Estimated read time: 4 minutes 

In order to truly connect with current and future clients, you need to know what makes them tick. As Generation Z advances into adulthood, it’s important to understand this emerging demographic’s background, needs and priorities.

Generation Z—aka Gen Z—includes people born roughly between 1996-2015. Currently between the ages of 6-26, they make up about one-third of the world’s population.

Although new to the workforce, Gen Zers are poised to become a major economic force. By 2031, they’ll eclipse Millennials in spending power, accounting for more than one-quarter of the world’s income.

Simultaneously, Gen Z’s need for life insurance and asset protection will also increase. You may already count a few ambitious Gen Zers among your clients—and if not, opportunities will soon present themselves. In order to seize them, what should you know about these up-and-coming prime prospects?

Coming of Age in an Uncertain World

From 9/11 to the Great Recession to the COVID-19 pandemic, Gen Zers are growing up in an unstable, high-risk world. 

According to a recent Pew Research survey, half of the oldest Gen Zers report that either they or a family member lost a job or took a pay cut as a result of the pandemic. Prior to this, many witnessed their parents struggling with unemployment during the 2007 recession.  

Not surprisingly, this generation is financially-driven and stability-minded. In a recent Deloitte survey, 46% of Gen Zers reported feeling stressed most or all of the time—and for two-thirds of them, it was due to financial problems. As a result, many Gen Zers are focused on their careers and earnings. It’s likely they’ll want to protect their assets.  

Research indicates that many Gen Zers are committed to saving for the future and prioritize job stability over salary. One Brazilian study found that 42% of Gen Zers are already employed full or part time—an impressive percentage for such a young age.

While these qualities make Gen Zers promising life insurance prospects, converting them may not be easy. Despite their financial ambitions, they’re skeptical of traditional corporations and brands, including those in the insurance industry.

Understanding the Gen Z Mindset

While every person is a unique individual, research indicates that many Gen Zers share certain traits:

• Gen Zers Are True, 24/7 Digital Natives
  Most Gen Zers can’t remember life before smartphones and social media. They pick up new technology easily; performing online research is second nature. As a result, they’re used to getting answers on-demand, expect 24/7 service, and often have short attention spans.
• Gen Z Wants Personalized…Everything
  The most diverse and inclusive generation to date, Gen Zers value individuality and demand personalized products. A full 58%  are willing to pay more for them, and they’re driven by quality over price.   
• Gen Z Loathes Being “Sold To”
  Studies find that Gen Z doesn’t respond positively to conventional advertising and distrusts mainstream brands. Gen Z makes purchasing decisions analytically—although many prefer supporting ethical, socially responsible businesses.    
• Gen Z Is Leery of Insurance Companies
  In one industry study, 100% of respondents reported having negative experiences with insurers, finding carriers to be non-transparent, untrustworthy, and hard to understand. They were alienated by overly-aggressive agents. At the same time, they worried about making poor decisions and sought knowledgeable guidance. 
• Gen Z Prefers Face-to-Face Conversations
  Despite all their digital know-how, when it comes to decision-making, Gen Zers seek in-person interactions. Unlike Millennials, this generation—which grew up on Skype and Snapchat—prefers direct conversation over emails.

In fact, according to one property casualty survey, they’d rather call their agent on the phone rather than communicate digitally.

Strategies for Connecting with Gen Z

Gen Z is complicated. In order win over this skeptical-but security-minded prospect, your best approach may be to:

1. Be direct and authentic. Ditch the sales pitch for straightforward dialogue—and proceed at the prospect’s pace. A hard-sell technique is unlikely to work here. 
2. Make sure your tech skills are up-to-date. Be ready to conduct business electronically as well as face-to-face.
3. Emphasize security. Explain how various policies help protect and grow assets, stressing the guarantees they offer versus other investment vehicles.
4. As always, make it personal. Once you know what your prospects want, leverage our product line’s flexibility and options to craft highly-personalized proposals.
5. Focus on quality—something this generation values. Reference PALIG’s A ratings and century-plus track record of delivering for clients.
6. Show them how social responsibility fits into the equation. Active in your community? Tell them. Reference PALIG’s many charitable activities, too.
7. Share knowledge and know-how they can’t find online. In doing so, you’ll demonstrate the advantages of making you their insurance advisor.

Ready or not, Gen Z is here, and so is a fresh, new opportunity for producers. Connect with them on their wavelength, give them the information they seek on their chosen terms—and get ready to welcome a new wave of soon-to-be, much-valued clients.