Survey on Australian millennials and Gen Z consumers

Swiss Re's recent analysis provides a quantitative deep dive into the attitudes and behaviours of Australian Millennials and Generation Z towards life insurance. This comprehensive study, informed by Swiss Re's expertise in global consumer trends, meticulously quantifies the preferences, barriers to entry, digital engagement habits, and the social influences that these younger cohorts exhibit towards life insurance.

Focusing on Australians aged 18 to 41, the study meticulously surveyed a diverse group that included both persons born in  Australia and immigrants from Europe, Asia, and the Americas. Through a combination of qualitative interviews with 10 participants and a quantitative survey of 1,000 individuals, the research offered a balanced view across gender, with incomes spanning up to AUD 150,000. A significant 81% of these respondents were employed, providing a robust framework for the study's insights.

The survey revealed that around 6 out of 10 respondents are in committed relationships (25% married and 34% in a relationship), showing a strong orientation towards stable familial structures. Additionally, a forward-looking 2/3rds either already have children or plan to, broken down into 10% with one child, 12% with two or more, and a future-focused 44% planning for children. Property ownership is a major goal, with more than 9 out of 10 people having or intending to buy property – 32% own one property, 5% own two or more, and a prospective 55% aim to purchase in the future.

The study underscores a pronounced demand for life insurance, with 7 out of 10 of respondents either covered or planning to secure coverage—comprising 25% already insured and 45% intending to get insured. Notably, 69% possess life insurance through their superannuation, often by default, highlighting a potential area for personalized policy enhancement. Interestingly, immigrants were found to be 10% more likely to have life insurance than the respondents born in Australia, typically through private policies.

While 41% of those insured feel their coverage is adequate, 37% express a desire to increase their insurance due to family growth. However, a concerning 10% are unsure about the adequacy of their coverage. The reluctance to purchase insurance is primarily attributed to perceived youth (37%) and affordability concerns (34%). For those cancelling their insurance, high costs (42%), increased living expenses (21%), and a lack of perceived need (18%) were the main reasons.

More than half of the surveyed group prefers online transactions for insurance purchases, with 19% favouring purchase through superannuation and 17% seeking a mix of independent research and professional advice. The top priorities for choosing an insurer were competitive pricing, clear policy details, and brand reputation. There's a notable demand for responsive customer service and 24/7 self-service capabilities, with 9 out of 10 people interested in health and wellness programs that offer incentives for maintaining a healthy lifestyle.

Social media plays a pivotal role in financial decision-making, with 96% of participants using these platforms for personal connections and staying updated with news. A regular engagement rate (often daily) for 7 out of 10 people across platforms like YouTube, Reddit, and Instagram indicates a high consumption of financial advice and news, suggesting a strategic avenue for insurers to engage with this demographic.

Swiss Re's study not only quantifies the preferences of younger Australians towards life insurance but also underscores the imperative for the industry to evolve with these changing demands. The adaptation to digital-first and customisable insurance products resonates well with millennials and Gen Z in Australia, who value tailored and flexible solutions that align with their lifestyle and needs.

This approach opens growth opportunities, not only by catering to the unique preferences of these younger demographics but also by addressing the needs of immigrants and forming strategic partnerships with superannuation funds. Recognising the importance of effective communication and offering entry-level products is crucial in this context, as it ensures that insurance is accessible and comprehensible to all segments of the population.

Furthermore, the shift towards consumer-centric models underscores the necessity of digital innovation in offering more personalised and engaging customer experiences. By utilising new data sources, insurers can improve accessibility and innovate product offerings that meet the nuanced needs of today's consumers.

Swiss Re, with our deep industry knowledge and analytical strength is strategically positioned to support life insurers in leveraging these trends. Our thought leadership and support for enhanced digital platforms for engagement and education, positions us as a key player in fostering innovation and enhancing customer satisfaction in an increasingly digital-first world. This holistic approach not only propels the industry forward, but also ensures that insurance providers remain relevant and competitive in catering to the evolving landscape of consumer preferences.

Get in touch with Swiss Re's customer experience experts in Australia and New Zealand to explore more and find out how we can support you.

Acknowledgments: Special thanks to Katarzyna Wonko for her valuable contributions to this survey.