Millennials and Gen Z are digital natives. They are hyper-connected and operate in a world with information overload. As a result, they rarely get to focus on one thing for a long period of time. They also value simplicity, transparency, personalisation, and prefer instant gratification and memorable experiences.
Enter life insurance. The antagonist to their attitudes and interests.
If their attitudes and interests were Batman, then life insurance is its Bane (pun intended). If it’s Luke Skywalker, then it’s Darth Vader. If it’s Superman, then it’s Lex Luthor. You get the picture.
Despite having spent almost a decade in this industry, I struggle to defend it when it’s accused of being complex, opaque and boring. But all that needs to change. Now.
Financial literacy – the Millennial and Gen Z way
Contrary to what the older generation may feel, financial literacy is not merely a buzzword for the millennials and Gen Z. They are keen to take charge of their finances and are consciously investing time in becoming financially literate. However, unlike their parents, social media is their go-to place for getting financial guidance. Even when it comes to financial knowledge, they prefer to consume content which is both informative and entertaining.
And there’s no dearth of such content on social media. Content that is rendered in engaging formats not only captures their fleeting attention but also helps them form an opinion and make informed decisions. In a way, it’s a marriage of creative storytelling and serious communication. For instance, there are YouTube and Instagram accounts called ‘finfluencers’ who are educating their (largely young) audience on financial basics on investments and other personal finance topics, in a simple and entertaining manner. The world over, Finance Tiktok, also known as FinTok, is a big hit among millennials.
One look at the engagement on these content platforms tells us that Millennials and Gen Z audiences are keen to know more; they just don’t have the time for complex jargon and information overload.
So, what should we as insurers do?
For starters, this audience needs to be made aware of life insurance and its benefits in their language. Insurance education needs to be redefined, to help this audience make more informed choices rather than treat insurance as an optional or even avoidable expense.
The key to this lies in simplification. There’s a critical need for simplifying difficult insurance related topics, without sacrificing their integrity. Millennials and the Gen Z population are spending time, consuming knowledge, and entertainment online. Insurers need to embrace this mindset and reimagine insurance education in a way that not only simplifies insurance but also appeals to this audience base, educates and engages with them, is personalised for their needs, and offers a fresh perspective sans all the confusion.
Bite-sized explanations, videos with a tinge of humour in them, 15-second reels… the digital content landscape is rich. In the insurance sector, there is tremendous opportunity in capitalising it to offer Millennials a simpler and more relatable way to understand life insurance, in a language they understand, on platforms they spend time on, without any bias, or hard selling. We must talk to them and not at them – that is the best way to get them to listen.
Insights by
Nithin Johnson, founding member of KlarifyLife, a consumer education and awareness initiative by HDFC Life
Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of the Economic Times – ET Edge Insights, its management, or its members