Denise Garth, senior vice president of strategic marketing at Majesco, came to Des Moines recently not only to be our guest on Denim Rivet, but also to take the stage at Denim Summit 2017. On today’s episode, she shares her take on the insurtech ecosystem, its history, and how co-creation and collaboration are critical components of the future.
The Digital Age of Insurance
We’re entering a disruptive period of time in insurance’s digital age. Ever since the introduction of the iPhone there have been shifts in economies – from a buying economy to a sharing economy. With this comes a shift in business models, and you can see it in three key areas: people, technology, and market boundaries. Consumers are now driving the change from traditional models developed for the Baby Boomer generation to the digital age to keep pace with Millennials and Gen Z.
Insurtech – Interplay Between Consumers and Insurers
Crisis breeds innovation. This is one aspect Denise points as helping the rise of insurtech and changing the way the insurance industry views technology. With the rise of technologies like the iPhone coupled with the financial crisis, people started finding new ways to break into industries and interact with consumers to stay competitive. And so insurtech started to emerge quietly around 2013 to meet unmet and unserved needs. Insurance companies learned from how other industries were adapting to better serve customers digitally and started to innovate and apply those practices.
The Digital Divide
Earlier this year, Majesco surveyed insurance companies about legacy systems and new insurtech on the scene to see how they were preparing for the future. They found that while most companies understood what was hitting the marketplace, only about half were actually planning with insurtech in mind. Only a third were actually executing any plans involving them as well. The issue here is that, unlike the Silent Generation and Baby Boomers, Millennials and Gen Z are adapting to technology at an ever-increasing rate. If companies aren’t planning to adapt and meet their evolving expectations, then they are going to get left behind.
Denim and Majesco Partnership
Majesco identified that they needed to optimize their current models to retain the customers they had while also planning on how to adapt to the marketplace of the future with concepts like micro-insurance. In looking at the ecosystem, Majesco clearly saw that one company wouldn’t be able to develop all the technologies needed to close the digital divide. The power of the future is around co-creation and collaboration. Majesco saw the unique capabilities Denim has to offer and partnered as a way to expand engagement with customers across social platforms.