New Survey Highlights Major Gap In Insurance Understanding Among This Cohort
A recent survey by the National Association of Insurance Commissioners (NAIC) highlights a concerning trend among Gen Z adults: 35% currently pay for a cellphone protection plan, yet only 21% have renters insurance. The findings suggest a significant gap in understanding “…risks and why having the right insurance coverage matters.”
Andrew N. Mais, President of the NAIC and Connecticut Insurance Commissioner, addressed these findings during a satellite media tour broadcast from the University of Connecticut’s Stamford campus in July. In discussing the survey, he noted some revealing results about this age cohort.
Over half of the respondents (54%) feel “overwhelmed or anxious” when thinking about insurance. Specifically, 34% of young adults admitted they are “going to try to wait as long as possible” to obtain life insurance, and 28% said the same about health insurance.
Alarmingly, only 27% of Gen Z adults could correctly identify the term “deductible,” and 29% understood “copay.” While 36% could identify “out of pocket,” only 19% knew the definition of “out of network.” Additionally, the survey found that 22% of Gen Z respondents have little or no awareness of the importance of auto insurance, and 14% are similarly unaware of the importance of health insurance.
“There’s a gap in insurance knowledge among Gen Z adults,” said Mais. “This is a critical time in their lives, as they are laying the groundwork for their financial futures. As an insurance regulator, I know how confusing navigating the world of insurance can be. The good news is you don’t have to figure these things out by yourself. There are independent resources to help consumers of all ages and stages of their lives get answers to insurance questions and ensure there are no gaps in their coverage.”
Mais also highlighted some positive findings from the survey. “Our survey also revealed some encouraging findings about Gen Z. For example, 61% of Gen Z adults surveyed already pay for their own health insurance, while 49% carry automobile coverage. There are several areas where we have a solid base to build on as we ‘Mind the Gap,’ or help close protection gaps and ensure more people have the coverage they need.”
