Insurance Disrupted: The Rise of Gen Z & Millennials

A quiet revolution is reshaping the insurance industry led by a new generation of customers with vastly different expectations. Gen Z and Millennials are forcing insurers to rethink not just how policies are sold, but how they’re explained, experienced and embedded in daily life.

These younger customers are more digitally fluent and far more discerning than their predecessors, says Alain Nathan, Divisional Executive: Commercial and Private at GIB.

“Gone are the days of drawn-out paperwork and hour-long meetings. Younger clients want efficiency, transparency and flexibility, and ideally with the convenience of being able to use their smartphones. They’re still open to advice, but it needs to be on their terms, and on their timelines."

Nathan adds that Gen Z and Millennial clients want a blend of digital and personal interaction. “Specifically, they want the option to shop around or start the process online, but they still tend to reach out via WhatsApp, Teams or email to confirm the details,” he says.

In fact, according to Statista, nearly 46% of health insurance policies in South Africa were taken out online by the end of 2024, signalling a broader shift in consumer habits. And while convenience matters, younger customers still want value for their money, with 45% of South Africans aged 18–35 reportedly still preferring to buy life insurance with some form of human advice.

Nathan points out that the type of insurance that younger consumers are after is also evolving with the times.

“There’s an increasing demand for cyber insurance, commercial crime cover and protection for online businesses, which shows how tech-dependent many young professionals and entrepreneurs have become.”

Local economic data backs this up; according to Standard Bank’s Youth Barometer, over 40% of new home loan enquiries and nearly 38% of vehicle finance deals now come from people under 35. However, this group also tends to have higher instalment-to-income ratios, averaging 16.7%, compared to 11.4% for older buyers. “They’re buying more assets, and often with tighter budgets. That means proper insurance that’s quick to access and simple to claim is essential,” says Nathan.

As such, for the industry, the biggest opportunity lies in using digital platforms, AI and automation to streamline admin while building trust through education. “We need to make insurance more relatable and understandable, but we also need to be honest about what insurance doesn’t cover and managing expectations of these new consumer markets.”

Looking ahead, Gen Z and Millennials are playing a key role in reshaping insurance as consumers, and will soon dominate the industry’s workforce, too.

“There’s a generational baton that needs to be passed, because we are seeing that the future of insurance is most definitely digital and the same time needs to be human-centred, data-driven and deeply shaped by these rising generations of consumers.”