European Gen Zs' main concerns are not being able to support themselves, their family or afford a property, which highlights their sense of responsibility for their own fate and for the wellbeing of their families, the study explains. War is another source of concern, especially for men in Eastern European countries.
Young people have a stronger interest in improving their wellbeing than other generations (Gen Z – 26%, Millennials – 24%, Gen X – 22%). They actively seek ways to enjoy their lives and are more eager than their older peers to spend money on self-care and experiences (Gen Z – 28%, Millennials – 22%, Gen X – 21%). While they are not focused on saving for retirement yet, they are willing to invest in their own health and wellbeing (24%) and skills (18%).
Young people are on the same page as other age groups when it comes to money providing a sense of security (Gen Z – 33%, Millennials – 32%, Gen X – 32%), but are less concerned about their finances and do not consider themselves to be as frugal as other generations (Gen Z – 24%, Millennials – 26%, Gen X – 30%). This may stem from favourable economic circumstances, which have made them more relaxed about money, the study explains. Gen Zs are entering the market in a period of low unemployment and high wages, which also leads to lower price sensitivity, at least when it comes to insurance products, as suggested by their answers.
“Generally, purchasing insurance is the result of proactive sales efforts rather than spontaneous consumer demand, so intermediaries such as agents, brokers, banks, travel agencies or car dealers have been the main sales channel. But Gen Z are already challenging the insurance industry, as our study shows. Consumers' preferred insurance sales channels vary across different generations, reflecting changes in their behaviour. While Gen X usually go to their trusted agent for buying insurance, Gen Z prefers to use a wider variety of channels, depending on the situation – internet, agents and brokers, mobile apps, physical branches, and even embedded insurance. For instance, they favour self-service channels for simple insurance products, but prefer physical channels for complex products such as life, car or home insurance. It's only an example of insightful data provided by our study to insurance companies that should be able to help them shape their strategies,” said Claudiu Ghiurluc, Audit and Assurance Partner, Deloitte Romania, and Leader of the Insurance Industry.
The study also indicates that Gen Z utilize the multitude of available knowledge sources and they approach any topic, including insurance, with an inquisitive mind, conduct their own research from multiple sources and compare offers before making a purchase decision.
With increasing housing prices and cost of living, many young consumers in Europe still live with their parents. Among those who have moved out of the parents' homes, Gen Z in Romania stand out for being less inclined to rent than their peers in other countries, showing a strong preference for home ownership, much like previous generations. Another difference highlighted by the study is that Romania has a considerably higher rate of young people who make plans for their future (96%), among which 54% have well defined plans, compared to 40%, the European average.
“Although Romania has the highest homeownership rates, even among Gen Z, interest in home insurance is not higher than in other countries, according to our study. Another interesting fact highlighted by the report is that over two-thirds of Romanian Gen Z say they lack sufficient information about insurance. They primarily rely on insurance company websites (35%) and third-party websites (34%) for information, but also on family (23%),” said Ana Serban, Actuarial and Insurance Solutions Director, Deloitte Romania.
The Deloitte study “How does European Generation Z buy insurance?” was conducted among over 10,000 consumers in Czech Republic, France, Germany, Hungary, Italy, Netherlands, Poland, Romania and Spain, aged 23-55, and explores their outlook on future, planning and insurance products.
