Igloo tells 3 strategies to captivate Gen Z in Southeast Asia

40% of Gen Z are worried about making poor financial choices.

Southeast Asian insurers are challenged with attracting Gen Z, a financially savvy generation that desires security but often finds traditional insurance products complex and untrustworthy. Many in this demographic view insurance as unnecessary at their age, focusing more on immediate experiences, Igloo said.

A study by EY found that nearly 40% of Gen Z are worried about making poor financial choices, and a survey by Accenture revealed that 52% of Gen Z in Southeast Asia distrust traditional insurers due to fears of hidden clauses and high premiums.

To engage Gen Z effectively, insurers must adopt innovative strategies that align with their preferences: affordability, understanding needs, and gamification.

Igloo emphasises the importance of these strategies in increasing insurance penetration in Southeast Asia, where Gen Z makes up 23% of the population.

First, insurers should simplify and make insurance affordable. Complex and confusing products deter younger consumers. 

Offering straightforward policies with transparent terms can attract Gen Z. Microinsurance, which provides coverage for specific, smaller-scale risks at affordable prices, is particularly appealing to this group. 

For example, in Indonesia, Igloo offers Gamer's Protection for gaming-related health issues and a Safe Dining Plan for food poisoning. These targeted solutions show insurers' understanding of Gen Z's priorities and financial constraints, fostering a stronger connection.

Second, insurers need to meet Gen Z where they are. This generation values convenience and expects services to integrate seamlessly into their digital lifestyles. Embedding insurance within products or services Gen Z already uses, such as gadget insurance at the point of purchase, can streamline the buying experience. 

This makes insurance more relevant and natural in their purchasing decisions. Integrating insurance options into digital wallets or payment apps further enhances its perceived value. Igloo has partnered with fintech platforms to integrate their products into familiar platforms for Gen Z.

Lastly, gamifying insurance can make it more engaging and rewarding. By incorporating game design elements into policy management and claims processing, insurers can create a more appealing experience for younger consumers. 

Offering points, badges, and other incentives for behaviours such as renewing policies or referring friends can motivate Gen Z, who are driven by rewards and recognition. 

These points can be redeemed for rewards, fostering a sense of value and appreciation. Gamification also helps simplify complex insurance products through interactive tutorials, quizzes, and simulations, making the learning process both informative and engaging.