New Majesco research clearly reveals rising consumer expectations for a new era of insuranceLeaders 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. 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.”
Gen Z and Millennials in the forefront
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.
- 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.
The thought leadership report is available to download on the Majesco website, or you can request a copy by emailing [email protected]