Generation Hashtag in Insurance - Thematic Intelligence

Generation Hashtag in Insurance - Thematic Intelligence

Summary

The main players in the Generation Hashtag theme are predominantly startups. Where the insurance industry has traditionally been slow to adapt to change, burgeoning startups have risen to relative prominence by creating novel products, increasing simplicity, and improving the speed of service. These are all facets of insurance that younger consumers are coming to expect from the industry, driven by the change and progress made by other industry-leading companies including -Amazon, Netflix, and Airbnb. The emergence of Generation Rent - (mostly) young consumers who are unable to purchase a home due to the growing disparity between income and house prices - will bring a host of challenges to the industry. Differences in attitudes and openness to technology can create new opportunities for insurers looking to effectively target and reach this next generation of insurance customers.

Generation Hashtag is comprised of consumers aged 16 to 31. This cohort has been shaped by the trends and companies of the modern era, primarily social media and big tech. These companies have shown that almost all products and services can be delivered faster and more efficiently than previously thought. The use of cutting-edge technologies (including -artificial intelligence, the Internet of Things, and big data) has enabled startups in the insurance industry to meet the expectations of Generation Hashtag in providing insurance services. Coupled with Generation Hashtag’s distrust in established financial service institutions, startups have the perfect opportunity to disrupt the industry by targeting and serving this demographic.

Scope

• GlobalData’s 2021 UK Insurance Consumer Survey indicates that 53.9% of Generation Hashtag would be willing to purchase insurance from an unestablished brand compared with 25.4% of older consumers.
• Generation Hashtag also has a greater awareness of startups within the industry, indicating that insurtechs are targeting their marketing well.
• GlobalData’s Q3 2021 Consumer Survey found that 39% of millennials and 32% of Generation Z typically go on city breaks. Meanwhile, GlobalData’s 2021 UK Insurance Consumer Survey found that 55% of Generation Hashtag consumers purchase a single-trip insurance policy over an annual policy.

• Determine how different ideologies of younger consumers will encourage a change in approach for the insurance industry in targeting this cohort.
• Identify features of insurance for which Generation Hashtag has a greater preference due to differences in living styles.
• See how insurtechs and incumbents are adapting strategies to resonate with and market to this demographic.
• Understand how the use of technology in insurance can drive greater uptake and enhance customer service in the eyes of Generation Hashtag.