New research from Sure reveals striking digital divide of insurance preferences between younger and older consumers

64% of Digital Natives believe insurance should be overwhelmingly purchased and managed online in today's digital world

LOS ANGELES, Jan. 14, 2025 /PRNewswire/ -- Sure, the insurance technology leader that unlocks the potential of digital insurance, today released new research, revealing a clear preference for digital insurance experiences among younger consumers. According to Sure's new 2025 Consumer Sentiment Report: Preferences for Insurance in a Digital World, 64% of Digital Natives believe insurance should be overwhelmingly purchased and managed online in today's digital world. As Digital Natives (born in 1975 or after) overtake Digital Immigrants (born in 1974 or before) as the majority of U.S. consumers over the coming decade, this report clearly shows that their preferences should push the insurance industry to evolve towards digital-first experiences.

"As it currently stands, only a small fraction of insurance transactions are truly online – they still involve a human at some step. To draw a comparison, this puts us at a similar point in time with the emergence of credit cards, when prior to that innovation, almost all transactions occurred via cash or checks," said Wayne Slavin, co-founder and CEO of Sure. "Older consumers have been comfortable with the status quo, so the industry has remained stuck in the past as the rest of our purchasing experiences moved online. Now, younger consumers are coming of age and calling for change – and as our research shows they want digital. Just as credit cards led to a huge shift in payments, Sure is leading a huge shift in insurance by enabling digital insurance experiences on our technology rails."

The future is clear — and it's digital

While insurance has been agent-led for decades, Sure's new research underscores just how much the future of insurance will depend on the industry evolving to digital-first experiences to satisfy changing consumer preferences. In fact, the future is already here, as at least half of all respondents indicated that they had already engaged in a digital insurance transaction, with 70% of Digital Natives leading the way. Despite speaking to an agent being the most widely used insurance purchasing experience, it is the least preferred across all respondents. Digital Natives were twice more likely to say that they prefer to purchase insurance digitally instead of spending time speaking to an agent.

Interestingly, satisfaction with digital isn't limited to younger consumers, even though the experience of digital is more intuitive for them. Despite older consumers preferring to speak to an agent, as they've always done, Digital Immigrants who have engaged in digital insurance transactions have reported an equally positive experience as Digital Natives. Digital Natives don't just prefer digital – it would be a key factor in their decision to switch providers, as three out of five said they would switch if their current provider didn't offer digital insurance experiences. This presents a giant opportunity for those in the insurance industry who are willing to be the first movers as this market shifts.

Skate to where the puck is going

There is a huge first mover advantage in a rapidly changing insurance landscape for consumer brands by embedded insurance alongside their existing products and services. According to Deloitte, sales of embedded property and casualty insurance will reach $700 billion globally by 2030. Deloitte is particularly bullish on the growth of embedded auto and homeowners insurance programs that would bypass insurance agents and upend direct-co-consumers sales from carriers. Sure's new research demonstrates this shift is already underway, with 65% of all respondents who have purchased insurance digitally doing so via the consumer brand they made the purchase with.

Brands are best at owning the customer relationship, and they work hard to build the loyalty required to serve as trusted entry points to new and different products – including digital insurance. Just as consumer brands such as airlines, hotels, and retailers began offering co-branded credit cards to consumers, Sure's research shows there is a golden opportunity for consumer brands to offer embedded insurance. In fact, two-thirds of all respondents believe there should be more options to purchase insurance directly from the brands they trust. Sure's network of carriers who have put their insurance products on Sure's technology rails are already doing so to enable insurance distribution for brands.

Sure's research shows that carriers have the remarkable opportunity to make a radical shift that redefines the industry. The data is clear about which direction the future of insurance is headed. While older consumers have traditionally purchased insurance in a way that required human interaction, younger consumers are just beginning to research and purchase insurance for the first time, and their preferences are clear – digital is the future of insurance. It's important for the insurance industry to skate to where the puck is going and embrace its digital future.

Sure's 2025 Consumer Sentiment Report: Benchmarking Preferences for Insurance in a Digital World is available here.

Methodology

To better understand perceptions of the insurance industry as well as measure sentiment around purchasing insurance digitally, Sure partnered with Morning Consult to conduct a survey among U.S. adults. In total, Sure surveyed 2,127 individuals across age, race, geography, insurance type, and much more to find out how American consumers feel about their current insurance options and where the most opportunity lies to better serve them – digitally. Where appropriate, Sure dove deeper into the preferences separating Digital Natives (born 1974-2006) from Digital Immigrants (born 1946-1974).

About Sure
Sure is the global insurance technology leader that unlocks the potential of digital insurance. Global brands and market-leading insurance carriers from the Fortune 500 build and launch sophisticated embedded insurance products on Sure's SaaS infrastructure to distribute, service, and scale digital insurance. Sure's insurance expertise combined with its technology increases revenue streams and accelerates market growth while revolutionizing the customer experience. Visit sureapp.com and follow us on LinkedIn and X.

Contact:

Jess Hair
Senior Manager, Communications
[email protected]

SOURCE Sure