Modernizing dental and vision benefits experiences for Gen Z

Digital savviness, a higher cost of living and changing priorities, such as a desire for convenience, flexibility and personalized experiences, have shaped Generation Z’s perspectives on traditional benefits like dental and vision insurance. 

As the first generation to grow up immersed in technology, Gen Z – defined as those born between 1997 and 2012 – gravitates towards online platforms for researching and managing their benefits. The increasing emphasis on individuality, control and inclusivity among this generation is driving a shift toward customized solutions that cater to their individual needs and lifestyles – rather than a one-size-fits-all approach. Along with this, the financial burden of student debt and escalating living costs has led to a growing interest in alternative benefits options that offer greater affordability and accessibility.

Not surprisingly, recent research shows that this newest demographic of workers doesn’t prioritize oral health and eye care coverage as highly as previous generations. Making sure Gen Z understands the importance of these essential benefits requires insurers, producers and employers to rethink how they do business. Here are three strategies for modernizing benefits experiences that will appeal to the youngest members of the workforce:

Emphasize the significance of preventive dental and vision care for total health

Plenty of research has shown that regular dental and vision screenings are important for overall well-being – not just the mouth and the eyes. Problems in the mouth or eyes can be the first signs of underlying systemic issues, like diabetes and heart disease. Likewise, a disease that starts in the mouth or eyes can have significant effects on the body, eventually affecting total health. Preventive oral and eye exams can help detect health problems early, offer better treatment outcomes and lower the risk of serious issues down the road that may be more expensive to treat.

Yet, studies have found that Gen Z may not be aware of or fully understand the role dental and eye care plays in total health. For instance, a Transition Optical survey pointed to an education gap among younger employees about the importance of regular, comprehensive eye exams, and also noticed they are less likely to enroll in or use a vision plan.

On top of that, Gen Z prioritizes wellness and is likely to appreciate the importance of preventive care. They are, however, worried about being able to afford health insurance premiums, deductibles and co-pays. A 2022 survey by HealthCare.com found that around one in four Gen Z adults have skipped rent or mortgage payments due to the burden of medical debt.

These findings suggest that younger workers could significantly benefit from education on the importance of dental and vision coverage for improving well-being, and lowering their health care costs in the long run.

Insurers and producers can be valuable partners for employers in communicating the long-term health and financial benefits of having dental and vision insurance by crafting and using clear and concise messaging. Personalizing the content in a way that speaks to Gen Z directly will make it more engaging and memorable. More specifically, using language they understand and is relevant to their lives, combined with their preferred communication channels, like email and text, will help ensure the messaging resonates with this audience.

Leverage generative AI to deliver more personalized benefits experiences

Tech-driven Gen Z craves a frictionless, personalized digital benefits experience they can manage on their terms. They want mobile apps, virtual consultations, and digital tools and resources that make it easier to understand and navigate the insurance process. Smart technologies like artificial intelligence (AI) are making it possible to meet these needs.

One specific subset of AI, generative AI, is rapidly growing across all industries and presents immense opportunities for transforming benefits experiences. Unlike traditional AI, which relies primarily on existing data and processes, generative AI can create various types of content, including text, imagery and audio, without the need to manually input exact rules. According to research by SalesForce, Gen Z is the most invested in this technology, with 70% reporting that they use generative AI and 58% saying it helps them make informed decisions. 

There are many benefits to using this technology across the insurance and employee benefits space. In particular, it has the potential to make it easier for younger generations to learn about, compare, manage and enroll in dental and vision plans.

AI-powered chatbots offered by insurance companies can empower Gen Z to understand their coverage options by providing out-of-pocket estimates for dental procedures or helping them find an in-network optometrist. Employers that use this technology for tasks, such as recommending plan options during open enrollment and offering 24/7 support for benefits-related questions will likely experience more satisfaction among younger workers. 

Other generative AI tools that offer personalized oral health care recommendations based on a person’s dental history or create tailored vision plans based on a customer’s needs and risks should be considered by insurers and producers. These are just a few examples of how this technology can elevate dental and vision benefits experiences for a generation unlike any other currently in the workforce.

Deep dive into customer data to create flexible benefits solutions

The dental and vision benefits plans designed for baby boomers and Generation X no longer meet the unique preferences and values of younger generations. The demand for flexible benefits is especially pronounced among Gen Z workers. They want to choose their own coverage levels, deductibles, types of services covered and other options that better suit their way of life. 

As dental and vision insurers navigate the future of benefits, the most successful ones will leverage data to create flexible and personalized solutions that cater to changing needs throughout their customers’ lives. These insights can be used to develop new coverage options that appeal to Gen Z, such as plans that include services like cosmetic dentistry procedures or LASIK surgery, and on-demand models that allow them to pay for dental and vision care as they need it. 

Producers and employers working with proactive insurance companies taking advantage of this data will be especially well-suited to help employers choose dental and vision plans that are valuable to the youngest members of their workforce. In turn, employers that offer personalized and purposeful benefits that cover the total health needs of their employees will be more successful in attracting, engaging and retaining members of this cohort. 

A new generation in the workplace brings new expectations, challenges and opportunities. Dental and vision coverage shouldn’t get lost in the mix of other benefits and perks because they are not fully understood or considered essential. The businesses that modernize and evolve their benefits strategies to meet Gen Z’s needs will be better positioned to achieve their goals, now and in the future.