–  Millennials continue to dominate the market, accounting for 70% of total vehicle insurance share, supported by ownership trends and mandatory TPL on financed vehicles.

– Seamless digital access and service convenience are key reasons behind Gen Z’s growing interest in vehicle insurance.

Vehicle insurance sales among Gen Z are on the rise, while millennials continue to dominate the market

Jakarta – 12 August 2025. In an era defined by rapid digital transformation and evolving consumer behaviors, the Indonesian automotive and insurance sectors are experiencing a period of significant change. As digital connectivity becomes more integral to daily life, financial habits are adapting, leading to new dynamics in how individuals seek and secure protection for their assets. It is within this landscape of shifting preferences and increased digital fluency that Oona Insurance Indonesia observes compelling trends among different generational cohorts regarding vehicle insurance.

While the overall car sales in Indonesia have recently experienced a modest decline—with data from the Association of Indonesia Automotive Industries (Gaikindo) showing 390,467 cars sold in the first half of 2025, a 9.7% dip from the same period last year—digital insurer Oona Insurance Indonesia recorded a standout trend: a sevenfold increase in vehicle insurance purchases by Gen Z (born 1997–2012) in Q1 2025 alone.

“During the first quarter of this year, we saw a sharp rise in vehicle insurance sales among Gen Z customers. This indicates a growing awareness and proactive approach to protection within this cohort,” said Iwan Kurniawan, Chief of Investment and Strategy. “However, in aggregate terms, Millennials still lead the overall vehicle insurance market, accounting for 70% of total vehicle insurance share at Oona.”

Millennials often exhibit higher rates of vehicle ownership and may have more established financial responsibilities, which traditionally position them as leaders in the vehicle insurance sector. Regulatory frameworks, such as the mandatory third-party liability (TPL) coverage under Indonesia’s P2SK Law (Law No. 4 of 2023), also play a role, impacting purchasing behaviors across generations.

So, what is driving Gen Z’s notable surge in insurance adoption? “Increased awareness and significantly easier access are key factors,” Iwan added. “At Oona, we’ve focused intently on delivering a smooth, digital-first experience. Our platforms make it simple for customers to buy insurance, get roadside assistance, access partner workshops, and file claims—all conveniently online, anytime, from anywhere.”

This emphasis on convenience and digital accessibility strongly resonates with Gen Z, who represent Indonesia’s largest generational group, comprising approximately 27.94% of the population, or roughly 74.93 million people (Badan Pusat Statistik). Their purchasing behavior is heavily shaped by digital platforms and social media, fostering expectations for speed, transparency, and simplicity in all their brand engagements. For young professionals like Rama (25), a digital-native Oona customer, this experience is crucial: “If something happens to my car, I want to sort it out quickly and digitally, from claim submission to resolution. Oona makes that possible.”

With Gen Z now driving a new wave of expectations for digital-first financial services, Oona Insurance is doubling down on delivering seamless, fully digital experiences that meet this generation precisely where they are: online, on-demand, and on their terms.