Consisting of individuals born in mid-nineties and onwards, the Gen Z population in India has recently joined the workforce, are earning well and have no major responsibilities to undertake, hence they may have natural inclination towards the splurging habit. As a result, educating this cohort about financial planning is essential, and insurance plays a pivotal role in this journey.  

As a generation that has grown up with the internet and smartphones, Ridhima Agarwal, an eight-year MDRT member from Dehradun, India, observes that Gen Z’s social lives are dependent on the digital world. “Hence, financial advisors must reshape their strategies in order to cater well to the ever-evolving needs of this generation. Doing so is the only way to build a successful and long-standing relationship with them,” she says.  

The demographic is also more entrepreneurial, and they seek independent work environments, according to Rahul Agarwal, an eight-year MDRT member from Chhattisgarh, India. “They believe in risk-taking. They are single, so they don’t give much importance to long-term insurance plans. They want to create start-ups or businesses instead of being part of companies or big corporations. This is a newfound opportunity for financial advisors. To bank on it, they must strive to study them and understand their needs from their lenses. And that’s why they must approach them with new strategies and win their hearts in the process.” 

Along similar lines, Yash Arondekar, a two-year MDRT member from Indore, India, agrees that Gen Z is becoming increasingly important for the insurance business in India. “While many will be working for several companies, others will start building their own empire. In any case, as they are kickstarting their journey now, they must have financial security, and this is where insurance steps in. Therefore, financial advisors must experiment with new and innovative strategies to tap into this new cohort of clients.”  

Insurance plays a big part in preventing your clients and their loved ones from facing financial crisis, as it protects their long-term and short-term goals by paying off any unplanned expenses. Thus, this makes Gen Z a target market for the insurance sector in India, as they need proper guidance for their betterment to thrive in this new normal.  

Contact: MDRTeditorial@teamlewis.com