing.
For property casualty insurers, the rise of the Gen Z demographic is expected to have significant implications in the coming years. This cohort is poised to become the largest consumer demographic in history, with a projected size of nearly a third of the global workforce by 2030. In light of these developments, it is important for insurance companies to take note of the unique preferences and priorities of Gen Z consumers and employees.
Authenticity, Transparency and Inclusiveness
One of the key factors that will impact the property casualty insurance industry is the changing consumer preferences of Gen Z. This demographic values authenticity, transparency and inclusiveness in the brands they do business with. To win their trust and loyalty, insurance companies will need to show that they are trustworthy, relatable, and transparent in their business practices and communications. In addition, they will need to offer a blend of physical and digital engagement options to meet the needs of Gen Z consumers, who are often referred to as the “phygital” generation.
When it comes to attracting and retaining Gen Z employees, insurance companies will need to take a different approach than that of previous generations. Gen Z is known for seeking out flexible and autonomous working environments that offer a good work-life balance, and they are not afraid to leave companies that do not meet these expectations. To win over this demographic, insurance companies will need to prioritize employee well-being, offer career development opportunities, and foster a work environment that supports personal fulfillment and entrepreneurial spirit.
In addition to these factors, insurance companies will need to be more agile and adaptable in their business practices. The pandemic has accelerated the pace of change in many industries, and insurance is no exception. Companies that were able to pivot quickly and effectively during the pandemic will be better positioned to respond to the unique needs of Gen Z in the future. By approaching decisions as experiments that can be learned from, insurance companies can stay ahead of the curve and win the loyalty of this important demographic.
In conclusion, the rise of Gen Z represents both a challenge and an opportunity for the property casualty insurance industry. By understanding the unique preferences and priorities of this cohort, insurance companies can position themselves for success in a rapidly changing marketplace. Whether they choose to be proactive and seize the moment—or fall behind and risk being leapfrogged by their competitors—will have a significant impact on their long-term success in the years to come.
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