Ignore Gen Z At Your Own Peril

David Stillman has been building bridges over the generation gap long enough to have had a whole new generation grow up to connect with: Gen Z.

But the author, speaker and consultant has also grown a secret weapon — a Gen Z son, Jonah, who is helping in the good fight.

Together they speak to audiences about this newest generational mystery. They wrote the book, Gen Z @ Work, to explore the new territory represented by those born between 1995 and 2012. The Stillmans have taken their show on the road, speaking to insurance and financial organizations among many others.

But you might be thinking, “Doesn’t every generation go through the same stages and present the same challenges?” To a certain extent, you would be correct. But each generation is shaped differently.

Not only do they represent a new crop of consumers and workers but they also bring unique gifts to the rest of us.

In this interview with InsuranceNewsNet Publisher Paul Feldman, David and Jonah Stillman reveal what those gifts are and why you should not be so quick to write them off as too young to be insurance prospects.

FELDMAN: David, you have been consulting with insurance and financial service companies since the ’90s. What are you seeing now with insurance and Gen Z and how does it compare with earlier generations?

Z kids when it comes to researching not only products but definitely even service providers.

Going back to the ’90s it was all about Gen Xers and how they were going to assimilate with the baby boomers. I did a national tour for State Farm then.

Then when the millennials came of age, it was what do we do to capture millennials? Insurance is like banking — it’s one of those industries that have to deal with new generations as employees and the customers.

FELDMAN: What is the biggest disconnect between the insurance industry and Gen Z?

JONAH: I think the biggest problem from the workplace standpoint that the insurance industry faces with Gen Z is there's a massive unawareness about what the careers are, what career options are in the insurance space.

For example, one thing that we know that’s changing drastically with Gen Z is that over 60% of Gen Z are going to college with a predetermined career in mind. It’s no longer about going to discover yourself. They're going with an idea that “I want to work in real estate or I want to work in advertising.”

The insurance space, which a lot of other industries are doing as well, is not career options or career fairs.

FELDMAN: How can the industry be more effective at recruiting younger people?

DAVID: If you look at insurance, I'm not sure that generation realizes everything that there is to know. I think they just picture someone sitting at a desk making cold calls all day.

Yet the value part of this is lined up very well at Gen Z. Gen Z is extremely entrepreneurial and really does want to own their own business. In a lot of ways a book of business with an insurer is very entrepreneurial. It’s more than just cold calling and solving problems.

It’s helping make sure people get the right coverage. It’s strategic. Those are not the value propositions that I think the insurance industry has done a good job of putting out there.

I think we have a lot of long-term professionals who just assume that anyone new would know what's involved in the career. Step one, as Jonah said, is getting on the radar, which is truly describing what a career in insurance looks like.

FELDMAN: Yes, I couldn’t agree with you more. The industry is not getting that message out very well.

DAVID: We know that other industries like the automotive industry hold huge career fairs for high schoolers looking at

The bond between Gen X and Gen Z is really tight, and 31% of Gen Xers say they consult a Gen Z child when making major purchasing decisions.

DAVID: The insurance industry on the whole is battling generational gap styles on a couple of fronts.

One is the workplace, and how we recruit Gen Z to want to work into the industry and see it is a viable exciting career. But then also understanding this generation of potential clients.

A lot of people may think Gen Z is too young for insurance. But they're also having a big influence over their Gen X parents because X’s really trust their Gen

thinking early enough for Gen Z. We are going to college and then we are learning about insurance when it’s too late because we’re already making way towards a degree in a different space.

I think that one thing insurance industry is having to do is figure out new creative strategies and ways to get on the radar of Gen Z earlier and ideally before they go to college. Whether that be sponsored curriculum, research assignment, putting out video content about different careers. But they don't just think “I'm on a showroom floor selling cars.” They’re thinking, “I can go into finance. I could go into service. I could go into leasing.”

Insurance might not even have to reinvent itself, but repackage so that a new generation understands what they do.

FELDMAN: Jonah, what about Gen Z as consumers?

JONAH: One of the seven traits that we identified in the book was hyper-customized. Customization in all aspects of consumerism is massive.

Gen Zers have an expectation for very customized care and communication. If you're an insurance provider, Gen Z is going to have an expectation that if you're going to send a message that says, “Here is what everyone else has been doing; here is the cure, you fit this box perfectly,” Gen Z is going to look for an insurance provider that says, “Hey we understand that you might need a little extra insurance here, you don't need this one.”

Then the idea of digital, Gen Zers don’t care for whether we do so in the physical space or the digital one. Whether I meet with my insurance provider via FaceTime or they want me to come to their office, Gen Z doesn’t see a difference and we’d hope that our provider wouldn’t either.

I would just say the idea of playing into that notion, how can you create digital services that are as prominent as intuitive of those that, of meeting with their provider in person, because Gen Z is living in this digital world and we just have an expectation that for every physical element there is a digital equivalent, that is as if that is more efficient.

DAVID: And as far as digital goes, a lot of trends seem to rise up through the ages. I'm seeing myself doing more and more Zoom conferences. My sales reps are doing the same thing. I'm seeing clients at older ages now embracing this.

JONAH: Totally. Gen Z is spreading it up the ladder. We are a powerhouse in that aspect. An employee could have been on the job for 50 years and Gen Z comes in and their first year on the job recognizes a way to streamline a process or how to make something better. And that is naturally what we all do with our technology.

FELDMAN: What are some other trends that you see rising right now?

DAVID: With Gen Z, one of the traits that we talk about is FOMO, the fear of missing out. This is something they need to know something they pull up their phone they swipe to get their up-to-date information constantly.

The whole idea of being fast, fast, fast. Technology can definitely speed things up, but in insurance, we have everything from compliance. There's meeting Gen Z’s expectations on the speed, but we also just have to be careful because it’s an industry that needs to cross T’s and dot I’s.

FELDMAN: What about Gen Z’s influence on their parents?

DAVID: Yes, that’s the other thing. A lot of people might think, “I don't need to get to know Gen Z. I don't really need to worry about them quite yet.” That might be true for them as customers.

They might not be ready to buy insurance, but I wouldn’t underestimate the influence they have over their Gen X parents. The bond between Gen X and Gen

Z is really tight, and 31% of Gen Xers say they consult a Gen Z child when making major purchasing decisions.

Whether that be a home, a car — why would it not be the insurance provider? Why would it not be like these people say I can save 15% or less — “Is that true? Can you look it up for me?”

They really trust their Gen Z kids because they're so resourceful. They're often the ones who might be putting the final choice in front of a Gen X parent.

Hospitality would be one of the first industries to realize that. If you go to Disney’s website, there's a planning engine for kids, because they realized the kid will likely plan the trip, bring it to mum and dad who ultimately OK it and pay for it. That’s why I would really be saying there is a strong reason for the industry to get to know Gen Z today, because they're already influencing the current customer base.

FELDMAN: What are some ways for older agents to connect with younger people?

JONAH: It’s not like trying to relate, trying to be cool. Sure, it’s important to relate, but it’s more about having understanding of who they are. Like understanding that they're going to want hyper-customization.

It’s understanding them as a client, what they need, but more so who they are as a person. How do I get to know you to create that relationship?

Gen Z has an intense focus on authenticity and having their relationship with somebody that they can trust. To me, the No. 1 thing that’s important to focus on, especially in a service-based industry, would be authenticity and creating relationships. That is so important with Gen Z.

DAVID: That’s interesting, too, because this is a business about creating relationships.

JONAH: Another thing is price justification. One of the major influencing factors of Gen Z is that we came of age during the midst of the 2009 recession.

We are extremely price-conscious. We are very aware of money. We are going to be asking a lot of questions about why does it cost this much? How do I save money?

Understand that doesn’t mean we are trying to cut corners or cheat you out of money. But that we are just very aware of what we are spending. We can understand, “Yes, we are a little bit more expensive but here is why.” Because we will pay a premium for a product that

we see of value. Just make sure that we understand pricing.

FELDMAN: David, has any insurance or financial person that you dealt with reached out to Jonah?

DAVID: Sure. Some ask, “Hey can I get an introduction?” Then they meet with Jonah and I think they're all surprised at just the level of sophistication.

Jonah walks into meetings with ideas about where his money should be invested, how insurance should work, term versus whole life. He’s got some ideas and usually the expert or the financial planners can get threatened by that and go, “You can't believe everything you read on the internet.”

That’s just a huge mistake. The smart ones are saying “Wow, I wish more of my customers were as engaged as you are, you’ve done some homework. Let’s look at what you’ve got.”

Respect him for his approach. Those are the ones who are definitely going to win. But the ones that just assumed that I’ll hand over that business and say, “This guy is great,” those are the ones that are in trouble.

FELDMAN: Do you generally see professionals put off by your level of sophistication?

JONAH: Yes, whether it be at a doctor or regardless of the space, they come out with a predetermined notion. They get so threatened because they're the expert and they just want to tell us. When in reality it should be seen as a positive thing.

NEXT MONTH: The Stillmans talk about the differences between generations and how to market to them.