An Insurance Agent’s Field Guide to Gen Z

(DESCRIPTION)
Title: Wednesdays with Woodward (registered trademark) Webinar Series. 

Travelers Institute (registered trademark), Logo, Travelers.

(SPEECH)
JESSICA KEARNEY: Good afternoon and thank you so much for joining us. Welcome to Wednesdays with Woodward, a webinar series where we convene leading experts on topics at the intersection of insurance, business and, of course, public policy. We're so glad that you're here with us today. I'm Jessica Kearney, Assistant Vice President here at the Travelers Institute, and I'm standing in for our host, Joan Woodward. Before we get started, as always, one housekeeping item, we'd like to share a disclaimer about today's program. 

(DESCRIPTION)
Text, About Travelers Institute (registered trademark) Webinars. The Wednesdays with Woodward (registered trademark) educational webinar series is presented by the Travelers Institute, the public policy division of Travelers. This program is offered for informational and educational purposes only. You should consult with your financial, legal, insurance or other advisors about any practices suggested by this program. Please note that this session is being recorded and may be used as Travelers deems appropriate. 

(SPEECH)
I'd also like to extend my enormous thanks to our program partners today, who you'll see listed here on screen. We have TrustedChoice.com, the MetroHartford Alliance, the Master's in FinTech Program at the University of Connecticut School of Business, and the Insurance Association of Connecticut. We appreciate your support and thank you so much for being here with us. 

(DESCRIPTION)
Text, An Insurance Agent's Field Guide to Gen Z. 

(SPEECH)
Today, we're going to be talking about all things Generation Z. You may have seen our webinar last fall, looking at how businesses recruit, retain and work with Gen Z, and how we really connect with them as consumers.

And I have to say, on a personal note, that program surpassed really all expectations and became really one of our most popular programs to date. And judging by our numbers for today, this program should be no exception. Our audiences are showing up, and you're taking notes about Gen Z. So, more than half of this cohort has now crossed into adulthood, which means they're starting to engage in insurance. And that's what we're going to be looking at today. They're buying cars and homes, and they're even starting businesses. So we want to know, what do these young adults think about property and casualty insurance, for one, and how are they different potentially from boomers or millennials who came before them? 

How are they viewing this topic? And how do insurance agents reach them? So that's going to be at the core of our conversation today. And I'll just stop you right there, the answer is yes, this is going to be recorded. It's going to be posted on our website. So the replay will be available if you want to share this later with your friends and colleagues. We have the amazing Jacqui Heidelberger here back with us today to share her new research findings on Generation Z. Jacqui is Assistant Vice President of Cross-Portfolio Strategies within Enterprise Market Research here at Travelers.

In this role, she leads research that helps our company really stay at the forefront of emerging trends and market developments. Jacqui and her team use data-driven methodologies, which you're going to hear a lot more about today, to explore a possible future scenarios for our business and help with strategic planning. Jacqui has had a wide range of insight initiatives, including product development, marketing, and advertising, emerging technologies, so think things like telematics, and IoT, and blockchain, and really identifying and understanding the needs of the connected customer.

(DESCRIPTION)
Text, Speakers. Jessica Kearney. Assistant Vice President, Travelers Institute, Travelers. Jacqui Heidelberger. Assistant Vice President, Cross-Portfolio Strategies & Initiatives, Enterprise Market Research, Travelers. 

(SPEECH)
We are so fortunate to have Jacqui back with us again today to share her insights into Gen Z. If you have questions for her, please drop them into the Q&A. I'm going to try to get to as many of your questions as we can, and we'll get to them after the presentation. And with that, I'd like to welcome Jacqui to the floor and have her take it away. 

(DESCRIPTION)
A red book cover appears with the text, Wednesdays with Woodward (registered trademark) Webinar Series. An Insurance Agent's Field Guide to Gen Z. Travelers Institute (registered trademark), Logo, Travelers. 

(SPEECH)
JACQUI HEIDELBERGER: Thank you for having me back, Jessica. I'm excited to be back, sharing our Insurance Agent's Field Guide to Gen Z. Now, field guides are helpful tools. They're handy reference material when you're learning about a new topic. Typically, they are written about plants, and insects, and wildlife. But today, we'll be talking about Gen Z. Field guides are full of information that help you identify and understand important characteristics, behaviors and even habitats. And this guide is no different. Each section will provide you insights, examples and tips for how you can better engage with Gen Z. 

(DESCRIPTION)
Text, Introduction to the Gen Z field guide. This field guide is designed to empower independent agents by arming them with a combination of: Immediately actionable tactics. Insights to help develop long-term, future ready strategies that contemplate Gen Z. 

(SPEECH)
So this field guide, when we took the approach to developing it, we really wanted to make sure that we designed it to empower independent agents with a combination of immediately actionable tactics, as well as insights to inform long-term, future-ready strategies that fully contemplate Gen Z. 

(DESCRIPTION)
Text, Important things to keep in mind when using this field guide. No individual can encapsulate every aspect of a generation all the time. Some things are true because of their age. Some things are true because they are uniquely Gen Z. 

(SPEECH)
Well, there are a few important things I'll ask you to keep in mind as we go through our time today. The first thing is that no individual can encapsulate every aspect of a generation, all of the time. So if you know a Gen Z and some of what we talk about today doesn't align with them as an individual, that's OK. At the end of the day, we're all individuals with lots of complexity. 

Now, sometimes in settings like this, it is helpful to isolate a generation and sort of elevate some of their unique characteristics or tendencies. And sometimes, the way that can get talked about can sound a bit black and white, a bit all or nothing. But I want you to keep in mind that what we talk about today isn't meant to apply to every member of the generation, all of the time. Next, some of what we talk about today is true simply because of Gen Z's age. And these are things that all generations, more or less, go through at the same age. And as they age, they become less true or less core to who they are.

But other things we talk about today are true because they're uniquely Gen Z. And these are called cohort effects. They’re responses to major events that take place during a generation's formative years, and they're things that are likely to persist in some form or fashion as Gen Z ages. And I will make sure that I call some of these out as we go through our time together today.

(DESCRIPTION)
Text, Why Gen Z? And why now? The oldest Gen Z are 26, and while they are a small segment of most agency's book today, they will become a meaningful proportion over time. A Gen Z Timeline appears to the right from years 2020 to 2030 with notes on certain data.

(SPEECH)
So sometimes people will ask me, why Gen Z? Why now? Well, the oldest of them are 26, and they are certainly beginning to have an impact on the market, whether it's as voters-- more than half are now eligible to vote, as workers-- they are about a quarter of the workforce and soon to be a third, or as homeowners and business owners. 

Gen Z may be a small segment of most agencies’ book today, but they will become a meaningful proportion soon.

(DESCRIPTION)
Text, The Gen Z trail map. A rudimentary map made of a dotted line through 7 stops. 

(SPEECH)
Next, I want to show you our trail map. This is the course we'll be following and the stops we'll be making to develop a deeper understanding of Gen Z. So you can see, we're going to cover things like how to identify Gen Z. We'll understand lifestage and notable characteristics, as well as common mindsets. We'll also be exploring their habitat and the insurance landscape. And we'll conclude at stop 7 on creating comfort and building trust. 

(DESCRIPTION)
Text, Identification: Birth years, age. Multiculturalism. Diversity. 

(SPEECH)
So, now that you know what we're here to do today and you know the map we'll be following, we'll start with identification. What are some of the signs you can look for to know that you're interacting with a member of this generation? 

(DESCRIPTION)
Text, Birth years. Gen Z was born between 1997 to 2012. 11 to 26 years old. About 70 million in the United States. 

(SPEECH)
Age is usually the easiest way. Gen Z is the group of people born between 1997 and 2012. That makes them between 11 and 26 years old today. They represent 20% of the population, and they account for approximately 70 million Americans. 

(DESCRIPTION)
Text, Multicultural. A pie chart depicts 48% of Gen Z to be Black, Asian, Native American, Islander or Alaskan, Any 2+ Races, Hispanic. Similar pie charts depict 18% of boomers to be multicultural, 30% of Gen X and 39% of millennials. 

(SPEECH)
Gen Z is also more multicultural than prior generations. In fact, nearly half identify as Black, Asian, Native American, Islander or Alaskan, a combination of two or more races, or Hispanic. 

And this has a huge impact on shaping who they are, what they value and the expectations they're forming.

(DESCRIPTION)
Text, Diversity. Gen Z is highly diverse across many aspects including: Gender Identity & Expression, Sexual Orientation, Religion, Family Structure, Living Arrangements. Agent tip. Be committed to diversity and inclusion. Make sure that your marketing and communications are inclusive. 

(SPEECH)
But Gen Z is more than just racially and ethnically diverse. They are also diverse across a range of other aspects, including things like gender identity and gender expression, the family structures that they've grown up in or their living arrangements. Quick tip for you here, it will be increasingly important that you are committed to diversity and inclusion. And you can start by ensuring your marketing and your communication materials are inclusive of different populations. But over time, Gen Z will also be looking for agency staff to be more reflective of an increasingly diverse population. 

(DESCRIPTION)
Text, Lifestage Matters. 

(SPEECH)
Now, let's talk about lifestage. We know that certain life events or milestones are associated with insurance activity. Now, when these milestones are hit, it's a very common trigger to shop or reevaluate your coverages or your limits. And what we're seeing with Gen Z in this space is really just a continuation of what we observed with millennials, and that is that traditional milestones are occurring later in life, if at all. 

(DESCRIPTION)
Text, Delayed driver licensing. A line chart is titled, percent with a driver license. 

(SPEECH)
Let me show you a few examples. And we'll start with delayed driver's licensing. We have seen a steep decline in young people obtaining a driver's license. 

In 2020, only a quarter of 16-year-olds had a license, whereas in 1983, it was nearly half. And the trend is similar, as you can see, among 18-year-olds. And even for those in their 20s, we see that they are significantly less likely to have a driver's license today than they would have been in the early '80s.

(DESCRIPTION)
Text, Delayed financial independence. A bar chart is titled, percent Financially Independent at 21 years old with income of 150% plus over poverty level. Two bars are shown for 1980 and 2021 with a drop from 42% to 25%. 

(SPEECH)
We're also seeing delayed financial independence. 

(DESCRIPTION)
Text, Delaying Marriage. A line graph is titled, Median age at first marriage. 

(SPEECH)
Marriage is occurring later in life, with the average age for men and women now over 30 and 28 years old, respectively. 

(DESCRIPTION)
Text, Delaying home ownership. A bar chart is titled, Average age of first time home buyers. 

(SPEECH)
And the average age of first-time homebuyer is well over 30. 

Now, the average did shoot up in 2022, so we'll continue to watch that to see if that year was an anomaly or something that holds. But suffice to say, it's been a trend of increasingly older ages of first-time home buyers.

(DESCRIPTION)
Text, The development of a new life stage may influence how you engage Gen Z customers. 

(SPEECH)
Now, along with these delayed milestones is the development of an entirely new lifestage that may be influencing how you find yourself engaging with Gen Z customers. So prior to the year 2000, the generally agreed upon progression was simply childhood, adolescence, adulthood and seniorhood. 

But in the year 2000, Dr. Jeffrey Arnett-- he's a Researcher and a Professor at Clark University in Massachusetts-- defined and proposed that a new lifestage had developed over the past several decades. And he called it emerging adulthood, and it spans just over a decade from 18 to 29.

(DESCRIPTION)
Text, Emerging Adulthood. Common in industrialized societies. Driven by: Increased college attendance, Delayed entrance to the workforce, Evolving laws and regulations, Macroeconomics, Shifting social norms and values. Defined by some degree of financial, social and or emotional reliance on parents or caregivers. Feels like limbo between adult responsibility, individual autonomy and parental dependency.

(SPEECH)
Emerging adulthood is common in industrialized societies. It is not unique to the United States. And it's driven by several factors, including things like increased college attendance and delayed workforce entry. Evolving laws and regulations also contribute. So think about things like laws around graduated driver's licensing, or child labor laws, or the Affordable Care Act even. 

It's also driven by some element of an economic component and shifting social norms that are making it more acceptable or more OK than it used to be to remain dependent on parents or caregivers into an older age. So it's common in emerging adulthood to have some degree of financial, social or emotional reliance on parents and caregivers. And for Gen Z, this phase of life can sometimes feel sort of like this limbo between adult responsibility, individual autonomy and parental dependency.

(DESCRIPTION)
Text, Agent tips: Be prepared to apply your sales techniques for younger customers to slightly older ones. Don't assume awareness, familiarity or comfort with insurance decision making based on age. Don't be surprised if a customer wants to include a parent/ caregiver in the decision making. 

(SPEECH)
So what does it mean for you? Well, first, we need to recognize that the 26-year-old customer of today, in many ways, is quite different than the 26-year-old customer you may be accustomed to. They probably aren't married. There's a much higher likelihood they're living with parents or caregivers. If they're female, they probably haven't had a child, as the average age of first-time moms is now over 27. So, if you have developed some winning sales tactics that you find work for you with younger customers, be prepared to apply them to slightly older customers. And don't assume awareness or comfort with insurance decision-making based on age. 

I'd also say don't be surprised if parents or other trusted adults start to get more involved in the decision-making than you're used to.

(DESCRIPTION)
Text, Notable Characteristics of the true digital native. 

(SPEECH)
So, we'll move along on our trail, and we will now be talking about the notable characteristics of the true digital native. Understanding these characteristics will help you better attract, engage and retain them. 

(DESCRIPTION)
Text, Notable Characteristics of true Digital Natives. I like to see what you're doing. Show me what you are seeing so we can get there together... Yeah, you can send it to me, but if I'm looking at it in my email, I'm looking at it alone. I want you to go through it with me and show me that this is the best option. Justin, 26, California. 

(SPEECH)
It's important to keep in mind that Gen Z were all born post-internet. As far as they know, it has always been there. It's effectively a utility. To them, the internet is just like electricity and running water. It's everywhere. It's assumed. If they find themselves in a situation without the internet, something terrible must have happened. 

The average age they get their first smartphone is between 11 and 12. And because of this, they are highly visual, video-first communicators. Growing up with social media and cloud technology means that collaboration and cocreation is really part of who they are. Now, I think this quote is worth pausing on. It came from Justin. He participated in some of our research. He's a 26-year-old, out in California. And he said, “I like to see what you're doing. Show me what you're seeing so we can get there together. Yeah, you can send it to me. But if I'm looking at it in my email, I'm looking at it alone. I want you to go through it with me and show me that this is the best option.”

Now, he's talking about an interaction he had with an insurance agent where he was talking about his auto insurance. And I think it's a really great example of how natural and intuitive it is for them to want to be able to see what they're talking about, as well as go through it together. Really speaks to their collaborative nature.

(DESCRIPTION)

Text, I like the ability to schedule a virtual connection to meet with an agent as opposed to having to travel and spend time. Stephanie, 25, New York. Innate use of internet to: Make and nurture relationships. Have social experiences. Learn new skills. Demystify complex topics. Seek out information. 

(SPEECH)
Another notable characteristic is their unique relationship with the internet. Now, because they have this unique relationship with the internet, and it has been a constant in their lives, certain behaviors are more innate for Gen Z. So things like using the internet to make friends and nurture relationships, as well as to have social experiences in digital or virtual settings, come much more naturally to Gen Z. 

They also intuitively use the internet to learn new skills, to demystify complex topics and to seek out information.

(DESCRIPTION)
Text, Agent tips. Face to face meetings don't have to be in person. Make sure you are comfortable with video call capabilities and have an internet connection stable enough to support streaming. Use screen sharing and visual aids. 

(SPEECH)
So let's turn this into some tips for you. First thing you want to keep in mind is that for the digital native, meeting face-to-face doesn't have to be in person. I think COVID taught us all that, but it's particularly true for Gen Z. They are accustomed to building relationships online, and they see it as a really effective and pragmatic way to meet. So if you are going to offer video meetings, which you absolutely should be doing, make sure you're comfortable with the video call capability and that you have an internet connection that's stable enough to connect-- to support streaming. 

It's also important to keep Gen Z's orientation to visual materials in mind. So, things as simple as screen sharing or very simple visual aids can go a long way, right? Remember what Justin told us. It's one thing to send a follow-up email, but it's another to use that visual in real-time conversations as the decisions are being made.

(DESCRIPTION)
Text, Common Gen Z Mindsets. Concern for Future Financial Self, Skepticism as self-preservation, Accustomed to Choice, Authenticity and Individuality. 

(SPEECH)
So in addition to those digital native characteristics that they carry with them, members of Gen Z tend to share some common mindsets. And this is a great place to point out that some of these mindsets are because they're young, and some of these mindsets are because of who they are and the circumstances they're coming of age in. 

Now, for the sake of time, we're going to talk about two of these. And the first one I want to talk about is that Gen Z is quite aware of and anxious about their future financial self. In this regard, they are actually quite different than millennials were at this age. That's an important thing to keep in mind.

(DESCRIPTION)
Text, Concern for Future Financial Self, but also Price Sensitive. Gen Z has grown up keenly aware of, if not personally impacted by, economic challenges. Impacts of 2008 recession, rising college cost, home prices, rent increases, wage inequality, cost of living, lasting COVID impacts, declining average post-college wages, etc. A bar chart titled: Extremely/Very Likely to Switch to Lower Cost Carrier in Next 12 Months Due To Inflation shows Gen Z 32%, millennial 27%, Gen Z 21% and boomer 17%. 

(SPEECH)
Now, the reality is, even if they aren't sitting down with you to watch the 6 o'clock news, they are growing up keenly aware, if not personally impacted by a whole host of personal and macroeconomic challenges. We've got lasting impacts of the 2008 recession. 

And for those of you thinking, gee, wasn't that a while ago? The oldest of them were 11 years old when that happened, and so the lingering impacts of that are very real for them. We see the rising cost of college and falling post-college wages. Home prices and rent are increasing. We've got inflation, lingering COVID impacts, and the list goes on. And because of that, many of them are deeply aware that the decisions they make today could have a meaningful impact on their future financial stability. But at the same time, they're price sensitive. And that's a very common characteristic when you're young.

The data you're seeing here shows you the percent of each generation that tells us they're very likely to switch to a lower-cost carrier as a result of inflation. And it's not hard to see that Gen Z are much more sensitive to the price pressures of inflation than baby boomers are, for example. So it's important to keep in mind that while they are very oriented to setting their future financial self up for success, they are making price-driven decisions today.

(DESCRIPTION)
Text, Accustomed to choice. Several of an identical sweater appear in various shades of green. 

(SPEECH)
Now, I also want to talk about choice. Choice gives the feeling of control, and that's not unique to Gen Z. But having grown up in a world that feels volatile and unpredictable, choice is particularly comforting. 

Gen Z has also grown accustomed to choice as a result of the internet. And there are lots of examples of this, but here's one of my favorite. When my baby boomer mom was a teenager, and she wanted a new green sweater, she hopped on the trolley, and she headed to Wanamaker's in Center City, Philadelphia. And when she got there, she was at the mercy of whatever green sweaters they had, and hopefully they had her size. When my teenage son wants a green sweater, he grabs his phone and he has instant access to nearly limitless options, most of which can be delivered to my doorstep in two days or less, and some of which can be delivered in hours.

Choice is integral to the Gen Z mindset, and it just so happens that it aligns very well with the independent agent model. But the onus is on us to make the connection.

(DESCRIPTION)
Text, Agent Tips: Position insurance as a financial protection tool. Keep price sensitivity in mind. Consider telematics as a tool to control price. Consider showing more options to young customers. 

(SPEECH)
So how can you activate on the Gen Z mindset? First things first, position insurance as a financial protection tool to tap into their desire to set themselves up for future financial success. But keep price sensitivity in mind. Telematics could be a tool to help control price for some of your customers. 

On the choice point, if you're accustomed to making a single recommendation to your customers, I would encourage you to try experimenting with showing more options to your young customers, whether it's carrier choices or something like coverage limits. Choice, alongside your expertise and your recommendation, is a winning combination for Gen Z.

(DESCRIPTION)
Text, Habitat of the digital native.

(SPEECH)
So now that we know what makes them tick, let's shift gears to the habitat of the digital native. 

(DESCRIPTION)
Text, Gen Z exists in both the physical and digital world, regularly moving between them. 

(SPEECH)
Gen Z exists in both the physical and digital world, regularly and routinely moving between them. So we're going to break it apart. And we're going to spend just a moment on their physical habitat first. 

(DESCRIPTION)
Text, Physical Habitat. Two bar charts depict generational ages and the type of areas they live in. 

(SPEECH)
Geographically, Gen Z is most likely to live in the suburbs. And that's followed by a small city. They are the least likely to be living in a rural area. And in fact, only 13% of Gen Z lives in rural America. There was a fascinating analysis that compares generations when they were all the same age. And what we see on the right-hand side of this slide is that when they were the same age, 36% of baby boomers were living in rural areas. So Gen Z are three times less likely to be living in rural America than baby boomers were at the same age. 

(DESCRIPTION)
Two charts appear titled, Gen Z Living Arrangements, and Renting is most common among Gen Z Living on their Own. 

(SPEECH)
More than half of Gen Z live with parents or caregivers, not surprising given their age. But remember, we also have that delayed milestones, emerging adulthood phenomenon where we see young people living with parents and caregivers longer and longer. Now, those who are living on their own are most likely to be renting. Again, not super surprising, they're still fairly young. Now, they do have ambitions to be homeowners, like most young people do. But their pragmatism, their financial situation and market conditions are ultimately going to dictate how their home ownership behaviors play out over the next five to 10 years. 

So understanding where, how and with whom Gen Z is living is a really important part of understanding how they're going to be impacting you and your agency.

(DESCRIPTION)
Text, Agent Tips. Rural agents may feel less impact from Gen Z. Suburban & urban agents will experience the impact sooner. Gen Z may be impacting your current customers, ensure their policies are adequate for situations with more adults and drivers cohabitating. Reconsider renters insurance. 

(SPEECH)
So those of you out there who are in rural areas, you may be feeling less of an impact from Gen Z. And if you're in a suburban or urban area, odds are the impact of Gen Z is coming sooner and a bit more intensely. Now, regardless of geography, don't forget to check in on your current customers. Gen Z are mostly the children of Gen X, right? And if your Gen X customers have Gen Z kids, odds are they're living with them. 

And as emerging adulthood and economic factors persist, that's probably not changing anytime soon. So you want to make sure that those customers you already have have adequate coverage for situations where more adults and more drivers are cohabitating. And finally, I'd say reconsider renters, as it may become an increasingly common insurance product.

(DESCRIPTION)
Text, Digital Habitat. 

(SPEECH)
Shifting gears now to the digital habitat of Gen Z. 

(DESCRIPTION)
Text, the digital habitat of Gen Z is vast. 

(SPEECH)
It is vast. The digital habitat of Gen Z is comprised of multiple platforms and devices, including things like smartphones, online gaming, online video, streaming services, online reviews and social media. 

Now, 90% of Gen Zs spend over an hour a day on social media, and half of them spend more than three hours a day. So let's click into social media and see what's going on there. The first thing you need to know is that Gen Z's social media profile is very different than prior generations. 

(DESCRIPTION)
Text, Gen Z's social media profile is very different than other generations. Four bar charts appear, each one depicting a different generation. 

(SPEECH)
So what you're looking at here is for current and forecasted use of Facebook, Instagram and TikTok. And what you can see is that Facebook is hands-down the leading platform for baby boomers and Gen X. And millennials have nearly universal Facebook usage. It's what we grew up with. But Instagram has closed the gap and is a very close second. 

But Gen Z-- Gen Z are different. As you can see, Instagram and TikTok outpace Facebook, and by a considerable margin. So this is important that we keep in mind. But let's take a look at how agency usage of social media compares. And for the sake of simplifying things, we're going to look at just the 2023 data. So what we're looking at now is that same data by generation on the prior slide, but we brought agency data in on the right-hand side. Heavily into Facebook, we see about three-quarters telling us that they're using Facebook. And that's great. We just saw how prevalent that platform was for millennials, Gen X, and boomer.

(DESCRIPTION)
Text, Agencies' social media profile most closely resembles that of Gen X. 

(SPEECH)
Now, about a third are telling us they're using Instagram. And about 1 in 10 are telling us they're using TikTok. So I'd argue there is some work to do over time. And I'd also argue it's important work because social media is an important source for Gen Z when they're vetting companies that they are going to work with. In fact, they are three times more likely to use social media to vet companies than baby boomers are. So are millennials, and even Gen X are twice as likely than boomers to be using social media to vet companies. Now, this vetting can happen in generally one of two ways. 

(DESCRIPTION)
Text, Social media is an important way Gen Z creates comfort. Gen Z are three times more likely to use social media to vet companies than baby boomers. A set of bar charts are titled, Use of social media to vet companies. 

(SPEECH)
First is going to the company's profile to get a sense for what they're like, kind of getting a little quick vibe check, deciding, is this a company that I could see myself working with? The other would be to use their own social media platforms to get input from others on what they think about a company. Now, if you're an agent or from an agency that feels like they've been largely serving a baby boomer customer base, maybe even traditionalists or the older end of Gen X, and it doesn't feel like your social media presence has been particularly important or really doing all that much for you, maybe you're right. Maybe you're right. 

But based on this data, that is going to change very quickly. Regardless of if you've been using it or not or which platforms you're on, there are some trends in the social media space that we should talk about because they should be shaping how you approach the curation of your social media presence.

(DESCRIPTION)
Text, Social Media Trends influencing what Gen Z will be looking for. TikTok resurrected short-form video. TikTok and Instagram for search. Video vs Text, Enables crowdsourced answer, Post engagement helps assess validity, Comments add context. 

(SPEECH)
First, TikTok resurrected the short-form video that was first made popular by Vines back in 2013. Now, to be fair, social media platforms like Instagram and Facebook have been developing video capabilities for the past decade or so. But it wasn't until TikTok started skyrocketing in popularity around 2018 that these 15- and 30-second micro videos became the preference for young social media users. 

The next interesting trend is the use of Instagram and TikTok for search, instead of Google. And this is according to Google's own analysis. Now, feel however you want to feel about these platforms, but when we remember the notable characteristics of true digital natives, this starts to make a lot of sense. For one, the results on social media are generally going to be video, or at least pictures. And Gen Z is highly visual, video-first group of information consumers. For the next three, tap into their cocreation and collaboration tendencies.

For one, social media allows them to crowdsource an answer. And the amount and nature of engagement on the post helps them to determine the validity. If they go into the comments and they find a lot of disagreement with the original poster, that helps them decide how they're going to interpret what they're reading. Now, those comments-- the comments section is probably one of the most powerful parts of using social media for search. It's where they go to find more detail, to understand others' experiences, to find alternatives or substitutes and to ask additional questions.

So like it or not, Gen Z is using social media to demystify increasingly complex topics, including insurance. Now, I'm not saying we all need to run out and create a TikTok account, but there are some things we can take away from these trends that should be influencing our approach to social media.

(DESCRIPTION)
Text, Agent tips. Maintain your socials! This may be the first impression for a Gen Z customer. Contemplate your engagement over time in digital and virtual spaces. Incorporate short form video into your social media content. Experiment with ways you can foster an active comments section. 

(SPEECH)
So No. 1, maintain your socials. This could very well be the first impression for many of your future customers. Another tip would be to contemplate your engagement over time in various digital and virtual spaces. 

How can your agency engage in those spaces, in those discussions in a way that puts a great light on your agency and that benefits young customers? You should also think about, if you're not, incorporating short-form video into your social media content. Now, over time, as Gen Z becomes more of your customer base, keep in mind that these short-form videos, they're a great way to create authenticity. They're a great way to invite them into your agency and get to know you a bit more. And they don't have to be super polished for them to feel very relevant for Gen Z.

And I'd also say, it's time to start experimenting with how you can foster an active comments section. That will become increasingly important over time.

(DESCRIPTION)
Text, Online reviews are another part of Gen Z's digital habitat. A bar chart is labeled Importance of online reviews. 

(SPEECH)
Online reviews are another really, really important part of Gen Z's digital habitat. We did a study this summer to understand how people think about online reviews. And 80% of Gen Z told us that they are extremely or very important to them. All of the generations agree that they've become more important in the last few years. But in this study, we didn't just want to know, are they important, we wanted to know what it is that makes for a good review. 

So let's take a look at what they tell us. 

(DESCRIPTION)
Text, Gen Z agrees with other generations on what is important. A bar chart is titled, Importance of online review components. 

(SPEECH)
First thing we observe is that there's a lot of generational agreement on what the important components of a review are. And we love that. We love when there's generational agreement. We get more bang for our buck there. So let's look at it. We've got overall score rating. That one is pretty obvious. And then we have things like the quality and the recency of written reviews, as well as companies responding to reviewers. But there was one interesting distinction where Gen Z started to have some different preferences. 

Gen Z wants pictures. 

(DESCRIPTION)
Text, But Gen Z also wants pictures. 

(SPEECH)
They tell us it's important that reviews include pictures. And while that might seem a little less relevant in an insurance agency review at first blush, remember that they're highly visual. And this is a way to create comfort and encourage engagement. This is a group of young people who are accustomed to being able to see the inside of a restaurant, a hotel, a concert venue before they even decide if they're going to go there. So being able to see your agency, to understand what to expect if they were to ever set foot there, to get a sense for what it might be like to work with you, don't underestimate the importance of photographs. 

(DESCRIPTION)
Text, Agent tips. Continuously cultivate online reviews. Remember, it's more than just the score; written reviews and responding to reviewers is important. Don't underestimate the power of pictures.

(SPEECH)
You're also going to want to continue to experiment with ways that you can cultivate those online reviews. Written reviews are very important. So continue to cultivate those. It's an ongoing effort. They need to remain current and contemporary. And again, I'll say it one more time, don't underestimate the power of pictures. They are incredibly valuable to this group. 

(DESCRIPTION)
Text, Insurance Landscape. How is Gen Z feeling about insurance? How prevalent is Gen Z in the I.A. Channel? What are I.A. Channel benefits & barriers? How will you need to serve Gen Z post-sale? 

(SPEECH)
So let's turn our attention very specifically now to the insurance space. And we're going to start with how Gen Z is feeling about insurance. 

(DESCRIPTION)
Text, Gen Z consumers liken the process of getting auto insurance to: Choosing a college. Filing taxes. Buying a car. Health insurance enrollment. All of these come with some uncertainty, some "buyer’s remorse". Did I make a good choice? Am I paying too much? Did I miss something? 

(SPEECH)
It's maybe not a big surprise, but Gen Z generally doesn't feel great about insurance. Now, they tell us that it feels like the college selection process, filing taxes, buying a car and enrolling in health care. And the common thread here is that these all come with some uncertainty and the potential for buyer's remorse. Did I make a good choice? Am I paying too much for what I'm getting? Did I make a mistake or miss something, and I'm only going to find out about it at the worst possible time? 

Well, they do also understand that it is generally required, and it can help protect you. And for some, it feels like one of the first steps into adulthood. But generally speaking, they're approaching it with apprehension and uncertainty. Now, I'd argue, this has to do with their age. So in some regards, you've been here before. You understand how to engage customers who have less insurance experience. And for Gen Z, it's really no different.

So how they’re feeling about agents.

(DESCRIPTION)
Text, Gen Z's feelings about insurance agents. Hashtag it's complicated. 

(SPEECH)
It’s complicated. There are lots of mixed feelings. Now, some of it comes down to if they've actually worked with an agent before or not. So when we look at those five-star feelings, when we look at those pros, what we see is that Gen Z says, agents help me make a better choice than if I did it on my own, that they're knowledgeable, and that they're a place to go to get advice from somebody who really knows the space. 

Cons tend to be from those who haven't had the experience of working with an agent. They see agents as salespeople, and they can't help but wonder what's in it for them. Some young consumers tell us they avoid agents because they don't want to look uninformed, or they're worried that they'll be judged if they ask a dumb question. Now, we've also got some icks we got to talk about. And icks are different than cons. In some regard, cons can be overcome. But icks are deal breakers when they happen, OK?

So the first ick that Gen Z tells us is feeling pressured or rushing the sale. They are not here for it. Another big ick is being treated like a kid. One research participant told us, “If they talk to me like they're my dad, I'm out.” Remember, they're in that limbo, right, of individual autonomy, adult responsibility. But there's some sensitivity because they're still reliant on their parents. So this generation is particularly leery of that dynamic happening in a relationship with an insurance agent.

And the last ick is too much small talk. Now, they don't mind a little bit of get-to-know-you talk. And personality fit is pretty important to them. But small talk for the sake of small talk, especially if it doesn't feel authentic, is a really big turnoff.

(DESCRIPTION)
Text, Gen Z is underpenetrated in the Independent Agent channel. Studies consistently estimate the independent agent channel accounts for 15% to 20% of auto insurance policies among Gen Z. 

(SPEECH)
So we need to align on the fact that Gen Z are underpenetrated in the independent agent channel. Now, every study that you come across is going to give you a slightly different number. Suffice it to say, we've pulled forward together here for you to show you the general trend, that whether it's 15% or 20%, it's persistently below other generations. 

Now, often, the very first question I get here is, OK, but won't they migrate to the IA channel as their needs grow? Maybe. I'd say it's a reasonable hypothesis, but I'd also argue it's not worth betting the agency on. And I say that in part because Gen Z overindexes on direct writers. And as those brands expand their product suites and their offerings, it's another reasonable hypothesis that they'll continue to meet Gen Z's growing needs over time, making it less likely that Gen Z will be compelled to switch as their needs become more complex.

Well, here's the real tragedy in this storyline. I've been studying Gen Z for several years and I honestly believe that Gen Z has the potential to be a very attractive customer.

(DESCRIPTION)
Text, Alignment between Gen Z and I.A. Channel. 

(SPEECH)
As a collective, Gen Z are risk averse. They are not only comforted but accustomed to choice. And they are more financially aware and concerned about their future financial self than prior generations were at this age. Independent agents are trusted advisors that offer choice, that deal in financial protection products. That sounds like a match made in heaven. 

But we do also have the reality that they're underpenetrated and may not find their way to the channel as naturally as we'd like. That means it's on us to be proactive and intentional about bringing them into the channel. So what I want to do next is I want to look at the ways-- what we can learn from the benefits and the barriers to IA channel usage, all through a Gen Z lens. Now, for the sake of comparison, we are going to look at baby boomers and Gen Z. And I promise this is not to perpetuate any sort of generational conflict. Rather, it's just the best representation of what we've experienced versus what we can anticipate.

(DESCRIPTION)
A bar chart appears. Text, Reasons for Purchasing through an Agent, Gen Z vs. Baby Boomer. 

(SPEECH)
So we're looking at the reasons people who bought their auto insurance through an agent tell us they bought through an agent. Now, first things first, there is a lot of similarity. But there are some reasons that are unique to baby boomers and some that are distinctly Gen Z. So while everyone agrees working with an agent helps them to get a great price, that agents are knowledgeable, that one of the benefits is a single point of contact, we do have some nuances that we should talk about. 

So for baby boomers, they're more likely to say they worked with an agent because they prefer a face-to-face interaction and because they have a good relationship with the agent. And that makes a lot of sense. They're much more accustomed to doing business face-to-face in the agent's office. They potentially have been working with you for a long time, and they value that relationship. Gen Z, on the other hand, is more likely to say it gets them personalized coverage, and it's quicker.

And I found that very interesting. I actually kind of love this idea that Gen Z that work with an independent agent say it's quicker. Because I don't know that that's always been the case. I don't know that that's always been the feeling. So I think that that's actually really interesting. Now, again, these aren't the leading reasons, but they are uniquely compelling to Gen Z. But what about those who choose to work with a direct writer? Is there anything we can learn from them? Spoiler alert, yes, there is. Let me show you.

(DESCRIPTION)
Text, Reasons for purchasing direct, Gen Z vs. Baby Boomer. 

(SPEECH)
Now, there's a lot we could unpack here. But what I want to focus on, again, are those uniquely Gen Z reasons on the right-hand side. So, prefer less human interaction. People who go through a direct writer, Gen Zs, they tell us, I do it because I don't want it to be so people-y. All right, fine, how about we promote the digital capabilities that your agency and your carrier partners offer? There's ways to keep this transaction beneficial without so much human interaction. Or they're feeling pressured and intimidated. Now, this one's going to maybe rely a little bit more on word of mouth. 

Because let's be honest, an insurance agent saying, I swear I won't pressure you, just trust me, it's not going to work for Gen Z, it's probably not going to work for anyone. But what you can do is make sure you're creating a low-pressure environment, and then encourage those reviews. Because it's really important to folks to feel comfortable, and they're going to talk about it in reviews. Gen Z is going to go to those reviews to check you out, and they're going to feel really encouraged by that. Another reason is, they don't work with an agent because they don't know the benefits.

Well, we do. I do. You do. We just went through all of the benefits, from Gen Zs themselves. So let's bring those into our communication, and let's bring that into our marketing. And also, could we all promise that we are going to finally dispel the myth that working with an agent costs more or that you have to pay for it? That is a persistent myth. Gen Z is no different. They believe it, too.

(DESCRIPTION)
Text, To build relevance with younger customers consider communications that emphasize the green flags and mitigate the red flags. 

(SPEECH)
So to build relevance and maintain relevance with young customers, we're going to need to consider our communications in a way that they emphasize the green flags and mitigate the red ones. 

Those green flags, again, those include some of the common benefits, things like getting the best price or the best deal, working with a knowledgeable agent, but also some of those uniquely Gen Z reasons, which are helping to get personalized coverage and the efficiency of working with an agent. On the red flag side, we want to mitigate this. We want to talk about how we can kind of take some of the human interaction out of it perhaps. We want to make sure we're creating low-pressure environments, that we're taking our time to answer questions without judgment.

We're also going to dispel some myths and make sure that they're aware of the benefits of working with an agent. So we need to be intentional and proactive in attracting them. But there's one more thing that you need to know. Because once we get them in the door, so to speak, they will be behaving differently post-sale. And that will present both challenge and opportunity.

(DESCRIPTION)
Text, Gen Z's post-sale behaviors represent challenge and opportunity. A bar chart appears with the title, Percent that prefer self-service Gen Z vs. Boomer.

(SPEECH)
Gen Z will be much more self-directed across a range of tasks. So what you're looking at here is baby boomers in gray, again, Gen Z in red, just for the sake of comparison. 

And we're looking at the percent that say they'd prefer to self-service a variety of common insurance tasks. Now, obviously, you're welcome to look very closely at this chart. But even if you just ever so briefly glance at this chart, it’s pretty obvious that Gen Z's preference for self-service across these tasks is staggeringly higher than boomers. Now, I'll say this again. If you're an agent or from an agency who has been largely serving the needs of baby boomer clients, maybe it has felt like they aren't that interested in self-service and digital solutions when you offer them.

Then again, I'd say you're absolutely right in that experience. But there is no denying that changes are coming.

(DESCRIPTION)
Text, Adapting to the self-directed customer. Meet Them Where They're At. Embrace and promote digital and self-serve solutions. Create Digital Relationships. Experiment with tactics that create digital relationships in a world where Gen Z won't be calling as often. Reallocate Newfound Time. Consider how you can reallocate newfound time to high value activities.

(SPEECH)
So let's talk about adapting to the self-directed customer. The first thing you can do is meet them where they're at. We need to embrace and promote digital self-service solutions. And those solutions should be the capabilities your agency offers as well as your carrier partners. We're also going to need to create digital relationships. 

Now, depending on where you're at on your own journey with this, you may need to start experimenting with some tactics or integrating some new ones into what you already do. Because these relationships, these digital-powered relationships will be increasingly important in a world where Gen Z won't be calling as often. Those calls represent an organic touchpoint for you to reinforce your value. And so we're going to need to backfill to kind of make up for some of that with these digital relationships.

Now, on the opportunity side, and hopefully you'll agree with me that this is potentially one of the most exciting and transformational things here. This behavior represents an opportunity to reallocate your time to more high-value activities. So again, they’re a small portion of the book today. But start dreaming those dreams of what you could do with extra time, so that when the time comes, you're ready to activate on it.

(DESCRIPTION)
The Gen Z trail map appears again. Now, a we are here marker appears at stop 7.

(SPEECH)
We've covered a lot of ground. We've made six stops on this trail map. And I'd like to wrap it up at step seven. 

I want to underscore the importance of being intentional and proactive in engaging Gen Z. And a big part of doing that will hinge on creating comfort and building trust.

(DESCRIPTION)
Text, Creating comfort before you even meet. Gen Z Does Their Research. Make sure the information you share is easy to understand and access. If you maintain a website, make sure it's up to date with no broken links. Combat Barriers and Misconceptions. Seek opportunities where you can highlight benefits and combat barriers. Maintain Your Socials. Your social media profile may be the first impression for Gen Z customers. Cultivate Reviews. Online reviews are very important to Gen Z; remember it's more than just the rating. 

(SPEECH)
So first, let's talk about creating comfort with Gen Z before you even meet. So, the first thing here is to recognize that Gen Z does their research. So make sure the information you share is easy to understand and easy to access. If you maintain a website, make sure it's up to date with no broken links, and make sure it's mobile-responsive and renders correctly across different devices. 

We also need to seek out opportunities where we can to continuously combat barriers and address misconceptions while highlighting the benefits of working with an independent agent. I said it once before, but I'm going to say it again. Maintain your socials. This is likely to be the first impression for a lot of Gen Z customers. And cultivate those reviews. This is going to help across multiple generations. But remember, online reviews, incredibly important to Gen Z. And it's more than just the rating.

(DESCRIPTION)
Text, Building trust as you interact. Ask, Listen and Then Tell. Use active listening to understand where they're at before offering your expertise. Use Visuals. When discussing coverages, limits and deductibles, leverage visuals or use screen sharing. Offer Choice & Make it Personal. Highlight customizable features and show options, this creates a sense of control and personalization. Hashtag Local. Many Gen Z customers find comfort in knowing an agent is local, even if they never come to your office. 

(SPEECH)
Now, when you are interacting with Gen Z, there are some things you can do to build trust in that moment. So the first thing you're going to want to do is ask, listen and then tell. Use active listening to understand where they're at in their comfort, in their needs, in their readiness to make a decision before you offer your expertise. Your expertise is still a critical component of this equation, but just give them some space. Also use visuals when you're discussing coverages, limits, deductibles. Leverage visuals and screen sharing. Remember what Justin from California told us. 

Offer choice and make it personal. Highlight customizable features. Show more options than maybe you're used to. Remember, it creates a sense of control, creates a sense of personalization. And finally, lean into being local. Many Gen Z customers actually find it really comforting to know that the agent they're talking to is local, even if they never come into your office. So like I said at the beginning of our time together, I hope you walk away today with a deeper understanding of the Gen Z customer.

I also hope you're taking away a few things you feel like you can immediately put into action, as well as information you can use to inform your longer term, future-ready strategies. So thank you for joining today, and thank you for your attention.

(DESCRIPTION)
The presentation closes, leaving only the speakers. 

(SPEECH)
JESSICA KEARNEY: Jacqui, thank you so much. That was really, really fantastic. We're getting just tremendous feedback in the comments. We've even had some folks saying they're still pulling out your notes from past presentations to refer back to. I took a bunch of notes. I mean, some of the things that stood out to me, obviously, you just did a nice little recap there. But visuals really matter. Comments on your social media really matter. So just take a look at those. The new lifestage research is really fascinating. And even renters potentially accelerating-- renters insurance even potentially accelerating the future with this group. 

So these are all really great insights. So I have a few questions I want to ask you before we jump to audience questions. And we've got a bunch coming in. So first, I think one of the common threads, and certainly even thinking back to the webinar that you did for us last year, is really this common mindset among Gen Z about authenticity, that being really important to them. Can you dig into that maybe a little bit, tease that out for us, and help us understand how that might be coming into play here?

JACQUI HEIDELBERGER: Absolutely. Authenticity is really, really important to Gen Z. It's important to a lot of young people. But here's what's a little bit different about it. And what I find very interesting for Gen Z is they obviously agree it's really important for them to be authentic and be true to themselves, but they also want others to feel comfortable being authentic. This is really a generation of like "the tide rises all ships." I think you can attribute some of that back to their very diverse makeup, the experiences they've had. They're just natural advocates, right?

And so authenticity isn't just for their own feel-goods. They want it for everyone. It also-- I find this interesting; it equates to trustworthiness for Gen Z. If you're being authentic, then you're not hiding anything. So I think what I'd say for agents is be your authentic self and encourage your staff to do the same. It's going to be this very comforting feeling for Gen Z as they start to interact with you and your staff more often.

JESSICA KEARNEY: Yeah, they know what they're getting into, they know what they're getting.

JACQUI HEIDELBERGER: Exactly.

JESSICA KEARNEY: And doing their research at the same time.

JACQUI HEIDELBERGER: Exactly, yeah.

JESSICA KEARNEY: And I guess tying with that is it seems like Gen Z, and this, again, pulls from your last presentation, also comes with, and if this makes sense, a healthy dose of skepticism, right?

JACQUI HEIDELBERGER: Big deal.

JESSICA KEARNEY: So a lack of trust in institutions, maybe even.

JACQUI HEIDELBERGER: Yeah.

JESSICA KEARNEY: So tell us how that plays in, in terms of how it impacts their view of insurance.

JACQUI HEIDELBERGER: Yeah, right. They-- there's an issue with societal trust in general, right? It's been in decline, and it's been challenged. And that's for all of us. But it's different for Gen Z because they're going through it in their formative years. And they're also more connected than any generation before them. And so that's given them access to so much more information to process at this age than really any of us can wrap our heads around. And so it's not that they can't trust or they won't trust, they actually crave trust.

What I think we all need to know is it just can't be assumed. We really need to approach this as if we need to earn and demonstrate trust every time. I think that's the big thing to take away. Just because we've been in business for 150 years or because agencies have been really successful members of their community for a long time, they're going to have to show up earning trust in ways that might feel a little different than they have in the past. But it is there waiting for them. It just needs to be earned, not assumed.

JESSICA KEARNEY: Yeah, that makes sense. One more from me. So you've talked a little bit about communication, and you've given some tips about how to communicate with Gen Z. We've heard in some headlines on the news with this generation claiming email is dead, right? That this generation doesn't use email. So is that true? Is Gen Z not using email? And how does that work in terms of business communication?

JACQUI HEIDELBERGER: Yeah, no. Email is very, very much alive. Very alive. But it's changed. We have more ways to communicate. There's things like texting and other messaging platforms like that have become more popular and pervasive. I think it just means we have to reconsider what email does for us. It's better for follow-up documentation and longer form information. But texting is really good for quick, easy questions, confirmation and stuff like that. So email is still very important. But use it for the right things.

And I think what is also key to this is making sure that whatever you send is mobile-responsive, because odds are Gen Z will be checking it on their smartphone more than any other device. So while it's acceptable for things like attachments or long form, it does need to render correctly on a smartphone. I think that's the important thing. Bad emails that don't render, those are dead.

JESSICA KEARNEY: Yeah, so it's got to look--

JACQUI HEIDELBERGER: So email is still very viable, very important.

JESSICA KEARNEY: It's got to look just as good as your smartphone as it does on your computer, whatever you’re sending out to the world.

JACQUI HEIDELBERGER: Exactly.

JESSICA KEARNEY: OK, great. So pivoting to audience questions, I've just had a ton coming in. I want to kind of batch two together. So we had Stephen Wassen say, "I'm a commercial insurance agent. And can you comment on any differences in the market from kind of what you're describing now?" So anything like-- you mentioned Gen Z is starting to become business owners. How they’re looking at insurance from that. And then I'll just tag on to that, somewhat related, a question coming in about LinkedIn. So we talked about-- which tends to be more of a business networking platform.

JACQUI HEIDELBERGER: Yeah.

JESSICA KEARNEY: Talked a lot about TikTok, and Instagram, and these other things. Can you comment on, one, the commercial side of things with Gen Z and then, two, kind of that business networking platform? Are they on it? Are they using it? What do they think about it?

JACQUI HEIDELBERGER: Yeah, so we're really just starting to turn our attention to Gen Z in the commercial space. And small business owner, we've heard a lot about their entrepreneurial mindset. I think that's very common to attribute to young people, right? When you're young, you want to be your own boss and run your own business. And so we're starting to look into that more closely.

So we haven't quite put together a whole point of view on some of the very specific commercial insurance behaviors. But I think some of the things about choice, trustworthiness, transparency, kind of demystifying, meeting them where they're at with digital capabilities, while the agent still remains really central and important is what I would expect to see a lot of. I think if I can liken it a little bit to what we went through today, even if they're more digitally oriented and self-directed, it doesn't necessarily mean that the agent doesn't play an incredibly important part of that decision.

It's just a matter of showing up a bit differently across a few different platforms. So what I'd say is there's a lot more to come. But those are some of the early things that I would suggest people keep in mind in the small commercial space.

Now, as for LinkedIn, it's a very popular platform. And I do think that Gen Z will be very avid consumers of information, and I think they'll be avid sharers and creators of their own information there. So I think that there's a lot of good things happening in the LinkedIn space. And I don't think that Gen Z is any different in that space. So I think that should stay a very central part of the commercial insurance strategy. I think it's very important.

JESSICA KEARNEY: All right, great. We've gotten a few questions in now, wanting to peek behind the curtain a bit. You shared a little bit of anecdotes and quotes from folks that you had interviewed and talked about. Can you give us a little bit of insights into your methodology behind some of the research that you shared today?

JACQUI HEIDELBERGER: Yeah, you know what, I love that somebody wants to know about the details of the research. So whoever's asking about that, gold star. I love that. This research, as well as the research we shared in our last appearance here, really is the culmination of multiple phases of research. We started studying Gen Z actually in late 2019. And we've taken a lot of approaches, including some you might expect. We've conducted surveys. We've done interviews. We've used digital discussion boards and digital chat platforms to engage with them.

We've also simulated-- for those of them who hadn't had an opportunity to work with an independent agent, we simulated that experience for them. Interviewed them before, observed them during, and then re-interviewed them again. And that methodology, in particular, is what really got me excited about what a tremendous match Gen Z and the independent agent channel are, but also made me realize that the onus really is on us because so many of them just simply weren't aware. So the research was robust.

I think there's at least four or five surveys that went into this. I can't even count the number of qualitative engagements that went into this. And then we also leverage ongoing research that we do here at Travelers, as well as collecting, and interpreting, and synthesizing thought leadership pieces on Gen Z.

JESSICA KEARNEY: That's terrific. I want to pivot a bit to-- we have Brian Taylor asking, "What is the biggest complaint that Gen Z have about insurance, maybe other than price?" So we know that they're price sensitive. But what are the other things? And I know you talked about a few icks as cons. But what really sticks out to you there?

JACQUI HEIDELBERGER: So, it's a good question. And I think what I'd say is, if Brian and others who are curious, if this isn't your first rodeo, what they don't like about it is going to be pretty common to what other people and other young people don't like about it. It's confusing. The language that it is spoken about in is very formal. It's the "legalese" concept. They are so used to being able to self-educate and demystify really complicated things. But it's not that necessarily insurance has gotten any more complicated, it's that their expectations for being able to understand things have gotten higher.

And so I think they're really frustrated at their ability to get it. And so that's where I think an agent, coupled with visuals, coupled with creating comfort before you even meet, can start to go at some of that. I mean, the other elephant in the room, Jessica, that we can't ignore is it's really expensive when you're young. And they're price sensitive, but they're also wanting to be good financial stewards of themselves. And so I think there's a role for agents to play there in helping them understand the trade-offs and how to optimize their choices.

So getting good protection in the face of the cost and in a way they can understand the language, I think, are some of their biggest complaints.

JESSICA KEARNEY: And it's something that we talk about really across the board, no matter what coverage it is or area, but having that trusted advisor role. And it seems like that, really, obviously-- and I know you had a slide that spoke to this-- really speaks to this generation, for sure.

JACQUI HEIDELBERGER: Yeah, absolutely. They are just craving somebody that they can trust to help them make good choices in this space.

JESSICA KEARNEY: Yep, that's terrific. All right, we have Cham Reed from Chambers Bay Insurance, asks, "Gen Z seems to look at influencers as a trustworthy and credible source for advice and direction. What can we take away from that as agents?"

JACQUI HEIDELBERGER: Yeah, OK, I love this question. Gen Z absolutely consumes a ton of content from influencers, right? And we can put aside for a moment how accurate given influencer is. But I think there's a few things agents can do in this space. First, if you haven't, go online, and go to TikTok, and go to Instagram, and familiarize yourself with the discussion about insurance that's happening there. That's going to help you in a couple ways.

One, it's going to help you understand what the mindset might be that Gen Z could be walking into your office with. But you could also find some creators, some content creators that you think are doing it well and that are generating the right kind of engagement. Because I know not all of the engagement online about insurance is all that positive. And it's kind of made some of us want to shy away from it. So go find creators that are generating the right type of engagement about insurance and see what you can learn from them. I mean, you could go so far as sharing that creator's content.

What I'd say there, though, if you're going to do that, reach out to them first. Always credit the original content creator if you're sharing content. That's very important. It's a bad look if you don't, especially for Gen Z, if they catch you doing it. But share their content. Maybe you even find a way that you could partner with influencers in a way that makes sense for you and your agency, and your market, your geography. Or you just learn how they're connecting with their audience on a topic that otherwise isn't so sexy.

I think everyone on this call should at least spend a little bit of time on TikTok, listening to how insurance is being spoken about.

JESSICA KEARNEY: Get out of your comfort zone and--

JACQUI HEIDELBERGER: Yeah.

JESSICA KEARNEY: --try something new, right?

JACQUI HEIDELBERGER: And you don't have to agree with it all. And you're going to cringe, and maybe you're not going to like the way people are talking about it. But it will be very eye-opening and very helpful.

JESSICA KEARNEY: So, this question kind of tags on to what we're talking about now. So Karen Thomas wants to know, "What characteristics or traits of insurance professionals are most important to Gen Zers when purchasing or renewing products?" So, what are they looking for? And I know you had that slide on the green flags. I'm wondering if there's any color or maybe even anecdotes around maybe examples of things that went really well.

JACQUI HEIDELBERGER: Yeah, so what are the characteristics they're looking for in the agent? I mean, personality fit is a really big deal for them. Now, obviously, that's different in every situation, and for every person, and for every possible customer. So that is what it is. I would go back to authenticity. They are comforted by that. I've said it before, when you're being authentic, you're not hiding anything. So that just like brings the energy down and allows them to focus on what they're really there for.

But what I'd say they're looking for is your expertise, and your experience, and your understanding of how to navigate this thing that they just can't seem to understand on their own. Really critical. But coupled with your ability to present them with choice and help them navigate that choice, I think that is a really winning conversation. And I've talked to some agents who are a bit more accustomed to an interaction where they just-- their customer wants them to make the recommendation. And that's trustworthy right there.

Gen Z is just a little bit different. They just want to see a little bit more. They want to have a little control over it. So if you can still be the expert, but present them with choice and help them walk through the thought process of that choice. Winning combination all day long.

JESSICA KEARNEY: I love it, Jacqui. Thank you so much. This has been-- this hour just flew by.

JACQUI HEIDELBERGER: It did.

JESSICA KEARNEY: So many great and I'd say really practical and tangible insights. We are going to drop in the chat, for everyone on the line today, the link to Jacqui's first webinar with us last year. If you're looking for more on this topic, if you're looking for more, last year's was really a foundational look at the generation, which will surely provide additional insights, I think, will be a nice segue from this conversation. So, Jacqui, thank you again. We really appreciate it.

JACQUI HEIDELBERGER: Excellent.

JESSICA KEARNEY: And I'm going to preview what we have coming up. So, thank you again for joining us today. As always, our survey is going to be in the chat. So please let us know what you thought about today's program, about our research that we shared on Gen Z, and of course, any future topics that you'd like to see here on Wednesdays with Woodward. We always read every comment and feedback. And I'd also like to share some of our other upcoming programs that you can join us for.

(DESCRIPTION)
Text, Cyber: Prepare, Prevent, Mitigate, Restore (registered trademark). Travelers Institute (registered trademark), Logo, Travelers. National Cybersecurity Education Tour. September 12, Atlanta, Georgia. September 19, San Ramon, California. October 17, Worcester, Massachusetts. October 20, Kansas City, Missouri. November 7, Bellevue, Washington. November 29, Dallas, Texas. Register: travelers institute dot org. 

(SPEECH)
The Travelers Institute, we are going to be hitting the road, or we actually have been hitting the road but are continuing our National Cybersecurity Education Tour. You can see all the stops that we've had this fall here on screen. And next up, we're going to be in Dallas on November 29. So if you're interested in learning more about cybersecurity hygiene, cybersecurity preparedness for your organization, you can visit us at travelersinstitute.org and register, if you're in the Dallas area, to join us on November 29. 

And in addition, we're going to be continuing this webinar series throughout the end of 2023. We've got two really great programs that are coming up next.

(DESCRIPTION)
Text, Wednesdays with Woodward (registered trademark) Webinar Series. Upcoming Webinars: November 15, Retirement Playbook: Your Guide to Life After Insurance. December 13, Real Estate Market Update with the National Association of Realtors Chief Economist Lawrence Yun. Register: travelers institute dot org. 

(SPEECH)
If you are retirement-curious, looking at the next phase of your career, you won't want to miss next week's show, on November 15. We're going to be talking about the art of living a full and purposeful life, after insurance, when you're ready to retire. And then on December 13, we're going to close out the year. We'll be joined by National Association of Realtors Chief Economist Lawrence Yun, who we also had on last fall for a real estate market update, and help us really unpack everything that's happening both in the residential and commercial real estate markets. 

You can register for these programs, as always, by visiting us at travelersinstitute.org. You can connect with our host, Joan Woodward, on LinkedIn, stay up to date on the latest insights and opportunities. And if you haven't already, as I mentioned, please take a moment to fill out our survey in the chat. Thank you so much again for joining us on this really fascinating conversation on Gen Z. Have a great afternoon.

[AUDIO LOGO]

(DESCRIPTION)
Text, Watch Replays: travelers institute dot org. LinkedIn Connect: Joan Kois Woodward. Take Our Survey: Link in chat. Hashtag Wednesdays with Woodward. Travelers Institute, registered trademark. Logo Travelers. Travelers institute dot org.