[Asia Economy Reporter Changhwan Lee] Insurance companies are drawing attention by consecutively launching new products targeting the MZ generation (Millennials + Generation Z), referring to the young generation born from the early 1980s to the early 2000s. As the MZ generation emerges as the main consumer group, insurance companies are also showing efforts to make them their key customers.
According to the insurance industry on the 7th, Shinhan Life launched the 'Roji Whole Life Insurance,' a product exclusively for the MZ generation, on the 1st. Featuring Roji, Shinhan Life's virtual human advertising model, Roji Whole Life Insurance is characterized by significantly reduced premiums to suit the MZ generation, who have a low need for disease-related death coverage. Since the 20s and 30s age group has a low probability of death from disease, this cost-effective product allows them to lower premiums by reducing early death coverage.
Mirae Asset Life also unveiled the 'e-Must Have Variable Annuity Insurance' targeting the MZ generation on the 4th. This bancassurance-exclusive product can be subscribed to non-face-to-face via the KB Kookmin Bank app. Tailored to the mobile-based non-face-to-face product characteristics, it lowers business expenses and maximizes returns through exclusive product investments, aiming to attract the interest of the MZ generation.
Samsung Life also launched the mobile-exclusive 'Samsung Mini Living Protection Insurance (Non-dividend)' on the 6th. This product covers specific infectious diseases such as dengue fever and tetanus, which have increased due to the easing of social distancing and more outdoor activities and travel. It was designed for easy subscription by the MZ generation through a dedicated mobile app and can also be gifted among acquaintances.
In the non-life insurance sector, products targeting the MZ generation are also gaining popularity. Hana Non-Life Insurance stated that the 'One-Day Auto Insurance,' which can be subscribed to on a daily basis, is popular among the MZ generation. Annual sales of One-Day Auto Insurance increased from 3 billion KRW (330,000 cases) in 2020 to 5.3 billion KRW (540,000 cases) last year, and this year, it recorded 4 billion KRW (360,000 cases) in the first half.
The reason insurance companies are introducing insurance products tailored to the tastes of the MZ generation is interpreted as a response to the MZ generation emerging as the main consumer group in our society.
The influence of the MZ generation is also growing in the insurance industry. As the influence of people in their 20s and 30s increases, the proportion of internet subscriptions (CM) in the auto insurance market surpassed face-to-face subscriptions for the first time last year. According to the Korea Insurance Development Institute, the CM channel accounted for 40.7% of auto insurance subscriptions last year, surpassing the face-to-face channel's 39.9% for the first time.
The Korea Insurance Development Institute explained that the growth of the CM channel was driven by the 20-40 age group, who are familiar with internet use and sensitive to price. The CM subscription rates by age group were 62% for those in their 30s, 57% for those in their 20s, 48% for those in their 40s, 30% for those in their 50s, and 27% for those in their 60s.
As this phenomenon appears, insurance companies that had difficulty establishing strategies to respond to the MZ generation have actively launched products through their own research and product development starting this year, according to analysis.
Son Jaehee, a research fellow at the Korea Insurance Research Institute, emphasized, "As the MZ generation grows into the main consumer group, the influence of digital platform companies on the insurance market will become stronger. Identifying what experiences the MZ generation wants through the insurance consumption process is an indispensable element for establishing strategies to respond to the upcoming digital insurance era."
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