Growing Demand for Insurance Among Gen Z and Underserved Groups in Advanced Economies

A Geneva Association report, Inclusive Insurance in Advanced Economies: Alleviating Strains on Society, sheds light on the growing need for more inclusive insurance coverage among underserved demographics, particularly Gen Z, low-income earners, and migrant populations. Surveying over 28,000 households across advanced economies—namely, France, Germany, Italy, Japan, Spain, the U.K., and the U.S.—the study identifies critical ‘inclusion gaps,’ where certain groups face limited access to voluntary insurance. These gaps, the report suggests, can undermine financial resilience and further marginalize individuals already vulnerable to economic instability.

The report reveals striking disparities in insurance ownership rates, with France having the highest rate of voluntary insurance (92%), while the U.S. lags at 78%. Underinsurance is most pronounced among low-income earners, younger adults in Gen Z, and migrant communities, with Gen Z emerging as the demographic most interested in increasing coverage. This generation shows a distinct interest in private health and property insurance, but many face affordability barriers that prevent them from obtaining adequate coverage. Survey respondents identified cost as the primary obstacle to acquiring insurance, an issue common to all surveyed groups, especially low-income individuals and Gen Z, who often lack the financial flexibility to purchase additional insurance.

In response to these findings, Geneva Association leaders suggest that insurers adapt their offerings to meet the specific needs of underserved groups. Managing Director Jad Ariss emphasizes that closing these gaps could not only strengthen financial resilience among these populations but also create growth opportunities for insurers in mature markets. Director of Social & Financial Inclusion, Kai-Uwe Schanz, points out that digital channels and affordable, flexible policies could play a key role in reaching younger consumers and other underserved demographics.

The Geneva Association’s recommendations include designing products that are both accessible and affordable, enhancing customer financial literacy, and collaborating with public sector agencies to better meet the needs of underserved markets. By addressing these inclusion gaps, insurers have a unique opportunity to expand their customer base and help build a more financially resilient society in advanced economies.