4 Ways Gen Z are Transforming the Insurance Industry and How to Attract Them

The latest generation currently making its mark in the workplace is Gen Z – those born between the late 1990s and 2010.  

As recruitment partners to the insurance industry, we’ve witnessed firsthand the hesitation many employers have about this new group of professionals. There is often scepticism surrounding their dependence on smartphones, social media habits, and insistence on work-life balance at a time when others might prioritise hard work. But the truth is, these assumptions sell Gen Z short, especially when considering their potential in the insurance industry. 

 

How Gen Z’s Purpose-Driven Mindset and Tech Savviness are Redefining Insurance Practices and Enhancing Customer Engagement 

 From being digital natives to being motivated by meaningful work, Gen Z brings a unique set of strengths and perspectives that can benefit insurance businesses immensely. In an industry struggling with digital transformation, skills shortages, and evolving customer expectations, the capabilities of Gen Z might be just what helps to drive the insurance industry forward. 

Let’s explore some key advantages they bring to the table: 

 

Purpose-Driven and Motivated 

One of the defining traits of Gen Z is their strong sense of purpose. They seek more than just a paycheck – they want work that aligns with their values and makes a difference. This is refreshing in an industry like insurance, where purpose can easily be tied to helping people in times of need. According to a report by Accenture UK, 62% of Gen Z would choose a positive work environment over a high salary, suggesting that cultivating a strong culture of purpose could be a bigger attraction than financial rewards.  

Below are some strategies companies can use to promote and create a purpose-driven environment that attracts Gen Z candidates: 

  

• Highlight Social Responsibility Initiatives: Promote your company’s involvement in community service, sustainability efforts, and social responsibility projects.  For example, your company might provide paid volunteer leave to its employees. Make sure you promote this in your job ads. 

• Engage in Authentic Communication: Use social media and other platforms to share genuine stories about your company’s mission, values, and employee experiences. Authenticity in your messaging will resonate with Gen Z and promoting this on social media can help to organically attract talent. 

• Encourage Employee Involvement in Decision-Making: Involve employees in discussions about company values and their responsibilities. Allowing them to contribute ideas and solutions can foster a sense of ownership and connection to the company’s purpose. 

  

Digital Natives and Great Ambassadors for Internal Change 

Gen Z barely knows a world without smartphones, social media, or rapid technological advancement. They are digital natives, and where older generations might need time to adjust to new tech, Gen Z thrives in it. This adaptability is particularly beneficial in the insurance industry, which is currently seeing a huge wave of digitalisation.  

From automating claims processes to developing tech-driven platforms, Gen Z professionals can lead these initiatives with ease. Their comfort with technology also means they’re likely to spot efficiencies and share tech-driven solutions that others might miss. 

Graduate Recruitment Consultant for Fuse’s Future Insure graduate program, Sarah Frank, says, “Gen Z’s comfort with technology is unmatched. They’re not just adapting to new tools—they’re taking the lead in spotting and implementing tech-driven solutions that others may overlook.” 

 

Natural Influencers and Marketers 

One of the most unique aspects of Gen Z is how ingrained marketing and influencing are in their daily lives. They’re social media savvy and understand how to build and promote personal and professional brands.  

Gen Z employees are likely to organically share their positive experiences at work with their networks, boosting employer branding without any extra effort. Platforms like TikTok provide an excellent opportunity for this, as seen with Butter Travel Insurance’s @joshfrommarketing, who went viral by showcasing his workplace in a fun. For the insurance industry where, quite frankly, people may find it a dry or uninteresting, this kind of content makes insurance more relatable. Fun content humanises the brand and reaches a younger, tech-savvy audience.  

Gen Z employees, with their natural content creation skills, can become invaluable ambassadors, helping your company stand out on platforms that are untouched by your competitors. 

  

Champions of Diversity, Equity, and Inclusion (DEI) 

Diversity, equity, and inclusion have become a focal point for many industries, including insurance. Gen Z enters the workforce with a strong understanding of DEI, often demanding it from their employers.  

With that in mind, insurance businesses should promote the fact that the industry is proactive in being a diverse, equitable and inclusive industry. According to a 2024 report by the Insurance Council of Australia, over 40% of women in the industry are in leadership positions. It also stated that the percentage of those who identify as gay or lesbian, and percentage of people with disability in the industry’s workforce are greater than that of the wider workforce. 

Gen Z’s passion for creating inclusive environments can help foster collaboration, creativity, and better decision-making. In an industry like insurance, where the customer base is so diverse, this can lead to better alignment with customer needs and improved business outcomes. 

 

Why the Insurance Industry Needs Graduate Talent 

Graduates are particularly valuable in addressing skills gaps within the insurance sector. As we’ve hired graduate talent through our Future Insure Graduate Program, we’ve found that grads enter the workforce with fresh ideas, advanced tech skills, and a readiness to learn. In an industry that is continually evolving its digital landscape, they are well-equipped to drive the adoption and integration of new technologies. 

As the industry increases it use of automation and other technology, graduates in fields like IT, marketing, and software development are crucial to business success. Their ability to streamline processes, implement new tech, and deliver innovative customer experiences will be key as the insurance landscape evolves.  

To help you attract graduate talent and make the most of the benefits I’ve discussed, I’ll explore the common challenges of hiring grads and how to overcome them below. 

 

Overcoming the Challenges of Hiring Graduates 

Responding to graduates’ lack of experience and training 

While there are clear benefits to hiring graduates, concerns around training and lack of industry knowledge often arise. This can be an opportunity. Employers can shape their graduates from day one, training them to fit the team’s preferred working style and equipping them with the technical knowledge they need.  

Fuse’s Future Insure Graduate Program is designed to introduce young professionals to the insurance industry, which is often overlooked and lacks natural entry pathways for graduates. The program helps insurance businesses implement structured plans to recruit and train graduates, offering them meaningful growth opportunities that rival those of larger corporate graduate programs. 

By leveraging established networks with local universities, we ensure a steady pipeline of talented young professionals. Our program’s success is highlighted by an 80% retention rate, showing that graduates are not only joining but staying with their employers long-term. Since launching five years ago, we’ve placed over 250 graduates in meaningful roles within the insurance industry, helping to shape the future of the sector. 

 

Gen Z bring their own retention challenges – here’s how to tackle them 

As grads step into the workforce and explore their passions, they are more likely to explore different opportunities early in their careers. Without a clear retention strategy, companies risk losing them to other employers or industries.  

According to SEEK’s Laws of Attraction Data Lab which surveys Australian job seekers to find their key motivators, work-life balance, working in a team, and respectful management are among the top four factors that attract Gen Z to apply for jobs. Below are effective retention strategies that incorporate the factors that Gen Z care about most:  

• Foster a Positive Workplace Culture: Build a supportive and inclusive work environment by encouraging open communication and fostering relationships within teams. Managers can do this by hosting regular team meetings to discuss the company’s decisions and goals, implementing open-door policies, and encouraging teamwork across departments where it is possible. 

• Provide Regular Feedback and Recognition: Make sure to recognise Gen Z employees’ achievements, both big and small. Managers can do this through regular check-ins and providing praise when giving feedback. 

• Implement Flexible Work Arrangements: Offering flexible work options, like remote work or flexible hours, aligns with many graduates’ desires for work-life balance. This flexibility can improve job satisfaction and increase retention, especially as graduates seek employers who understand modern work needs. 

• Offer Competitive Benefits: Benefits can play a huge role in retention, especially when they help Gen Z achieve more work-life balance. Offering perks like wellness programs, paid time off and parental leave can help your employees find a greater balance between work and their personal lives. 

  

Gen Z is not a ‘bratty and entitled’ generation entering the workforce – they’re an opportunity to evolve the way we work. As digital natives, purpose-driven individuals, and champions of inclusivity, they bring valuable skills and fresh perspectives to the insurance industry that have never been seen before.  

By embracing their strengths and investing in their growth, insurance companies can not only address current skills shortages but also secure the future of their businesses in an increasingly digital world. 

Whether you’re looking to fill skills gaps or drive innovation, starting with Gen Z could be your key to getting ahead of the competition. Contact me today on 0417 611 832 or mmartin@fuserecruitment.com and let’s talk about attracting the next generation of insurance leaders into your business.