India’s Gen Z has mastered accountmaxxing — stacking SIPs, buying mutual funds and chasing financial freedom. SIPs? Locked in. Mutual funds? Loading. But when it comes to insurance, many are still depending on their parents to handle it. According to a Bajaj Capital report, 51% of Gen Z respondents actively invest through mutual funds and systematic investment plans (SIPs). Yet, many haven’t extended the same financial approach towards insurance, choosing instead to stay covered under their parents’ policies rather than taking out protection of their own. While digital platforms have made financial information widely accessible, the report found that the journey often stops before a purchase is made. Around 29% of Gen Z respondents rely on financial applications for information, while 26% follow influencers for guidance. Yet, despite actively researching financial products, relatively few convert that research into actual purchases.According to the report, the financial foundations of many young investors remain weaker than they appear. Nearly 65% of Gen Z respondents said a single health emergency could push them into financial instability.The remaining 35% believe they are adequately protected through insurance provided by their parents or employers. However, the report said the majority remain under-protected, despite growing investment portfolios that may create the impression of financial security. A major health event, it noted, could significantly disrupt their financial progress.Venkatesh Naidu, CEO of Bajaj Capital Insurance Broking Ltd, stated, “The data tells us something we suspected but now see clearly: India is insuring itself, but not at the velocity or adequacy the risk environment demands. Young people save aggressively but protect cautiously.”He further noted, “Women are financially independent yet dependent on others for insurance decisions. And across all groups, the cost of protection in a real crisis far exceeds what families believe their policies cover.”The report said delaying the purchase of insurance is driven more by a lack of urgency than by resistance to the product itself. Unlike mutual funds, which offer visible returns and create a sense of financial progress, insurance is often viewed as something whose value becomes apparent only when a claim is made.As a result, many young adults postpone buying personal insurance for five to seven years until they perceive a stronger need for it.When asked how they would manage a financial emergency, 24% said they would rely on fixed deposits or savings. Another 14% said they would borrow from family, while 9% would sell investments even if it meant unfavourable returns. A further 6% said they would take loans.“This is not a knowledge crisis. It is a confidence crisis, an autonomy crisis, an advice crisis, and a design crisis. All three are solvable,” Naidu said.The report added that while Gen Z demonstrates a strong understanding of investments, market returns and volatility, the approach changes when it comes to insurance. In this area, decisions are more likely to be influenced by reliance on others and assumptions rather than independent financial planning.
