The younger generation is driving change: who’s willing to pay more for ethical use of financial technology?
Two separate ESG studies by the insurtech Zelros and a wealthtech advice platform Connectd prove that the majority of people are willing to pay more for responsible technology, sustainability and diversity. However, there’s a clear generational gap when it comes to prioritising ESG.
InsurTech vendor Zelros conducted a study involving over 1,000 people from the US, Canada, the UK and parts of Europe. The research revealed that 70% of people are willing to pay more for their insurance policies if their insurance company was committed to ESG principles.
There was a slight gender difference in the results. Firstly, men were willing to pay larger sums for responsible use of data and AI (an additional $21-$50+ a month), while women were inclined to pay about $10-$20 more for corporate sustainability. Besides, 30.3% of women reported that they were not willing to pay more, versus 26.3% of men.
When it comes to age categories, there’s a clear generational gap in the willingness to pay more to ESG-committed insurance companies. Namely, 45.5% of people aged 54+ were not willing to pay more for ethical technology use, the highest percentage out of all age groups studied. Meanwhile, almost 84% of 18-24-year-olds stated they would pay anywhere from just a few dollars to 50+ dollars more a month for ethical insurance.
ESG – a priority for Gen Z entrepreneurs
Another study, conducted by Censuswide and Commissioned by Connectd, polled 50 Gen Z entrepreneurs (aged 18-24) and 50 entrepreneurs aged 25 and over to discover the changing ESG priorities among these groups. It appeared that 96% of Gen Z entrepreneurs would turn down cash from a prospective investor based on moral and ethical objections. More than half (58%) consider an investor’s green credentials when deciding who to partner with.