Insurance Needs to Be as Digital as the Millennials and Gen Zs It Wants as Customers

In an era where digital transformation is reshaping industries across the board, the insurance sector is no exception.

One of the companies with a stake in the game is One Inc, and CEO Ian Drysdale told PYMNTS for the “What’s Next in Payments: How Do You Do Digital?” series about how his company is driving digital engagement and reimagining the insurance experience for both consumers and providers.

“We’ve learned that only 4% of insureds select and check payment preference; 96% choose some form of digital,” Drysdale told PYMNTS, underscoring the penchant for digital solutions in the insurance industry. One Inc’s approach to digital engagement is rooted in data-driven decision-making. Using Microsoft Power BI, the company tracks and analyzes every transaction, gleaning insights into consumer preferences and behavior.

Perhaps most striking is the surge in mobile wallet use.

“Twenty-two percent use mobile wallets,” he said. “We see that skyrocketing.”

This trend signals what Drysdale said he believes is a clear direction for the future of insurance payments and interactions. The modern consumer, shaped by experiences with tech giants like Amazon and Netflix, now expects the same convenience and speed from all services — including insurance.

“Nobody wants to enter a 16-digit card number, five-digit zip, four-digit expiration date, and so on and an address,” Drysdale said.

This push for frictionless experiences is driving One Inc’s strategy. The company is focused on creating a world where insurance interactions are as smooth and effortless as streaming a movie or ordering a product online.

“We’re seeing that people are looking for a frictionless type of experience,” Drysdale said.

Breaking Age Barriers

Contrary to popular belief, the digital revolution in insurance isn’t limited to younger generations. One Inc’s data revealed a surprising trend: Older demographics are embracing digital solutions with enthusiasm.

“We’re seeing that Gen X and baby boomers just love digital,” Drysdale said. “Most PayPal users are over 50 years old. The largest segment is 50 to 64 years old at 29%,” challenging the perception that digital transformation primarily caters to millennials and Generation Z and suggesting a broader, cross-generational shift toward digital preferences in insurance.

One Inc’s strategy for driving digital engagement centers on providing choice and clear communication. When it comes to premium payments, the company employs a proactive approach.

“We send them a text message saying, ‘Hey, it’s time to pay your bill,’” he said. “And that increases throughput by about 20%.”

The company presents consumers with a familiar, user-friendly interface that supports a range of payment options, from Apple Pay and Google Pay to PayPal, Venmo and traditional card types. This variety ensures that consumers can choose the method they’re most comfortable with, fostering trust and encouraging digital adoption. For outbound payments, such as claims, One Inc takes a similar approach. This direct communication style, coupled with a user interface showcasing available payment types, makes the digital claims process more attractive and accessible to consumers.

Becoming the Currency of Insurance

Looking ahead, Drysdale said he envisions One Inc becoming “the currency of insurance.” This goal extends beyond simple premium payments and claims processing. The company is positioning itself to handle a range of insurance-related transactions, from carrier-to-carrier payments to lien-holder payoffs and escrow transactions.

Central to this vision is the concept of account-to-account transactions.

“We believe that all of these are going to be handled on an account-to-account basis, whereby the money moves instantly from the payer to the payee,” Drysdale said.

This instant transfer capability, combined with One Inc’s integration with nearly 50 core systems in the industry, positions the company to provide a unified, efficient payment solution for the entire insurance ecosystem.

“It’s going to be quicker and easier and faster,” Drysdale said, summing up the future of insurance interactions.

He contrasted this streamlined future with the current reality of receiving “pounds of paper in the mail” from insurers, emphasizing that the industry is moving toward a “lighter, more environmentally friendly and faster” model.