The insurance industry is poised for a transformation as younger consumers lead the charge for digital-first experiences.
According to the 2025 Consumer Sentiment Report: Preferences for Insurance in a Digital World, 64% of Digital Natives (those born in 1975 or later) believe insurance should primarily be purchased and managed online. This generational preference for digital interactions signals a critical turning point for insurers.
Digital transactions are already becoming mainstream, with 70% of Digital Natives having completed insurance-related activities online. Notably, even older consumers (Digital Immigrants, born before 1975) who engage digitally report satisfaction comparable to their younger counterparts. While speaking to an agent remains the most common purchasing method, it ranks as the least preferred, especially among younger buyers.
The implications are clear: three in five Digital Natives would switch providers if digital options were unavailable.
Embedded insurance is emerging as a key strategy, allowing brands to seamlessly offer insurance products alongside existing services. The research reveals that 65% of consumers who purchased insurance digitally did so through the same brands they trust for other transactions. The appetite for this approach is growing, with two-thirds of respondents expressing interest in buying insurance directly from familiar brands.
“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.
The impact of digital
Deloitte projects that embedded property and casualty insurance sales will reach $700 billion globally by 2030, driven by innovations in auto and homeowners insurance. As the report suggests, companies that prioritise digital integration can establish themselves as leaders in this arena.
“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,” adds Slavin.
The data confirms that digital is no longer just an option but the future of insurance. For insurers ready to adapt, the path forward is clear: meet consumers where they are—online.