MAPFRE
Madrid 2,55 EUR 0,07 (+2,66 %)
Madrid 2,55 EUR 0,07 (+2,66 %)

INSURANCE | 11.12.2024

No doubt about it: insurance is for young people too

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Feeling protected isn’t just for older adults. As insurance awareness grows, more young people are realizing the value of protecting what matters to them. Still not convinced? We’ve gathered some data that shows insurance isn’t bound by age. It’s all about meeting needs.

While we wouldn’t try to specify an exact age, youth is a precious and exciting time, though not without its risks, often due to inexperience.

In recent years, events like the pandemic and climate-related crises have shown young people the importance of feeling protected.

Insurance culture

This is largely thanks to the growing awareness of insurance, which aims to educate people about risks, prevention, and how to manage them. That’s why we’re working within the industry to help young people understand the importance of insurance as early as possible.

Every day, we face unexpected situations or things beyond our control that can impact our well-being, and insurance provides a safety net for these challenges.

Reaching young people isn’t easy, though, especially since, in their adolescence, they often feel invincible and don’t usually worry about losses or risks due to their limited life experience. Still, despite the challenges, we’re optimistic about the future of insurance among young people.

Revealing data

According to Estamos Seguros, an initiative by the Spanish Union of Insurance Entities (UNESPA) to raise insurance awareness, insurance is present in 95% of households in Spain. However, this drops to 66% in households with people under 30, and begins to rise again after that age, especially for those with children.

Interestingly, while people under 35 make up about 10% of regular car drivers (those listed as the policyholder), that percentage nearly doubles for motorcycle or scooter owners. There are also insurance policies specifically designed for this group. In life insurance, the figures are lower, with only 3.7% of policyholders aged 18 to 30, based on 2022 data.

The 2023 Social Insurance Report, also from UNESPA, shows that out of 12.4 million health insurance policyholders in Spain, nearly 1.5 million are between 21 and 30 years old. It’s clear that health concerns have grown across all age groups, and this type of coverage is increasingly popular among younger generations. The same report also reveals that 40.7% of people aged 20 to 30 have funeral insurance, which represents just over 2 million people in this age group, according to 2022 data.

What are their concerns?

Young people first get involved with insurance when they start owning things or taking part in activities. For example, imagine they’ve just bought the latest smartphone and it gets stolen. With insurance, they can easily deal with this situation.

Over time, their interest in security and protection grows. The information they get, especially through social media, is helping them learn more about insurance.

In addition to insuring their electronics like laptops or tablets, they also use insurance to:

  • Protect bicycles and scooters. If they don’t have a driver’s license for motor vehicles, these often become their main mode of transportation. So, they choose to protect them from theft, accidents, and sometimes get liability coverage.
  • Manage cyber risks. Their heavy use of the internet and social media can expose them to certain risks. While they may not always notice, it’s often their parents who arrange this coverage, and it’s something that’s usually monitored.
  • Protect things like drones, which are getting more advanced — and more expensive. They’re no longer just toys, but valuable items that they want to keep safe.
  • Insure travel and leisure activities: concerts, festivals, airline tickets, hotel bookings… younger generations are more focused on protecting the activities they enjoy.

Tailored offers

It’s unavoidable: young people are selective and like to compare options before making a purchase, seeking companies that offer services and insurance that suit their needs.

That’s why many companies provide policies designed to address their specific concerns. At MAPFRE, we’ve thought about what they need and offer great benefits, like car insurance that covers them even when they’re not driving, plus roadside assistance anywhere.

In addition, Club MAPFRE offers extra perks for younger customers, helping them save money and solve problems with the help of experts and advisors who assist with travel planning, answer medical questions, explain paperwork, and more.

 

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