How Gen Z and Millenials are Quietly Disrupting the Insurance Industry

Alain Nathan, Divisional Executive: Commercial and Private at GIB

Insurance is one of those things people never think about, until they absolutely have to. And when that time comes, it’s either stressful, confusing or, frankly, just boring. That’s especially true for Gen Z, a generation raised on instant everything and sleek digital experiences. Waiting on hold or sifting through policy documents? Not a chance.

But that disinterest doesn’t mean they’re careless. It just means the insurance industry, built around slow processes and old-school trust-building, has a generational challenge on its hands. And quietly, almost subtly, Gen Z and their Millennial counterparts are reshaping how things work.

“Gone are the days of drawn-out paperwork and hour-long meetings,” says Alain Nathan, Divisional Executive: Commercial and Private at GIB. “This generation wants efficiency, transparency and flexibility, and they want it on their phones.”

According to Statista, nearly 46% of health insurance policies in South Africa were taken out online by the end of 2024, a statistic that signals more than just digital adoption. It’s a complete rewire of how younger consumers value their time and trust brands. Even life insurance, which has traditionally relied on a personal touch, is shifting. Forty-five percent of South Africans aged 18–35 still prefer some form of human advice, but they’re not walking into offices to get it, they’re sending a WhatsApp. “They like to shop around online, but will often reach out via Teams, email or voice note to confirm the details,” says Nathan. “It’s still personal, just on their terms.”

And it's not just how they're buying insurance, it's what they’re insuring. Young professionals and entrepreneurs are increasingly opting for cyber insurance, commercial crime cover and protection for online businesses. The risks are different now. Your laptop and Instagram page could be more valuable than your car.

Standard Bank’s Youth Barometer shows just how financially active this group is: over 40% of new home loan enquiries and nearly 38% of vehicle finance deals now come from people under 35. But with higher instalment-to-income ratios than older buyers, 16.7% versus 11.4%, there’s a lot more at stake if things go wrong. “They’re buying more assets, and often with tighter budgets,” says Nathan. “That makes insurance that’s quick to access and simple to claim absolutely essential.”

This is actually a massive opportunity for the insurance industry, but only for those willing to adapt. AI, automation and education are crucial tools for simplifying the admin and cutting the jargon. But more than that, insurers need to become relatable.

“We need to make insurance easier to understand, yes, but also be honest about what it doesn’t cover,” Nathan adds. “Managing expectations is just as important as selling the dream.”

And in the long run, the change won’t just come from consumers. These same generations will soon dominate the insurance workforce. As Nathan puts it, “There’s a generational baton that needs to be passed. The future of insurance is most definitely digital, but it also needs to be human-centred, data-driven and shaped by the people it’s meant to serve.”

The message is clear: paper trails are out, smart UX is in, and if the industry wants to stay relevant, it needs to start thinking younger. Whether it's Gen Z just starting out, or Millennials moving into their peak earning years, the message is clear: the future of insurance must be digital-first, human-centred and radically more transparent.