How tech savvy Gen Z is reshaping the insurance sector in India

India is home to over 200 million tech-savvy Gen Z individuals. With more than half the population under the age of 30, this socially conscious and financially aware generation is already driving change across industries—including insurance. The question is: can the insurance sector keep pace and meet their expectations for speed, simplicity, and impact?

Gen Z Is Redefining Consumer Expectations

Usage-based insurance, wearables integration, and modular plans are no longer fringe concepts. They are essential tools for meeting evolving expectations.

Gen Z in India lives predominantly online. According to recent trends, 64% of the population turns to the internet for information, while 63% shop online. But it’s not just about digital habits—it’s about values. More than 80% of Gen Z prefer to align with brands that stand for a cause, and 88% are driven by value, expecting transparency and fairness in every transaction.

This generation demands services that are mobile-first, hyper-personalised, and seamlessly integrated into their lifestyle. Insurance products, therefore, must go beyond traditional coverage—they need to reflect purpose, adaptability, and simplicity.

A Structural Challenge: Low Penetration and Legacy Systems    

Despite India’s rapid digital transformation, insurance penetration remains low—around 4% of GDP, with actual utilisation falling to 3.7% in FY 2023–24. Traditional distribution models and inflexible product designs continue to be major obstacles. Cumbersome paperwork, and one-size-fits-all policies—fail to connect with Gen Z, who expect seamless, tech-driven, and personalised solutions.
While the industry is beginning to adapt and are tailoring personalised products, embracing digital channels and has reduced paperwork, there’s still significant ground to cover to fully meet the expectations of today’s digital-first consumers.

Building a New Insurance Model: Digital, Personalised, and Inclusive

India’s insurance regulator, IRDAI, is laying the groundwork for a digital-first insurance ecosystem. Initiatives like e-KYC, digital policy issuance, and the upcoming Bima Sugam platform are creating a foundation for scalable innovation. The future lies in dynamic, data-driven offerings—policies that adjust based on user behaviour, lifestyle choices, and real-time risk.

What Insurers Must Do Now: A Blueprint for the Gen Z Consumer

To remain relevant and trusted, insurers need to shift from a transactional mindset to a solutions-oriented approach. Here’s what that transformation should look like:

Mobile-First Ecosystems: Intuitive, end-to-end platforms that allow users to compare plans, file claims instantly, renew policies, and access AI-powered support—eliminating friction at every step.

Modular, Behaviour-Based Products: Offer flexible coverage tailored to real-life scenarios—weekend-only travel insurance, “pay-how-you-drive” auto plans, or health riders for freelancers and gig workers.

Health Integration Through Wearables: Use fitness data to tailor premiums, offer rewards, and promote healthier lifestyles—creating ongoing engagement beyond policy issuance.

Authentic Communication: Engage Gen Z through social media, influencers, and peer reviews. Clarity and transparency in policy terms.

Financial Literacy Through Gamification: Equip users with engaging tools that simplify complex insurance concepts and encourage proactive financial planning.

Trust, Relevance, and the Path Forward

Awareness and trust remain a major hurdle. Many Gen Z consumers view insurance as a last resort, not a long-term partner. As they transition into the workforce and gain financial independence, their early interactions with insurance will shape their perceptions for decades.To rebuild this trust, insurers must not only close the “crisis gap” but also reimagine the role of insurance in everyday life. This includes ethical data use, regulatory alignment, and inclusive access—powered by AI and digital infrastructure that enable real-time personalisation and equitable distribution.

A Collective Imperative

This is a critical inflection point. the industry has to adapt to Gen Z’s requirements and respond with urgency and vision to emerge stronger—more inclusive, more innovative, and more resilient.
The future of insurance in India will be shaped not by the policies of the past, but by the expectations of the next generation. Now is the time to act—decisively and collaboratively.

The writer is the Chief Distribution Officer of Zuno General Insurance. Views expressed by the expert are his/her own.