GlobalDataFinancialServices

Mon, Jun 9, 2025, 7:29 AM2 min read

A GlobalData poll has highlighted that insurers targeting younger generations are struggling with deep-rooted issues, such as low levels of trust and limited understanding of insurance products. Meanwhile, a survey by Insurance Europe—in collaboration with the European Youth Parliament (EYP)—found that younger consumers want insurance to be simpler, more-digital, and better tailored to their specific needs.

A GlobalData poll conducted on Life Insurance International in Q1 2025 found that either a lack of understanding of the value of insurance (39.7%) or a lack of trust in insurance providers (27%) were the key challenges in selling insurance to Gen Z and millennials. This was followed by lack of seamless, digital-first purchase experiences (13.2%) and complexity of traditional policy structures (8%).

Meanwhile, a new survey by Insurance Europe and the EYP, which gathered responses from 651 young people across 33 European countries, found that many described the process of buying insurance as overly complicated and burdened by paperwork. The findings showed that 57% of respondents did not find purchasing insurance to be an easy process. Additionally, seven in 10 expressed a desire for clearer and more-consumer-friendly information. A lack of financial education was also a recurring theme, with 82% stating they had not received sufficient education at school to make informed decisions about insurance. Despite these challenges, the survey found that 82% were willing to pay more for better coverage and benefits; suggesting that product quality is a higher priority than price for many young consumers. This points to an opportunity for insurers to build stronger engagement with younger demographics by focusing on tailored, value-rich products that offer clarity and relevance, rather than simply competing on cost.

Overall, if insurers want to gain long-term traction with Gen Z and millennials, they must rebuild trust through transparency, simplify the purchasing journey, and prioritise education, alongside product innovation.

"Rebuilding trust and simplifying insurance will win over the next generation" was originally created and published by Life Insurance International, a GlobalData owned brand.

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