In financial services, advisors in India often face the unique challenge of anticipating the needs of Gen Zs and guiding them to secure suitable insurance plans. Advisors should understand their preferences, needs, and financial priorities and drive the importance of insurance as a component of overall economic well-being. At the same time, youngsters must be aware of insurance and its relevance to financial security. Therefore, financial professionals must engage and simplify complex insurance concepts, making them more accessible and relevant.

Komal Atal, a three-year MDRT member from Mumbai, India, believes this broad hypothesis will bridge the gap between Gen Z clients and the required insurance coverage. Atal emphasizes the importance of a fresh approach to meet this generation's distinct financial needs.

Meeting financial challenges

Atal explains Gen Z individuals' fundamental financial challenges: "Many youngsters, working after college, face a major challenge in servicing student loans. Higher education has become very expensive, especially in the top institutes in India. This results in higher student debt. Apart from servicing the loans, youngsters must manage high rentals in Tier 1 and metro cities. Moreover, job instability, the impact of the gig economy and changing employment patterns lead to irregular income and limited access to traditional employee benefits." Atal contends that young people are primarily concerned about saving enough money to meet daily expenses and save up for a rainy day.

She is confident insurance can fix many of these problems. For instance, she says, student loan protection insurance eases the burden of educational debt in case of unexpected life events. Atal also recommends rental insurance, which covers personal property and liability, to provide a security blanket for transient living situations. Income protection and disability insurance guard against job instability, while health insurance lets clients manage healthcare expenses and access necessary medical care.

Atal calls for a tailored approach to comprehending Gen Z clients' financial goals and priorities and offering solutions. She provides an example and recounts, "One of our young clients was eager to invest in stocks. We examined his income, lifestyle, and expenses, crafting a bespoke financial plan. The plan addressed immediate goals and included life and health cover provisions, ensuring a holistic approach to financial well-being. By optimizing the investment growth rate, we were aligned with the client's aspirations, meeting objectives and future cash flow requirements."

Tech in insurance

Gen Z is the first fully digital-native generation and is very tech-savvy, and Atal affirms technology is pivotal in engaging and advising Gen Z clients on insurance products. "To effectively connect, insurance professionals must leverage digital platforms and tools for communication, information dissemination, and policy management. In my practice, I've implemented online chatbots, mobile apps, and web-based portals to facilitate interactions and provide information, aligning with Gen Z's preference for self-service and instant responses. For example, I developed a mobile app that allows Gen Z clients to access educational materials, schedule appointments, and receive updates on their policies seamlessly. This approach not only caters to their tech-savvy nature but also enhances their overall experience with our services," Atal shares.

Moreover, technology enables personalized data-driven financial advice. Atal explains, "Before meeting a client in person, we go through their social media profiles to understand their social stature and lifestyle, making it easier to allot financial products on their portfolios. We can make sharper recommendations based on client needs. By analyzing a client's online behavior and data, insurers can tailor recommendations and coverage options to suit individual needs. Digital tools simplify the application and claims processes, making insurance more transparent and user-friendly.”

Financial services require a dynamic and innovative approach, especially when the client base is young. By simplifying complex insurance concepts, utilizing technology for communication and advice, and offering personalized solutions, advisors can effectively guide Gen Z individuals in India towards financial security and well-being.

Contact: MDRTeditorial@teamlewis.com

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Anticipating the financial needs of Gen Z clients and advising prospects towards adequate insurance cover