Millennials and Gen Z looking online for insurance

According to a Swiss Re survey of the attitudes and behaviours of Australian Millennials and Generation Z towards life insurance, more than half of Australians aged 18 to 41 (53 per cent) would prefer to purchase life insurance online by themselves.

In contrast, just 6 per cent said they would purchase life insurance through an adviser, however, a further 17 per cent are seeking a mix of independent research and professional advice, while 19 per cent favoured purchasing through superannuation.

The survey, which involved a combination of qualitative interviews with 10 participants and a quantitative survey of 1,000 individuals, also found that the top priorities for choosing an insurer were competitive pricing, clear policy details, and brand reputation.

“There’s a notable demand for responsive customer service and 24/7 self-service capabilities, with nine out of 10 people interested in health and wellness programs that offer incentives for maintaining a healthy lifestyle,” Swiss Re said.

According to the survey, 25 per cent of the sample already have life insurance and another 45 per cent intend to get insured.

Swiss Re added that 69 per cent possess life insurance through their superannuation, often by default, which it said highlighted a “potential area for personalised policy enhancement”.

“Interestingly, immigrants were found to be 10 per cent more likely to have life insurance than the respondents born in Australia, typically through private policies,” Swiss Re said.

The vast majority of those that are insured said they believe their cover is adequate (78 per cent), though 37 per cent said that their coverage may need to increase in the future.

“However, a concerning 10 per cent are unsure about the adequacy of their coverage,” Swiss Re said.

The reluctance to purchase insurance is primarily attributed to perceived youth (37 per cent) and affordability concerns (34 per cent). For those cancelling their insurance, high costs (42 per cent), increased living expenses (21 per cent), and a lack of perceived need (18 per cent) were the main reasons.

Swiss Re added that the study “underscores the imperative for the industry to evolve with these changing demands”.

“The adaptation to digital-first and customisable insurance products resonates well with Millennials and Gen Z in Australia, who value tailored and flexible solutions that align with their lifestyle and needs,” it said.

“This approach opens growth opportunities, not only by catering to the unique preferences of these younger demographics but also by addressing the needs of immigrants and forming strategic partnerships with superannuation funds.

“Recognising the importance of effective communication and offering entry-level products is crucial in this context, as it ensures that insurance is accessible and comprehensible to all segments of the population.

“Furthermore, the shift towards consumer-centric models underscores the necessity of digital innovation in offering more personalised and engaging customer experiences. By utilising new data sources, insurers can improve accessibility and innovate product offerings that meet the nuanced needs of today’s consumers.”