The next generation is looking for better protection—and they’re not finding enough of it. According to a new survey by The Geneva Association, a significant portion of Gen Z across developed countries is underinsured, leaving them vulnerable to financial shocks. The findings highlight an urgent need for the insurance industry to adapt and innovate to meet this demographic’s evolving needs.
The survey, which polled 28,000 households in countries including France, Germany, Japan, and the United States, revealed that underinsurance remains a pressing issue for various segments of society, particularly low-income earners, migrants, and Gen Z. With ownership of voluntary insurance coverage varying widely from 92% in France to 78% in the United States, it’s clear that accessibility to insurance remains uneven across even the most advanced economies.
Gen Z: Hungry for Coverage But Held Back by Cost
The appetite for insurance coverage is notably highest among Gen Z respondents, with 32% expressing interest in purchasing more policies. Their primary interest lies in private health and property insurance—essential areas that can provide much-needed financial stability. Yet, despite this demand, affordability issues are holding many back from getting the coverage they need.
Affordability was cited as the most common reason for not buying more insurance across all surveyed groups, underlining the critical barrier that cost still represents, even in advanced economies. This trend is particularly worrying as Gen Z—often in the early stages of their careers—faces rising financial pressures, from student loans to high living costs, which can exacerbate the risks associated with being underinsured.
A Growing Opportunity for Insurers
The Geneva Association’s report emphasizes the potential role insurers can play in addressing these gaps. Jad Ariss, Managing Director of The Geneva Association, highlighted that inclusion gaps are likely to grow for many socio-demographic groups unless proactive steps are taken. For insurers, this represents not only a responsibility but also an opportunity to innovate and expand in mature markets.
“Improving accessibility to insurance—for example, through digital channels—and offering more affordable, flexible, and personalized products will be key to appealing to the Gen Z demographic,” said Kai-Uwe Schanz, Director of Social & Financial Inclusion at The Geneva Association. Insurers need to rethink their approach, adapting offerings to meet the unique needs of underserved groups such as Gen Z.
With Gen Z particularly open to expanding their coverage, insurers have a window of opportunity to create products that resonate with this tech-savvy and value-conscious generation. Digital-first approaches, flexibility in terms, and personalized packages could all be part of the solution to bring more of Gen Z under the umbrella of adequate insurance protection.
Inclusive Insurance for Financial Resilience
The Geneva Association’s report serves as a wake-up call for the insurance industry: the status quo is not sufficient to safeguard the financial well-being of younger generations. As Gen Z steps into adulthood, insurers must meet them where they are—offering coverage that is accessible, affordable, and aligned with their needs and values.
Inclusion gaps in advanced economies can leave millions vulnerable to financial shocks, especially as global uncertainty continues to rise. For Gen Z, who are just beginning to build their financial futures, having adequate insurance is not just about protection—it’s about resilience and opportunity. The insurance industry’s ability to adapt and close these gaps will be crucial not only for individuals but also for societal stability and economic growth.