The middle-class Asian Gen Z demographic is at an earlier life stage, with many currently in the lower middle-class segment. Nonetheless, they are more ambitious and self-confident compared to Millennials and Gen Y, with a strong desire to move up from middle-class status, says Peak Re in a report.
In a blog on Peak Re’s website, titled “Coming of Age – Emerging Market Gen Z Consumers", Mr Clarence Wong, chief economist at the reinsurer, added, “Furthermore, when asked to self-assess their level of financial literacy, Zoomers are equally likely to consider themselves very knowledgeable or experts in finance, similar to the older and more experienced Gen Y.
“When it comes to insurance awareness, Gen Z consumers are generally less informed about the different types of insurance products, both life & health and property & casualty. Despite this, cybersecurity insurance stands out as an exception, with higher awareness among Gen Z compared to Millennials and Gen X. This could be due to their digital nativity and concerns about online security.”
Gen Z market
Gen Z represents an increasingly significant demographic group in emerging Asia. By 2025, Gen Z is expected to constitute at least a quarter of the population in the Asia-Pacific region. Mr Wong says that understanding the attitudes and behaviours of Gen Z is crucial for insurance practitioners aiming to tap into this burgeoning market.
Various strategies are being employed to engage the Gen Z consumer segment. Some focus on offering unique styles and personalised experiences that cater to Gen Z’s individuality. Others emphasise digital engagement and the use of social media platforms, which are pivotal for reaching Gen Z consumers. Additionally, the importance of sustainability and Diversity & Inclusion is highlighted in driving the consumption behaviours of Gen Z consumers.
Focusing on Gen Z or zoomers, Peak Re made other observations about this group:
Gen Z’s health concerns are varied, with a notable emphasis on mental health issues. While they share concerns about diseases such as cancer, diabetes, and cardiovascular diseases with older generations, mental health disorders like depression and anxiety are more prominent among their worries. This insight highlights the importance of addressing mental health care in insurance products tailored for Gen Z.
This finding is consistent with earlier research showing that Gen Z is more open about discussing mental health issues and more likely to seek help and use mental health services. They are also more inclined to purchase wellness products and services, according to a consumer survey covering China, the US, and the UK. This likely reflects their familiarity with and access to information via digital platforms, which helps reduce stigma and encourage self-diagnosis.
- Family Responsibility and Stress
In emerging Asia, middle-class Gen Z individuals exhibit similar levels of stress as their Gen X and Gen Y peers. They are equally likely to consider themselves the main caregivers for their parents, similar to Millennials and Gen X. While this responsibility is a source of pride, it also contributes to their stress levels. Additionally, they experience significant stress from work and, in particular, social life, more than their older peers.
In Peak Re’s 2024 Emerging Asia Middle Class Consumer Survey, the reinsurer interviewed a total of 7,080 consumers across six key emerging Asian markets, namely, China, India, Indonesia, Malaysia, the Philippines and Vietnam. 72% of the total sample were Millennials. Gen X, aged 44 and above, comprised 14% of the sample, while the remaining 13% were Gen Z consumers, aged 25 to 27.