Digitalization in Insurance: Trends and Consumer Expectations

The financial services sector is witnessing a significant shift towards digitalization, bringing insurance products closer to consumers where they spend most of their time – online. Despite being accustomed to online purchases, three out of five Generation Z individuals have never bought a fully digital insurance policy, according to a national online survey conducted by Allianz-Tiriac. However, around 20% of respondents expressed consideration for such a purchase in the near future.

The survey highlights that consumers expect fast, intuitive digital processes, transparency, and simple, personalized products at affordable costs when buying insurance online. Although 85% of respondents own at least one insurance policy, concerns about understanding product details and the sufficiency of online information deter one in three from making online purchases. Codruta Furtuna, Sales and Distribution Director at Allianz-Tiriac Asigurari, notes that digitalization simplifies access to insurance, enabling the offer of simple products and fast processes online.

Car insurance leads the online insurance purchases, followed by travel and home insurance. In 2024, Allianz-Tiriac recorded a 19% increase in online insurance sales compared to the previous year, with car insurance accounting for over 70% of policies sold. The My Protect life insurance policy, available online, saw significantly higher sales growth.

To facilitate online insurance purchases, customers seek a simple and fast digital process (42.8%), easy access to information (27.5%), simple and affordable products (26.7%), and customization options (16.6%). Nearly 62% of Generation Z respondents believe that the digitalization of insurance processes is crucial and should continue to accelerate across all customer touchpoints.