Less than half of people aged 18 to 42 have a ‘good’ understanding of life and health insurance products, and 11% admitted to having ‘no knowledge’ at all, according to ReMark’s 10th Global Consumer Study.
The report interviewed 12,563 Gen Zs and Millennials across 22 markets, and found that more than half of young people would prefer to gain knowledge about insurance through online courses, video content, forums and social media.
Online was not just the most important channel for insurance education, but was also the most popular way to gain advice, while positive online reviews were the determining factor for young people when choosing a provider.
35% of Gen Z and Millennials said good online reviews was the most important factor in their decision to buy, ahead of price (31%) an established brand name (12%)
24% were triggered into buying their most recent life or health product by a personal recommendation, while 29% of respondents went online for advice ahead of buying.
A further 72% of Gen Zs and Millennials were prepared to share wearable data to get life or health cover, and 82% said that they would share their previous claim history.
Naomi Greatorex, director at Heath Protection Solutions Ltd said that the findings of the study were reflected in her own experiences in speaking with younger people, especially renters who were less likely to think about protection products.
She said: “In my experience most people have very little understanding of life cover and health products until they have mortgage advice.
“This means that a large percentage of younger people have no protection advice, and therefore no understanding of the importance of protecting themselves.
“This is reflected in the amount of people I talk to under the age of 40 that have no idea what life cover and other health benefits offer, particularly if they are renting.”
Gavin Maguire, head of UK and Ireland, life and health at SCOR, added: “The 10th Global Consumer Study focusses on people aged 18 to 42 to offer insurers unique insight into this hugely important consumer group, and what it has found is that younger people are lacking knowledge, but they want to learn more, and online education is the way they want to do that.
“The report also reveals that online access to the insurance products themselves is hugely important to young people – good online reviews are the most important factor when it comes to purchase, while social media is playing an increasingly important role, with one in ten (10%) saying it was social media that triggered their most recent life or health insurance purchase.
“However, there is a fine line – the report also suggests that spending too much time on social media may be a contributing factor towards major stress for young people.”
He continued: “The key takeaway here is that insurers need to recognise the importance of a strong digital presence – enhancing online reputation is going to be key for life and health insurers and brokers looking to tap into a younger market.”
