Millennials and Gen Z: The game changer of the insurance industry

Everyone has learned from the pandemic the most fundamental and significant lesson of taking care of one's health and the necessity of being ready for any situation in advance. Being financially stable has evolved from being a necessity to an intentional choice in one's financial planning. A healthier lifestyle increasingly emphasises the value of health and life insurance. Every Indian now has a completely different way of thinking.

According to a survey by the credit payment firm Slice, "Millennials and Gen Z are giving their health and financial stability top priority. To protect themselves and their loved ones from unanticipated occurrences, 50% of the respondents said they are eager to buy health insurance.

The younger generation needs constant connectivity and access to information seven days a week since they are constantly on the go. This generation is accustomed to having everything at their fingertips. As they strive for long-term financial wellness at a young age, they are foresighted and pragmatic in their approach to finances.

The way Gen Z and millennials live their lives is not news, but the transformation they have brought about in "consumer behaviour" has revolutionised how firms operate. The old insurance model has been replaced by a hybrid one. To strengthen the total client servicing mechanism, digital solutions are being leveraged to improve and supplement their traditional selling procedure.

Because of their increased awareness of and receptivity to insurance, millennials and members of Generation Z have come to understand how crucial it is to protect themselves and their loved ones. The need for health insurance has likewise been steadily increasing. The younger generation is anticipating an insurance policy that is more specifically tailored to them. The new method to choose insurance is through an innovative solution with personalised options, payment flexibility, and a digital first approach. The process of purchasing insurance has seen a noteworthy transition, moving from a traditional sales system to a hassle-free digital mechanism with individualised advice and advising.

When choosing health insurance, Millennials and Generation Z want for the brand to be trustworthy and credible. They are referred to as "Evaluators" because they value study and in-depth analysis. They spend a lot of time evaluating the different features that are available, such as cashless claims, rapid documentation & purchases, prompt customer service, a wide network of hospitals, etc. They seek a budget-friendly plan with savings on prescription drugs, doctor visits, diagnostic testing, and targeted preventative treatment, among other things. The fundamental factors to consider while choosing an insurance plan are the claim settlement rate, the sum assured, the affordability of the premium, and the add-on riders.

Check whether the insurance is on a yearly or monthly basis, and determine whether the plan selected or opted for demands any further commitments or obligations. Does the insurer give clients the choice to withdraw at any time so they don't have to commit for the full duration? It is necessary to compare the plan to see if it meets your requirements or wants while considering age, pre-existing conditions, and other factors into account.

The old, boring system of how businesses, and particularly insurance, used to operate, was broken by this new generation, which not only created and initiated it but also broke the chain.