The Rise of AfriZens: Engaging the Next Generation of Insurance Consumers

8 min readOct 4, 2023

Introduction

Picture this: a group of dynamic and tech-savvy individuals, their names are Pelumi, Siyah, and Chike. They are ready to take on the world, full of ambition, and eager to embrace the future. But when it comes to insurance, they feel like they’re left out in the cold. The insurance industry seems stuck in the past, speaking a language only their grandparents understand.

Understanding AfriZens and their unique traits.

Generation Z or Gen-Zs as they are commonly called are born between 1997–2012, their age ranges from 11–26 years old. They fall somewhere in between the younger Millennials and the older Alphas, combining characteristics from both generations. Given the unique context of Africa, and particularly Nigeria, traditional terms like Gen-Z and Alpha might not fit well. Therefore, we have taken the liberty of renaming this group as AfriZens. This demographic of individuals has become a staple in today’s society, with their emergence in the workforce and their ability to disrupt traditional expectations.

These attributes collectively establish them as a potent consumer group, one that the insurance sector has not yet fully grasped or successfully engaged with. Over the next few years, this dynamic is likely to shift and eventually, over the course of a decade or so, fully transition to AfriZens.

As AfriZens enter adulthood, there is a significant potential for growth in their demand for insurance products. Studies indicate that within the next three years, AfriZens are expected to undergo significant life changes, such as purchasing homes and cars, starting families, and transitioning jobs or establishing businesses. The crucial question remains: Are insurers ready to seize the opportunities presented by these changes?

Insurance Today

The Insurance industry faces an image problem when it comes to the younger generation. Insurance deals with unsettling matters at an age where risks may not be fully comprehended or acknowledged. The benefits of insurance protection and risk mitigation in different aspects of family, social life, and activities are yet to be fully realized by the younger generation. Given their young age and limited experience in the workforce, AfriZen individuals may have limited financial resources, making affordability an essential factor in choosing insurance

Insurance has been primarily designed to cater to the needs and preferences of older generations, and it might not fully consider Gen-Z in its offerings. The market is characterized by traditional, one-size-fits-all policies, a low amount of information, and the lack of digital platforms for easy access. A recent Majesco Consumer Survey Report on insurance purchase factors among Gen-Z showed that 52% made decisions based on the most comprehensive coverage for a good price, 49% were seeking a provider with a reputation for good service, and 36% decided on a provider because it was easy to purchase. The future of insurance must adapt to accommodate the growth of this new powerful consumer base.

Reinventing Insurance for AfriZens

A fully digital experience

AfriZens are digital natives. They don’t want to be bothered with paper forms and physical interactions when they can be digitized. This does not make them social media obsessed as it is often interpreted, but instead technologically savvy. Unless an absolute necessity, they would rather communicate with their insurers online and use that time to carry out other productive tasks.

The process of obtaining an insurance policy today bears loads of paperwork and complicated processes which makes it a tedious experience. When you have to jump through hoops to get insured, it becomes frustrating up to the point where you may give up entirely. The convenience and simplified process of mobile technology is important to AfriZens.

New types of coverage

AfriZens not only expect seamless digital experiences but are also labeled as “hypercognitive” by trend researchers. They possess a remarkable ability to filter and compare numerous digital sources, allowing them to shape and reshape their purchasing preferences, including their choices for insurance purchases.

As such they are interested in new products that meet their specific needs. Insurance companies need to innovate in their product offerings especially when targeting a new customer segment. They should consider the interests, and pain points of the Gen-Z consumer group and adapt accordingly. Introducing insurance for items like phones, drones, and other tech gadgets is an example.

Personalization and Flexibility

One of the primary reasons cited by younger generations for remaining uninsured is the cost factor. Traditional insurance policies often include coverage that may not align with the customer’s individual needs, making them more expensive. Insurance companies need to have increased flexibility in payment options and policy contents. Policies should be characterized by lower prices, more adaptable payment plans, and personalized coverage tailored to each person’s specific circumstances.

One of the emerging insurance trends is health or life insurance policy which takes into account data related to your lifestyle and current circumstances. It is evident that the traditional “one size fits all” approach is not favored by Gen-Z and as such, insurance companies need to explore ways to provide policies that are highly customized to their users’ specific needs and preferences because personalization is key.

Market Education

Education is of utmost importance in insurance. There are lots of misconceptions on the topic of insurance and specific policies are not well understood by the AfriZen audience who value information. They view insurance as a luxury that is not intended for them so marketing strategies must be specifically targeted at them and include easily digestible and accessible information. This could be in the form of infographic packages, webinars, and social media campaigns.

Personalized guidance is another valuable aspect of market education. Offering one-on-one assistance through chatbots or virtual assistants helps AfriZens navigate insurance options tailored to their unique needs. This interactive and personalized approach enhances the customer experience, ensuring that AfriZens select the most suitable coverage.

Insurance partnerships and purchase packages

Insurance partnerships and purchase packages hold the potential to bridge the gap between AfriZens’ limited interest in insurance and their affinity for technology-related products. They greatly value technology and electronic gadgets, making this approach relevant to their preferences.

By offering insurance products packaged within the sales contracts of technology-related and electronic appliances, Insurers can appeal to AfriZens’ desire for convenience and seamless experiences. When AfriZens enjoy the benefits of having their gadgets repaired or replaced at little to no cost to them through such packages, they begin to understand the tangible value of insurance.

Enhancing Customer Experience for AfriZens

Push online first strategies

The world has become a global market due to the influence of social media and digital innovation, by pushing online strategies insurance becomes more accessible to a larger audience. To improve the customer experience for AfriZens, insurance companies can adopt a marketing strategy of “pushing online first.” This involves forming sales alliances with prominent online retailers and positioning themselves as the recommended insurance provider. By doing so, insurers can cater to AfriZens’ preference for convenience and seamless digital experiences.

By embracing the “push online first” approach, insurance companies can meet AfriZens’ expectations and stay relevant in the future market. This strategy aligns with AfriZens’ digital-first mindset and enhances the customer experience by providing a seamless and efficient way to purchase insurance products online, precisely when and where they need them.

2. Maximum Insurance Product Transparency

Maximum insurance product transparency refers to being completely open and clear when communicating with customers, especially AfriZens, about insurance products and policies. It involves providing comprehensive and easily understandable information regarding coverage, terms, pricing, and any limitations associated with the insurance products.

Product transparency builds trust, as AfriZens value authenticity and honesty. When they feel the insurance provider is transparent, they are more likely to view the company as reliable and trustworthy. Furthermore, by simplifying complex terms and language, insurers make it easier for AfriZens to understand their insurance products. This approach meets AfriZens’ expectations for efficient and accessible service, as they are digital natives and prefer easy access to information online.

3. Emphasizing Individuality

A defining trait of AfriZens is their strong desire for individuality and insurers must learn to cater to this in order to be successful amongst this group. Emphasizing individuality in the insurance customer experience means tailoring insurance products to meet each customer’s specific needs and preferences.

This approach offers personalized coverage, flexible policies, adjustable premiums, and bundled packages. Insurers can offer adjustable premium plans, allowing AfriZens to customize their insurance costs based on their budget and priorities. Insurers can use targeted marketing and communication strategies to present insurance options that resonate with AfriZens’ interests and values.

4. Depicting Relevant Experiences

This involves showcasing real-life scenarios and relatable stories in marketing and communication. By doing so, insurers can connect with AfriZens on a personal level and make insurance more relatable and engaging. For example, insurers can provide testimonials that resonate with AfriZens’ lifestyle and needs. Illustrating how insurance can be relevant in various life stages or situations helps AfriZen customers see the practical value of coverage.

Real-world examples bring authenticity and relatability to insurance offerings, making the customer experience more meaningful and impactful. By depicting relevant experiences, insurers create a sense of empathy and understanding, fostering a stronger connection with AfriZen customers and increasing their likelihood of engaging with insurance products and services.

5. Sustainable Living

By emphasizing sustainable living in insurance offerings, insurers align with AfriZens’ values, providing products that go beyond traditional coverage and support their desire for responsible and balanced living. This approach enhances the customer experience by demonstrating a commitment to broader societal well-being and resonating with AfriZens’ socially conscious mindset.

For AfriZens, sustainability is a crucial aspect of their consumer behavior, and they expect insurers to embrace social and environmental consciousness. To enhance the customer experience for AfriZens, insurance companies must align their values with sustainable living. This means not only adopting sustainable practices within their operations but also actively addressing social and environmental issues in their policies and initiatives.

Conclusion

In conclusion, understanding and engaging with AfriZens requires innovative approaches and a genuine understanding of their preferences and values. The insurance industry must recognize the significance of market education to build trust and transparency with AfriZens.

Pelumi, Siyah, and Chike would love to have an improved customer experience with insurance products that make them feel seen by delivering solutions to their problems. By adopting fully digital experiences, offering new types of coverage, and emphasizing personalization and flexibility, insurers can align their offerings with their preferences.

Insurance companies that adapt to the changing landscape and cater to AfriZens’ unique traits will be well-positioned to thrive and cultivate lasting relationships with this influential generation of consumers.