Regional insurtech company Igloo has outlined strategies for insurers aiming to attract Gen Z and increase insurance penetration in Southeast Asia (SEA). The challenge, particularly in the Philippines, lies in bridging the gap between traditional insurance offerings and the preferences of a financially savvy yet skeptical younger generation.
Despite a projected 9.5% compound annual growth rate that will elevate the Philippine insurance market to P209 billion by 2028, actual penetration remains low at 1.6%. This is largely due to Gen Z’s perception of insurance as complex and irrelevant, coupled with a general distrust of conventional financial institutions.
Igloo suggests that to engage this demographic, insurers must adapt their approaches. Simplifying insurance products and making them affordable is crucial. Microinsurance, which covers specific risks at lower costs, can appeal to younger consumers who might not have significant financial resources but still require protection. Igloo’s offerings, such as Travel Master and Pet Insure, address specific needs like travel mishaps and pet care, respectively.
Integrating insurance into digital platforms familiar to Gen Z can enhance relevance. Partnerships with fintech services like GCash in the Philippines, Dana in Indonesia, and ZaloPay in Vietnam allow insurers to embed insurance within commonly used apps, streamlining the purchase process.
Gamification is another recommended strategy. By incorporating game-like elements into insurance, such as points and rewards for policy renewals or referrals, insurers can make insurance management more engaging. This approach not only simplifies the process but also motivates Gen Z through interactive and rewarding experiences.
Igloo emphasizes that by aligning with Gen Z’s values and digital habits, insurers can build trust and boost insurance adoption in the region.