Over half of Gen Z cite distrust or confusion over insurance

Fitness programmes or smartwatch discounts were seen as tools to drive engagement.

More than 50% of Gen Z identified either a lack of understanding of insurance or distrust in providers as key barriers to purchasing insurance, according to GlobalData.

Whilst short-term strategies such as enhanced social media engagement and flexible product design may offer limited success, long-term improvements are needed to build sustainable relationships with younger customers.

A GlobalData poll conducted in Q1 2025 further shows that the industry must go beyond digital upgrades to earn consumer confidence.

“Rising premiums across some personal lines are not helping the situation; increasing the value and engagement insurers offer will be essential in turning this aroun,” Ben Carey-Evans, Senior Insurance analyst at GlobalData, said.

Carey-Evans added that insurers must do more to communicate the benefits of insurance products, especially since many younger consumers encounter the industry through compulsory car insurance, often viewed as a ‘grudge purchase.’

Modern insurance features—such as health insurance plans that include fitness programmes, smartwatch discounts, or smart home devices that promote safety—were noted as potential tools to drive engagement and demonstrate added value.