Is Your Insurance Claims Process Fit for Zoomers?

12th February 2024

by Nicky Hjerpe

Are insurance companies fully engaging with Gen Z? Although these ‘digital natives’ adore their tech, it’s vital to offer human empathy and other qualities as part of their customer experience in the insurance claims process.

Born between around 1997-2012, Generation Z (aka ‘Zoomers’) have different priorities and traits to other customer segments. This is especially important for UK insurers to recognise, particularly when it comes to the insurance claims process.

With many Zoomers now in their late teens up to mid-20s, they represent a key target group for insurance companies to attract both talent and customers. Typically, they’ll be buying insurance for new phones, pets, home contents, holidays and cars.

It’s reckoned that some of these consumers view purchasing with a brand as an expression of their identity. In fact, they may act as brand ambassadors and offer recommendations among their peers.

However, things can flip suddenly. It’s one thing for insurance companies to win Zoomers as new customers through social media advertising or ethically focused campaigns; it’s another to retain their business.

Gen Z consumers are quick to stop doing business with a company after a poor customer experience (CX): 34% of Gen Z consumers switched brands last year, compared to just 25% of baby boomers, according to wider research into CX.

So how can insurers get off on the right foot with these new consumers – and stay engaged?

Lack of understanding about insurance claims

It’s important to note that many Zoomers will have never made an insurance claim in their lives. But when they do, it could prove a challenge – and a steep learning curve.

Gen Z have grown up with a wealth of technology at their fingertips — hence the name ‘digital natives’. Intuitive apps, seamless self-service, on-demand content, personalised care and live tracking are the norm.

Expectations are high and so they may be thrown if they encounter:

Frustrations may also grow because of other factors sometimes associated with Zoomers, such as financial instability, underlying anxiety or feelings of powerlessness. Brand ambassadors can quickly become brand adversaries who vent on social media.

However, this is also a moment for forward-thinking insurance companies to win over this group of consumers and build lasting loyalty.

Meeting expectations for insurance claims

It’s important for insurance companies to also capitalise on the attributes sought by Gen Z — and provide a superior claims service. Here are some examples.

• Human help when it’s needed: Although Gen Z love their tech, it’s a mistake to imagine they want people-free interaction. Zoomers value ‘authentic’ connections. Researchers found that 19% would choose voice contact, but it’s easy to imagine this number rocketing if the tech failed to meet their needs. So having a timely prompt that lets them speak to a reassuring human customer service advisor – via voice or chat – at just the right moment is vital. As well as talking customers through the claims process, the agent also needs access to personal information. It’s important to provide this blend of human empathy, technology and relevant data for Generation Z.
• Seamless, faster digital processes: The idea of having to repeat detailed information to different contact channels — or needing to print, complete, scan and upload documents will be a major turn-off for Gen Z. It’s important that back-end insurance systems don’t exist in silos. Robotic Process Automation (RPA) can provide the links you need for seamless claims workflows. As a result, forms can be pre-populated and Gen Z customers benefit from great convenience, expedited claims and faster resolutions.
• Ongoing innovation: Are there particular points of friction in the claims journey for Zoomers? If so, then low-code tools are another way improve experiences. You can create low-code teams from frontline customer service teams, claims agents and professional developers — who are empowered to find fixes for bottlenecks whenever they appear. The best low-code tools can be used to streamline and simplify digital journeys without having to rip and replace existing systems. You can adapt services easily over time as needs and expectations evolve. After all, Gen Z are early adopters of new tech.

With the right technology partners, insurance brands can innovate quickly. As Zoomers head into their 30s and beyond, you can secure their lasting loyalty … while you start preparing for the next generation of consumers.