How can They Pursue Millennials and Gen-Z Customers?

Life insurance has been sold in MENA markets since 1980s; and in some of these markets since the 1960s. Yet, life products penetration in the Arab world is still significantly less than 1%!

As we all know, insurance companies are risk carriers, hence highly capitalised per prudent regulations. With such an utterly tiny market take-up like this versus the high capitalisation that life insurance technically requires, how do life insurance achieve adequate ROI, and more importantly, how do they achieve sustainable profitability in the decades to come?

Where are the pockets of real and viable opportunities for the future growth of life business?

This is the question that continues to scratch the heads of even most pioneering CEOs. Many have expanded their communication strategies, launching new products, even leaning into customer education.

The truth is, however, that traditional methods are meeting a generation that speak a different language, especially considering the evolving demographics of millennials and Gen-Z that represent in excess of 50% of working populations today.

As a product, life insurance is something few would argue against; it is well established as an essential, stabilising and deeply valuable instrument. The progress it has had, is due to the tireless efforts of industry executives who have transformed a misunderstood offering into a modern financial asset through their adaptability and sharp eye looking for any opportunities that arises – including customer expectations, upcoming channels or changing regulations.

Despite these feats, adoption in markets such as the Middle East continues to remain low. Life insurance still hovers around 1% as reported by Statista, raising questions for the industry’s leadership: Why, despite clear value, is interest still lagging, especially among younger populations?

Navigating the Disconnect Between Tradition and Modern

One of the most underinsured segments in the market also happens to be the most promising: young adults aged 24 to 35. Being either financially independent or having families with long-term responsibilities, they represent ideal (as well as most profitable) policyholders, not just for the low risk posed to the firm, but customers having tax advantages, cheaper premiums and financial security.

This generation, also being coined the term ‘digital natives’ manage their money confidently, often through fintech applications, investment tools and mobile banking. They are fluent in digital finance but continue to remain disconnected from traditional life insurance.

This isn’t due to disinterest, but because of a mismatch of how propositions are presented. This disconnect isn’t seen as a problem, but a strategic opportunity. Leaders that understand how to meet these customer’s needs gain a competitive edge. And in today’s market, where life insurance firms still face regulatory pressure to hold capital and maintain high solvency ratios, finding sustainable growth through untapped segment is no longer just a competitive move, it is a necessity.

Redefining the Playing Field of Life Insurance

In order to reach the digital native generation, life insurance needs more than client education or marketing, what it needs are tools that match their values and behaviors. The addition of an Investment Robo Advisor such as the one developed by MenaMoney Technology to your life product UX can exactly serve this purpose.

The Robo Advisor acts as a self-guided, gamified experience that helps users plan around life goals, such as marriage, education, homeownership, retirement, assisting to invest appropriately.  It transforms traditional investment into something that’s visual, personal and continuous.

Policyholders can explore their preferred fund choices, compare performance and track their progress in real time. It’s investing with purpose, wrapped in digital simplicity.

More importantly, it becomes a point of constant engagement, making life insurance not just a product, but a partner in their long-term financial journey. Therefore, for life insurance CEOs looking to leapfrog their local markets, they should seriously look into inviting the younger ‘digital native’ segments of their populations whose service and engagement expectations might be totally different from the past decades.

If your firm is considering this key innovation, please Contact here.