Insurers must rethink and realign their business with the needs and expectations of customers in next 10-20 years… rather than the past 10-20 years
Morristown, NJ., November 11, 2016 — Majesco, a global provider of core insurance software, consulting and services for insurance business transformation, this month published a new thought leadership report, The Rise of the New Insurance Customer: Shifting Views and Expectations…Is Your Business Ready for Them?
Based on primary consumer research, the report exposes the vulnerable positions of personal property and casualty (P&C) and individual life and annuity (L&A) insurers compared to consumer opinions of other businesses and the rapidly shifting needs and expectations of the emerging dominant generation of insurance customer.
“It is clear that the current insurance business and customer journey was built for the silent and baby boomer generations, who have adapted to it and are generally content with it, because that’s the way it has always been for them,” noted Denise Garth, Senior Vice President of Strategic Marketing, Industry Relations and Innovation at Majesco. “However, led by Millennials, Gen Z and increasingly Gen X who sits between them and the older generation, their needs and expectations are rapidly shifting to new products and services, new channels and a robust, intuitive digital experience. Loyalty is now influenced by how well insurers meet their needs and expectations for products, engagement and value, opening the door to new competitors and the potential shift in market leadership over the next 5-10 years as these generations overtake the previous ones.”
Insurance comes in ‘dead last’
The research assessed consumer perceptions across ten common industries they do business with regularly, including P&C and L&A insurance, finding that insurance is “dead last” in terms of “easy to do business with.” L&A is significantly lower than P&C as compared to the other industries / businesses with which consumers regularly interact. Eleven key insurance industry-held perceptions about insurance customers indicated that five are completely outdated, five others are shifting and only one remains relevant.
Specifically, the research dives into this shift with more insights on the move to digital, expected by Millennials and Gen Z but also highlights that Gen X is often dramatically aligning with Millennials and Gen Z. The generational gap reflects an insurance industry steeped in tradition, where business models, business processes, channels and products are becoming rapidly irrelevant for the younger generations. The result is an open door to fresh, culture-savvy competition.
The report also shows there is significant potential demand among consumers for new, non-traditional products and services, and new ways to buy and service them. This potential becomes especially strong among the younger generations when you add in the “swing group” – the group of respondents who were neutral/undecided about some of these new ideas, but like swing states in an election, they can rapidly accelerate adoption rates if these new ideas demonstrate sufficient value to win them over.
The new thought leadership paper, The Rise of the New Insurance Customer: Shifting Views and Expectations…Is Your Business Ready for Them?, is available here.
Insurance business transformation is a journey of change and revitalization, a renaissance of Insurance. Approximately 150 insurance companies worldwide in P&C, L&A and Group/ Employee Benefits are transforming their businesses with Majesco’s solutions. Our market leading software and consulting services uniquely underpin the entire insurance value chain and are designed to empower insurers with the agility, innovation and speed needed to meet their transformation opportunities. Majesco’s solutions include policy management, new business / underwriting, rating, billing, claims management, distribution management, BI/ analytics, predictive modeling, digital platform with mobile and portal, testing services, cloud services, bureau and content services, transformation services, consulting services and more. For more details on Majesco, please visit here.