New data shows that six in ten Gen Z shoppers have discovered products through social media (Capgemini). This generation, raised on seamless digital interaction, now brings the same expectations to every aspect of their lives, including health insurance. For European insurers with over 500 employees and premium volumes exceeding €5 billion, this presents a clear challenge: the old wellness model, built on generic gym discounts, no longer works.
The Engagement Gap: Why Traditional Wellness Fails Gen Z
Traditional wellness programs are struggling, with participation rates as low as 23% across Europe (McKinsey). The reason is simple: they don't align with the values of younger members. Gen Z doesn't just want a discount; they expect an experience. With 76% of consumers getting frustrated when they don’t receive personalization (Fresh Relevance), a one-size-fits-all approach is guaranteed to fail.
This generation values authenticity, community, and immediate value. They are 1.6 times more likely to prefer digital channels for engagement than older generations (Salesforce) and expect their providers to understand them as individuals. A generic program that fails to offer choice or a connection to their local community feels impersonal and outdated.
The Solution: Building Local Health Networks
The most effective way to engage younger insured members is to build a health network that feels both digitally advanced and locally connected. Instead of offering isolated perks, the new model creates a practical network of health partners—from yoga studios and fitness centers to healthy cafes and mental wellness providers.
This approach transforms health promotion from a passive benefit into an active, engaging part of a member's lifestyle. It's a strategy that aligns perfectly with the core principles of successful loyalty programs outlined by expert Philip Shelper in his book 'Loyalty Programs': to be effective, rewards must be valuable, stimulating, and create an emotional connection. A local health network achieves all three by offering real savings on services members genuinely want, in places they already visit.
From Internal Success to a Market-Ready Blueprint
How can a large insurer implement such a system without a massive, resource-intensive IT project? The key is to leverage proven, quickly deployable technology. A Swiss health-fintech has demonstrated this with a major insurer, building a digital coin system that connects members with over 1,100 local health partners. This model proves that creating a valuable health network doesn't require reinventing the wheel.
By starting with an internal pilot program, insurers can de-risk the innovation, gather valuable first-party data, and perfect the model before a full-scale customer launch. When your own employees become ambassadors for the program, you have an authentic success story ready for the market.
For European insurers, the path is clear. To win the loyalty of Gen Z, you must move beyond processing claims and become a proactive partner in their wellness journey. Building a digital health network is the most practical way to start.
To see what a successful, large-scale health network looks like in practice, the CSS Coin Case Study on our website offers valuable insights.
