Mortgage & Protection Blog

  • Home /
  • Mortgage & Protection Blog

Why Gen Z could be the perfect match for protection

Sophie Chapman

Guest Blog Writer: Sophie Chapman, Senior Marketing & Brand Executive, at Cirencester Friendly

1 October 2024
Think back to 1997. It was a year of huge optimism and change. Tony Blair’s New Labour won a landslide general election victory ending 18 years of conservative governments. The UK economy was beginning to show signs of recovery following the recession in the early 90s. British music and films were on the rise. “Things will only get better” was the perfect anthem to describe the mood in the country.

Anyone born in 1997 became the first members of Gen Z, the youngest generation in today’s workforce. While they came into the world at a time of hope, by the time they began their careers, it had become a much more uncertain, insecure place.

Their thoughts and feelings have been shaped by major events such as Brexit and Covid. They have witnessed the middle east descend into turmoil, conflict in Ukraine and climate change beginning to seriously affect communities around the world. Only a quarter expect to see positive change in the country over the next year1.

This is the generation that is concerned about the environment, mental health and the society they live in. While they want to make a positive change, there is only so much they can do at an individual level. It is easy to feel overwhelmed and out of control.

Given the environment they’ve grown up in, it is perhaps no surprise that Gen Z see the benefits in the security and certainty that protection products can provide more than older generations. The AMI Viewpoint survey 2023 - The Perception Gap, found that 78% of Gen Z respondents think it’s important to have protection compared to 66% of Gen X (those aged 42 to 58 years old) and just 58% of Boomers (those aged over 59 years old). 

It is not the world around them that is driving the interest in protection. This is the generation that is finding it harder than ever to get on to the housing ladder. In 1997, the average age of a first-time buyer was 262. The average cost of a first home was £59,5873. With an average yearly salary of £16,7114, owning a property was a realistic aim for many. 

Today, the picture is very different. The average age of a first-time buyer has risen to 345. To get their property, they need, on average, a mortgage of over £200,0006 and an average deposit of £62,4707. They are required to do this when the average salary is only £34,9638. It is little wonder that most in this generation feel owning their home is a distant dream and rent their homes.

With rents rising by more than 8% in the year to August 20249, four times the current rate of inflation, many are feeling the squeeze. More than half in Gen Z live pay cheque to pay cheque10, leaving no buffer if they were unable to work through illness or injury. Recent research by MetLife shows that 86% of renters were unsure about how they could afford their rent if they couldn’t work for three months or more. To find more security, it is easy to see how protection can be attractive to Gen Z.

Armed with this knowledge, it is up to providers to find an effective way to reach this generation and provide affordable, attractive options. This is the first digital native generation, they have grown up with the internet, smartphones and an expectation to get anything they want in just a few clicks. The industry needs to understand how young people consume media, the language they use and what they want from protection. Time spent doing this will ensure Gen Z can get the protection they need.

1Deloitte Global 2024 Gen Z and Millennial Survey
2First-time buyer average age rises eight years since 2007 (mortgagesolutions.co.uk)
3History of house prices in Britain | SunLife
4UK full-time weekly salary 2023 | Statista
5UK First-Time Buyer Statistics 2024 | Uswitch
6UK First-Time Buyer Statistics 2024 | Uswitch
7First time home buyers: How much can I borrow? - BBC News
8What is the average salary by age in London and the rest of the UK in 2024? - Times Money Mentor (thetimes.com)
9UK rental prices rise four times higher than inflation (yahoo.com)

10Deloitte Global 2024 Gen Z and Millennial Survey

28 November 2024

Suppressing landlord activity won’t automatically improve first-time buyer prospects


25 November 2024

The Co-operative Bank for Intermediaries, streamlining processes and expanding product ranges


21 November 2024

Better off dead? The need for critical illness cover


18 November 2024

What the OBR’s five year forecasts mean for the market


25 October 2024

Advisers should rethink their regulatory status to keep up with sector changes


16 October 2024

Your Business Matters


7 October 2024

What may impact BTL and Resi markets in 2025?


1 October 2024

Why Gen Z could be the perfect match for protection


30 September 2024

Self-employed mortgages can be easy, if you choose the right lender


26 September 2024

Lenders and regulators must be careful not to add to adviser disillusion


19 September 2024

There may be trouble ahead…


2 September 2024

Source Go: The Modern Answer to the GI Question


29 August 2024

Pre- and post-mini Budget remortgagors need guidance in transformed market


23 August 2024

Guardian's 2023 claims report: a milestone worth celebrating


14 August 2024

Rate cuts are a positive story for advisers


1 August 2024

The mortgage market is set for a teeming H2


29 July 2024

Aldermore are backing more of your clients to go for it


22 July 2024

YOU SAID, WE DID!


12 July 2024

A surge of optimism for the market


3 July 2024

Consumer Duty one year on – what might happen next?


24 June 2024

How to increase your protection business


17 June 2024

Consumer Duty will mark new era of continuously changing advice


6 June 2024

Mental Health Matters: Workplace Wellbeing


21 May 2024

Advise or refer? Ensuring the best possible outcomes for your clients


15 May 2024

Darlington Criteria Updates


14 May 2024

And The Wait Goes On


10 May 2024

Cap on broker fees sparks industry debate


1 May 2024

Expect the unexpected


15 April 2024

Ready, set, remortgage!


12 April 2024

How the mortgage market is failing new arrivals to the UK


11 April 2024

A compliance refresh will lighten unavoidable market stress


4 April 2024

What is driving the Specialist Residential and Buy-to-Let markets this year?


4 April 2024

A Government that prioritises owner occupiers at the expense of the PRS


28 March 2024

What is your website for?


19 March 2024

Exploring the value of value added benefits


4 March 2024

Artificial intelligence – friend or foe to advisers?


9 February 2024

Trust your own gut when listening to market predictions


8 January 2024

The Name's Bond...


21 December 2023

PTs remain a big part of the marketplace


21 December 2023

Not all wine and roses but outlook is better


15 December 2023

Artificial Intelligence: A vision for the future


12 December 2023

Reflecting on 2023


11 December 2023

Mental Health Matters: Menopause


8 December 2023

Looking ahead: Reasons to be cheerful about the market in 2023


17 November 2023

Why TikTok could be a winning tactic for brokers


30 October 2023

How advisers can improve the quality metrics with insurers


27 October 2023

The Aggregator Market - Friend or Foe?


25 October 2023

Don’t let Charter support remove advice from the mortgage process


3 October 2023

How to strengthen your defences against cyber threats


29 September 2023

White Dragon Communications


8 September 2023

Advisers deserve recognition for keeping borrowers on lender books


8 September 2023

Claims history of an insurance should form core part of assessing true value of insurance and advic


4 August 2023

The blasé attitude towards sudden mortgage withdrawals is not good enough


10 July 2023

The argument for higher proc fees for better quality business is undeniable


22 June 2023

Product withdrawal timescales and how brokers can adapt


1 June 2023

We're not in mini-Budget territory yet!


24 May 2023

Skipton’s 100 per cent mortgage should be replicated, not feared


30 April 2023

Protection And Mortgage Fair Value Assessments – What Is My Actual Responsibility?


6 April 2023

Lenders will compete on mortgage rates, but don’t expect a price war


27 March 2023

Vulnerable Customers and Economic Abuse


10 March 2023

Tell borrowers to stop waiting for mortgage rates to fall


7 March 2023

Mixed messages from Bank of England boss ahead of MPC meeting


6 March 2023

Take the Consumer Duty seriously when it comes to protection


17 February 2023

Mortgage Market Update


10 February 2023

Let’s not be hasty and write off this year’s property purchase appetite


6 February 2023

Implementing Consumer Duty


9 January 2023

Why it’s so important you tell us about your vulnerable customers


5 January 2023

Why advisers are so vital in the mortgage market


Paradigm

THIS SITE IS FOR PROFESSIONAL INTERMEDIARY USE ONLY AND NOT FOR USE BY THE GENERAL PUBLIC.

APCC MemberConsumer Duty Alliance

Paradigm Consulting is a Member of the Association of Professional Compliance Consultants and also the Consumer Duty Alliance.

Paradigm Consulting is a trading name of Paradigm Partners Ltd
Office address: Paradigm Partners Ltd, Paradigm House, Brooke Court, Wilmslow, Cheshire, SK9 3ND
Paradigm Partners Ltd is registered in England and Wales. No.09902499. Registered Office: As above

Paradigm Mortgage Services LLP
Office address: 1310 Solihull Parkway, Birmingham Business Park, Birmingham B37 7YB
Registered in England and Wales. Company No: OC323403. Registered Office: Paradigm House, Brooke Court, Lower Meadow Road, Wilmslow, SK9 3ND
Paradigm Mortgage Services LLP is a Limited Liability Partnership.

Paradigm Protect is a trading name of Paradigm Mortgage Services LLP
Office address: 1310 Solihull Parkway, Birmingham Business Park, Birmingham B37 7YB
Paradigm Mortgage Services LLP is registered in England and Wales. Company No: OC323403. Registered Office: Paradigm House, Brooke Court, Lower Meadow Road, Wilmslow, SK9 3ND
Paradigm Mortgage Services LLP is a Limited Liability Partnership.