Emerging trends across Asia point to a significant shift in insurance engagement among Generation Z, with early financial planning, technology use, and selective risk protection shaping new market dynamics.
Insights from separate surveys by Policybazaar and Sun Life Asia showed that younger consumers are initiating insurance decisions earlier than previous generations, although gaps in financial stability and long-term planning remain evident.
Policybazaar’s 2025 Insurance Awareness Day survey, conducted across India with 4,620 participants, showed that Gen Z respondents (aged 18 to 28) are approaching insurance differently than Millennials.
While 70% of Gen Z said they understand health insurance products well – slightly ahead of Millennials at 67% – their familiarity with term life coverage was lower, with just 25% expressing strong confidence, compared to 45% of Millennials.
This contrast reflects broader generational differences in insurance needs and awareness.
Term insurance, often linked to responsibilities like dependents or debt, saw lower interest from younger adults, with only 19% of Gen Z indicating active consideration, against 35% of Millennials.
Health insurance, by contrast, ranked as the top product of interest for both groups.
Gen Z is also beginning to view insurance as a core component of their financial strategy, alongside stocks, mutual funds, and traditional assets such as gold.
Policybazaar’s data showed that while investments like cryptocurrency are part of the broader mix, risk mitigation products like insurance are gaining priority.
Millennials continue to place value on tangible and protective investments, with health insurance and gold each accounting for 14% of their reported preferences.
The contrast in investment choices underlines differences in life stage and financial goals.
A notable finding is the shift in the perceived ideal age for purchasing insurance.
More than half of Gen Z respondents (52%) believe that individuals should secure health insurance between ages 18 and 25.
In the same age band, 45% said term insurance should be considered – double the percentage of Millennials who said the same.
The use of digital resources for researching and buying insurance is consistent across generations, but preferences vary.
Among Gen Z in India, 46% rely on YouTube for insurance education, while 23% are already using generative AI for research – more than any other group surveyed.
Millennials continue to favour traditional search engines, with 40% preferring platforms like Google.
Sarbvir Singh, joint group CEO at PB Fintech, said that today’s consumers are integrating digital resources into their insurance decisions from the outset.
“What stands out for us is that the new-age consumer is digitally fluent and financially aware in ways we didn’t see earlier,” he said. “As insurance becomes an early decision, the ask from the industry is to build products that make insurance more relevant and relatable. We need to lead with content that explains, platforms that guide, and products that fit neatly into their criteria.”
A separate survey from Sun Life Asia, covering 6,000 individuals across six regional markets, indicated that Gen Z remains the least financially resilient demographic. Only 57% of this group feels financially secure, compared to 66% of Millennials and 69% of Baby Boomers.
Despite having more time to build wealth, Gen Z is more likely to adopt conservative financial strategies.
Sun Life’s data showed 59% identify as cautious investors, and 28% report not seeking financial advice.
Among those who do seek guidance, 19% turn to AI tools, signalling a growing role for technology in personal finance.
David Broom, chief client and distribution officer at Sun Life Asia, stated that economic uncertainty has influenced Gen Z’s risk tolerance.
“The findings from this research clearly underscore a growing divide between those who are actively building financial stability and those who are caught in a cycle of short-term survival,” he said.
Across all generations, high living costs continue to influence priorities.
According to Sun Life, 60% of respondents now focus primarily on managing daily expenses, while long-term goals like retirement planning have declined in priority. Emergency savings have risen as a critical concern, now ranked second overall.
Sun Life’s findings also illustrated a divide between individuals with high and low financial resilience.
Those with higher resilience were more likely to have multi-year financial plans, consult professional advisors, and maintain sufficient emergency funds.
In contrast, low resilience respondents showed limited ability to meet both short- and long-term goals, with only 13% expecting to achieve future financial targets.
