Good online reviews are more important than price when younger people are deciding on a health and life insurance provider, according to a report from Remark.
A total of 35% of respondents said ‘good online reviews’ was the most important factor in their decision to buy, ahead of price (31%) and an established brand name (12%).
The information came from Remark’s tenth global consumer study, entitled A Decade in Review: Paving the Future of Insurance.
The 2023-24 study interviewed 12,563 people between the ages of 18 and 42 across 22 different markets.
And less than half (46%) of younger Brits were found to have a good understanding of life and health insurance products, while 11% admitted to having ‘no knowledge’.
Advisers fell low on the list when it came to the most popular way for younger people to learn more about insurance products.
Only 13% said they would go to an adviser, with another 16% saying they would turn to a trusted friend or family member.
The most popular route was online (53%) – either via an online course (26%), watching video content (12%), through forums (9%), or social media (6%).
And 24% were triggered into buying their most recent life or health product by a personal recommendation.
The report said that 29% of respondents went online for advice before buying their most recent protection product; 27% went to an IFA, and 27% went to a friend or family member.
But, price is still important as younger consumers are prepared to share data to get discounts on their insurance.
Young people are prepared to share wearable data and details about their medical and mental health history for better deals on life and health insurance, according to the report from Remark.
A total of 72% of 18 to 42 year olds in the UK are prepared to share wearable data to get life or health cover, 82% would share their previous claim history and 71% would share their medical and mental health history, Remark said.
Nina Brown, a protection specialist at Pam Brown Mortgages, said: “The fact that the vast majority of Gen Z and millennials are prepared to share wearable data in return for discounts on their life and health cover is really encouraging as it paves the way for much more personalised – and arguably fairer – applications and policies..
“Not only that but, if offering financial incentives for a healthier lifestyle becomes widespread within the insurance industry, it could have a much wider impact on society.
“Those who are already focusing on their health and fitness will benefit from lower premiums and be encouraged to keep that up or face rising protection costs, while those who are not prioritising healthy living could be forced to make a change for the better – or risk being priced out of cover altogether.”
Gavin Maguire, head of UK and Ireland, life and health at SCOR said: “The data shows that while price is certainly important for Gen Z and millennials – in fact, the vast majority are willing to share personal data in order to get a better price – it is good online reviews that are the most important factor for young people when making that purchase decision.
“The findings also reveal that online access to insurance products is hugely important to young people, and that social media is playing an increasingly important role, with one in 10 (10%) saying it was social media that triggered their most recent life or health insurance purchase.
“However, there is a fine line – the report also suggests that spending too much time on social media may be a contributing factor towards major stress for young people.
“The key takeaway here is that insurers need to recognise the importance of a strong digital presence – enhancing online reputation is going to be key for life and health insurers and brokers looking to tap into a younger market.”
