Gen Z and Millennials Quietly Disrupt South Africa’s Insurance Industry

A silent revolution is underway in South Africa’s insurance industry, and it’s being led by Gen Z and Millennials. These digitally native generations are rewriting the rules of engagement, pushing insurers to rethink not only what they offer, but how they deliver it. From online-first onboarding to instant quotes via mobile, the next generation expects insurance that fits into their lifestyle, not the other way around.

Alain Nathan, Divisional Executive: Commercial and Private at GIB, calls this shift transformative.

“Gone are the days of lengthy paperwork and hour-long meetings. Younger clients crave efficiency, transparency, and flexibility—delivered via smartphone,” he says. “They want a hybrid model where they can browse policies online, then finalise via WhatsApp or a quick Teams call.”

The numbers back it up. According to Statista, nearly 46% of health insurance policies in South Africa were purchased online by the end of 2024. It’s a clear sign that digital touchpoints are no longer a ‘nice to have’—they’re the baseline. But this doesn’t mean people want to eliminate human contact altogether. A 2024 Sanlam survey found that 45% of 18–35-year-olds still prefer personal advice when buying life insurance.

Nathan says this dual approach is defining a new kind of client journey.

“They start online, compare prices, do research—but they still want direct conversations to clarify the fine print. The key is to be available on their terms, across channels.”

Beyond the how lies a shift in what they’re insuring. As young professionals and entrepreneurs invest in digital-first businesses and side hustles, demand for cyber insurance, commercial crime cover, and home-office protection is on the rise. Standard Bank’s 2025 Youth Barometer notes that over 40% of new home loan inquiries and 38% of vehicle finance deals are driven by under-35s. Yet, these buyers often stretch thinner budgets—installment-to-income ratios average 16.7% for younger buyers compared to 11.4% for older generations.

“They’re acquiring more assets and need fast, frictionless claims,” Nathan explains. “A delay or a convoluted process can damage trust quickly.”

Insurers are taking notice, investing in AI and automation to streamline onboarding, claims, and education. Mobile-first platforms like Naked Insurance are earning praise for real-time quotes and clear product breakdowns. But access remains an issue in rural areas, where users report difficulty connecting with support or navigating digital platforms.

“Transparency is key,” Nathan adds. “We need to demystify what is covered and where the limitations lie. That’s how we build loyalty in this market.”

As more Gen Z and Millennials enter the insurance workforce, the sector itself is poised to evolve from within. This isn’t just a generational handover—it’s a redefinition of the entire model.

Startups in fintech and insurtech are already responding. From Johannesburg’s innovation corridors to Cape Town’s emerging ecosystem, South African entrepreneurs have a real chance to lead with intuitive platforms built for local users. The challenge, Nathan notes, is ensuring that digital innovation doesn’t widen the existing gap between urban and rural users.

With mobile penetration now at 95% (ICASA, 2025), the infrastructure is in place. What remains is making solutions affordable, intuitive, and inclusive.

For insurers ready to meet this moment, the message is clear: build with empathy, simplify the experience, and let digital do the heavy lifting. The future of insurance in South Africa belongs to the connected generation.