Singapore-based regional insurtech Igloo has shared strategies for insurers to attract Gen Z and boost insurance penetration.

The firm said in a statement on Friday that in Southeast Asia, insurers face the challenge of attracting GenZ—a generation characterized by financial savviness and a desire for financial security.

Despite these traits, it noted that traditional insurance products often fail to resonate with them due to perceived complexity and a general distrust towards traditional financial institutions.

According to the firm, many Gen Z feel that insurance is unnecessary at their age, preferring to focus on immediate
experiences rather than long-term financial products.

To bridge this gap, it opined that insurers need to adopt innovative strategies that align with Gen Z’s preferences and expectations.

The firm believes this is especially key to increasing insurance penetration in Southeast Asia, a fast-growing region where 23 percent of the population is made up of Gen Z.

According to Igloo, insurance products are often perceived as complex and confusing, which can deter younger consumers, insurers therefore should focus on offering straightforward policies with transparent terms and conditions.

Microinsurance, which offers coverage for specific, smaller-scale risks at affordable prices, can be particularly attractive to Gen Z, who may not have substantial financial
resources but still need protection, the firm noted.

“Whether it’s coverage for travel mishaps, gadget protection, or event cancellations, microinsurance policies can be tailored to address these smaller-scale risks at affordable premiums,” it said.

Igloo also highlighted that this generation values convenience and expects services to be integrated into their digital lifestyles effortlessly.

By embedding insurance within products or services that Gen Z already uses and trusts—such as offering gadget insurance at the point of purchase of a mobile phone or laptop, it said insurers can streamline the purchase experience.

“Insurance then becomes more relevant to the consumer, making it a natural part of their purchasing decisions, rather than an afterthought,” it added.

Moreover, it said embedding insurance in relevant contexts enhances its perceived value and relevance to Gen Z.

It noted that insurers can integrate insurance options into digital wallets or payment apps, making it easier for Gen Z to purchase them.

“Through embedding insurance, insurers demonstrate the value of protection in scenarios that resonate with Gen Z’s experiences and priorities, positioning insurance as a supportive and proactive solution in their daily lives,” it said.

Meanwhile, the firm opined that there is a need to gamify insurance to make it fun and rewarding.

According to the firm, gamification involves incorporating game design elements into non-game contexts to enhance user engagement, enjoyment, and motivation.

For insurers, this means transforming routine tasks like policy management and claims processing into interactive activities, creating a more appealing experience for younger consumers, said the firm.

It opined that insurers can offer points, badges, and other incentives for behavior, which will work well for Gen Z who are motivated by rewards and recognition.

For example, users can earn points renewing policies, referring friends, or completing a task. These points can then be redeemed for rewards, creating a sense of value and appreciation.

The firm sees this approach not only incentivizes engagement but also builds a loyal customer base.

According to the firm, gamification can also address the complexity issues GenZ faces with traditional insurance products by simplifying it through interactive tutorials, quizzes, and simulations.

It noted that users can complete these educational modules and earn rewards, making the learning process both informative and engaging.

It also believes insurers targeting Gen Z in Southeast Asia must simplify insurance, making it accessible and rewarding.

“By aligning with Gen Z’s preferences, insurers can build trust and loyalty while expanding insurance penetration,” it added.

Igloo is a regional full-stack insurtech firm which has offices in Singapore, Indonesia, Thailand, The Philippines, Vietnam and Malaysia and tech centers in
China and India.

The firm leverages big data, real-time risk assessment, and end-to-end automated claims management to create business to business to consumer (B2B2C) insurance solutions for platform companies and insurance companies.

It has partnered with over 75 brand names across the markets in various verticals, including insurance, telecommunications, e-commerce, hospitality, health tech and financial services.

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