Leaders will rapidly adapt to what customers want and expect, rather than requiring customers to adapt to the way insurance has always worked
March 26, 2019 — MORRISTOWN, N.J.–(BUSINESS WIRE)–Majesco (NASDAQ:MJCO), a global leader of cloud insurance software solutions for insurance business transformation, today announced the release of a new thought leadership report, Building a Business Model for the Insurance Customer of the Future, based on its third annual survey of consumers who buy insurance. The report underscores why insurers must rapidly shift to a new era of insurance for growth and retention of customers.
Customer focus is always a win-win
“Customer focus is always a win-win. How insurers make it a win-win is changing due to new technologies, new competitors, new products, new services and new customer expectations,” commented Denise Garth, SVP of Strategic Marketing, Industry Relations and Innovation at Majesco. “Today’s and tomorrow’s insurance customers are shifting across multiple fronts. Understanding how customers make decisions for insurance is critical for insurers as they create strategies for their future. Savvy, innovative companies are redefining the future of insurance from an outside-in perspective, by adapting to these changes.”
All customer generational segments, led by Gen Z and Millennials, actively participate in marketplace trends and use technologies that are driving the demand for new insurance products, services and engagement strategies. Insurers must begin to act on these now if they hope to capture the growth opportunities they offer, let alone retain existing customers who are increasingly open to newer offerings.
The Sharing Economy
- Gen Z and Millennials lead as consumers in the Sharing Economy. Gen Z stands out in their use of rideshare services jumping sharply from 45% to over 60% and showing a strong 10% increase in the use of homeshare services.
- Across all generations, fitness trackers and smart speakers are the most heavily used connected devices. Gen Z and Millennials lead in the use of connected home devices, with Millennials doubling their year-over-year use of connected security devices like Ring doorbell.
- Over 20% of all generations have purchased event or single-item insurance, highlighting growing interest in pay-as-you-need insurance products.
Most insightful, is the strong openness by all generations in using new products, services and business models, many already offered or in experimental phase by InsurTech startups, innovative carriers, reinsurers, and MGAs. First-mover status will be critical to win market share ahead of the growing field of competitors capitalizing on these new customer expectations.
- Gen Z and Millennials are most interested in value-added service offerings, indicating they are less indoctrinated into the traditional insurance business model than their older counterparts, and are more open to viewing insurers as partners in their overall well-being.
- Nearly 50% of Millennials and closely followed by Gen Z, would consider eight different insurance pricing models based on new data sources that reflect their desire for personalized rather than “one size fits all” products.
- The purchase of insurance from Amazon, Google or Apple is most likely by Gen Z and Millennials. In contrast, Gen X and Boomers have very little interest in doing so. This stark difference reflects the growing gap between generations that is increasingly taken advantage of by innovative, digital first competitors who are aggressively capturing and establishing loyal next generation customers.
Insurance business transformation is a journey of change and revitalization, a renaissance of Insurance. Approximately 160 insurance companies worldwide in P&C, L&A and Group / Employee Benefits are transforming their businesses with Majesco’s solutions. Our market leading software, consulting and 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 www.majesco.com.
Cautionary Language Concerning Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of management, are not guarantees of performance and are subject to significant risks and uncertainty. These forward-looking statements should, therefore, be considered in light of various important factors, including those set forth in Majesco’s reports that it files from time to time with the Securities and Exchange Commission and which you should review, including those statements under “Item 1A – Risk Factors” in Majesco’s Annual Report on Form 10-K.