Generation Z refers to young people born after 1995. Today they are becoming key players in the economy: traveling, working as freelancers, actively engaging in sports, and investing. However, despite this, they almost never use traditional insurance services.
The reason is simple: traditional insurance does not match their experience with other digital services. Long questionnaires, PDF policies, calls to call centers—all of these contradict the habit of “doing everything in two clicks.” To avoid losing these customers, the insurance market must undergo radical changes.
Digital habits and expectations
Gen Z is accustomed to interfaces where everything is intuitive: subscription-based movies, one-click purchases, finances managed through apps. They expect the same simplicity, speed, and personalization from insurance products.
They do not tolerate complex scenarios. If it takes more than a minute to complete an application or if they have to wait for an email response or make a support call, all of this is perceived as outdated. For them, an insurance product should be just as easy as ordering a taxi via app.
What gen Z wants from insurance services
For Generation Z, it’s important that insurance becomes part of their daily digital life. An insurance policy should automatically appear when buying plane tickets, injury coverage within fitness apps, or accident insurance while renting a bike.
What they want to see includes:
- Insurance as a function rather than a separate service;
- Instant activation/deactivation without contracts or waiting periods;
- Clear, visually understandable interface;
- Useful notifications, personalized advice, and clear outcomes.
If these expectations aren’t met, insurance will simply be ignored as irrelevant.
How the insurtech market responds
Classic products are being replaced by digital solutions. Insurtech companies offer models much closer to the lifestyle of younger generations:
- Subscription-based insurance with auto-renewal and full transparency;
- Pay-as-you-go (PAYG): insurance activated only during active times (trip, workout, flight);
- Embedded insurance integrated into purchases or subscriptions;
- Risk assessment based on trackers, gamification, and real-time feedback.
These formats are already gaining traction in Europe, the US, and Asia. In Russia and CIS countries, they are just beginning to gain momentum, making now the perfect time to enter this niche.
Why change is necessary now
Generation Z isn’t just youth but potential clients over the next 40 years. They won’t endure inconvenience; if an interface is uncomfortable, they’ll close the service immediately.
Competition for their attention is already high: fintechs, marketplaces, and superapps quickly learn how to embed insurance seamlessly into user experiences. These platforms provide strong functionality, flexible interaction, and clear value.
If classic insurers don’t adapt, they risk losing new customers before those even consider insurance at all.
Conclusion
Generation Z won’t change themselves to fit insurance needs—it’s insurance that has to change to meet theirs. Companies that are currently reshaping their products and interfaces according to digital generation habits are shaping a new understanding of insurance protection’s value.
The future belongs to flexible, embedded, transparent solutions; anything else will remain in the past along with faxes and paper forms.
Author: Aleksandr Vasiltsov Market & Competitive Intelligence Analyst (junior)
