As Gen Z steps into adulthood, bringing their digital-first mindset to financial responsibilities like insurance, the industry faces a pivotal moment. I had the privilege of sitting down with Simon Glairy, a renowned expert in insurance and Insurtech, with deep expertise in risk management and AI-driven risk assessment. In our conversation, Simon shares his insights on how insurers can adapt to the expectations of younger generations, the critical role of billing in customer satisfaction, and the challenges of modernizing legacy systems. We dive into the nuances of digital engagement, frictionless payments, and the future of insurance billing in a rapidly evolving landscape.
How does Gen Z’s digital upbringing influence their expectations for insurance services?
Gen Z has grown up in a world where everything is at their fingertips—think social media, instant streaming, and one-click shopping. They expect insurance to be just as seamless and mobile-friendly. They’re not used to paper statements or clunky websites; they want apps that let them manage policies, make payments, and get updates in real time. For them, a digital-first experience isn’t a bonus—it’s the baseline. Insurers who don’t meet this standard risk alienating a generation that’s quick to switch providers if their needs aren’t met.
What specific digital experiences do you think have shaped how Gen Z approaches things like insurance billing?
Platforms like Venmo, Amazon, and DoorDash have set the bar incredibly high. Gen Z is accustomed to instant transactions, personalized notifications, and user-friendly interfaces. They’ve been conditioned to expect transparency and convenience, like seeing a breakdown of costs or getting a payment confirmation instantly. These experiences translate directly to how they view insurance billing—they want the same level of ease and control, not a complicated login or a mailed invoice that feels outdated.
What are some of the major challenges insurers face in aligning their billing processes with Gen Z’s expectations?
One of the biggest hurdles is the reliance on legacy systems. Many insurers are still operating on tech that’s decades old, which can’t easily integrate with modern tools like mobile wallets or real-time alerts. There’s also a cultural barrier—some companies don’t see billing as a priority compared to underwriting or claims processing. This mindset creates a disconnect, leaving younger customers frustrated with slow, manual processes that feel out of touch with their digital lives.
How does the billing experience tie into overall customer satisfaction for insurance providers?
Billing isn’t just a transaction; it’s a key touchpoint that shapes how customers perceive a brand. If the process is confusing or cumbersome, it erodes trust and satisfaction. On the flip side, a smooth, transparent billing experience can boost loyalty. Studies, like the recent J.D. Power findings, show that when insurers clearly explain costs and offer easy ways to manage payments, satisfaction scores jump significantly. For Gen Z, a bad billing experience can be a dealbreaker—they’ll take their business elsewhere.
What role do frictionless payment options play in meeting the needs of younger policyholders?
Convenience is everything for Gen Z. They’re used to paying with mobile wallets, peer-to-peer apps, or one-click options. Traditional methods like writing checks—something only a small fraction of them have ever done—feel archaic. Offering modern payment solutions not only makes their lives easier but also reduces missed payments for insurers. It’s a win-win: customers get a hassle-free experience, and insurers improve cash flow and reduce collection efforts.
How can insurers leverage proactive digital communication to enhance the billing experience?
Gen Z thrives on real-time updates. Insurers can use push notifications, texts, or emails to send payment reminders or confirm transactions instantly. This kind of proactive engagement builds a sense of control and trust—think of it like getting a text when your rideshare arrives. It keeps customers in the loop, reduces late payments, and cuts down on the need for aggressive follow-ups. It’s a simple way to strengthen relationships while solving operational headaches.
What steps can insurance leaders take to overcome internal resistance to modernizing billing systems?
It starts with education. Leaders need to show their teams hard data—customer feedback, retention rates, and satisfaction scores—that link billing to loyalty. They should frame it as a strategic priority, not just an IT project. Workshops or case studies from other industries can help build awareness. I’ve seen companies struggle with pushback until they tied billing upgrades to revenue goals. Once teams see the direct impact on the bottom line, resistance often fades.
What is your forecast for the future of insurance billing as digital natives continue to shape the market?
I believe we’re heading toward a fully integrated, mobile-first billing landscape. As Gen Z and future generations drive demand, insurers will adopt more flexible platforms that can handle emerging trends like buy-now-pay-later or even digital currencies. Those who invest in adaptable systems now will stay ahead of the curve. Billing will become less of a chore and more of a value-add, enhancing the entire customer journey. Insurers who lag behind risk losing relevance in a market that’s only getting more competitive.
