Press Release

New Majesco Research Indicates UK Insurance Market Failing to Deliver on Customer Expectations

Research reveals that 1 in every 3 customers feels insurers fail on minimum level service expectations

New York, NY and London, UK 14th July 2015: Majesco , a global provider of core insurance software, consulting and services for insurance business transformation, today announced the results of its UK insurance market research into the quality of the customer experience. Independent market research commissioned by Majesco, and carried out by Redshift Research, reveals that 1 in every 3 customers feels that insurers are failing on minimum level service expectations. Even the highest customer satisfaction score in the insurance industry of 69%, reached by motor insurance providers, compares unfavourably with world class companies such as Amazon, which scores 86.7%1 – by comparison rail travellers report an overall satisfaction figure of 83%2.

Other key findings include:

  • Over 70% of the market indicates they want a ‘family’ product, combining motor, home, travel and pet in a single insurance policy. Nearly42% would buy a family product tomorrow, while 30% were unsure but did not rule out the option – highlighting a significant majority (72%) of the market expects access to a product that is not available today.
  • While insurance remains a price sensitive sector in the UK, the research notes that high value customers in particular are not buying on price. In lower income categories, price is most valued by 80% of people but in higher income categories the importance of price falls to 60-75% while the importance attached to quality of service shows a reverse trend.
  • Most customers would prefer to manage their policy themselves, via an online website (57%) or using a secure online portal (49%).
  • Over 60% of respondents say their motor or home and contents insurers only contact them once a year, probably on renewal.
  • Life, pensions and ISA providers were reported to be more communicative with 47% of respondents indicating their insurers communicate with them once a year, whilst 26% received communication two or three times a year.
  • Only 4% of customers indicate the enticement of a cuddly toy – such as the friendly rodents and robots so popular as TV advertisement characters with the insurance industry – would influence their decision as to whether to recommend their insurance company to friends or family.

The research further highlighted that insurers should focus on delivering good, consistent service rather than focus on ‘free gifts’ or trying to be the cheapest. A third of customers simply wanted to improve the time it took to answer calls, while 29% of life, pensions and ISA customers thought providers could improve service levels by offering 24/7 access to a secure web portal.

Furthermore, the research revealed that customers felt insurers of all types should communicate more effectively by making better use of the customers’ preferred channels of communication with a majority preferring contact by email, for all types of insurance. While 55% of customers of life, pensions and ISA providers are mainly contacted by post, 62% would prefer to be contacted by email – and only 36% want to be contacted by post

A key conclusion that may be drawn from the research findings is that there is significant gap between customer expectations and what insurers provide today, indicating insurers must make changes that will enable them to stand out from the crowd by delivering exceptional service. There is real opportunity to alert customers buying on price to the service differential that could mean an easier claims process or time-saving self-management of documents and renewals. A new entrant to the market – someone who listens to what customers want and delivers on that – potentially stands to disrupt the entire insurance sector very quickly.

Vidyesh Khanolkar, Vice President, Majesco (UK) Limited comments, “The 2015 Majesco Research Report is a wakeup call to an industry that has become hidebound by traditional ways of working and still lacks sufficient focus on the customer experience. The report suggests that the insurance industry is not listening hard enough to what customers are clearly saying that they want. Insurers  need to make substantive improvements in customer service, make it easier for customers to access documents and customer support.  Bring new products to market and improve the ease with which administrative tasks are done online. Addressing customer needs is no longer just good business practice but could prove to be key to survival and future business success.”

1 UK Customer Satisfaction Index of January 2015.

2 National Rail Passenger Survey Autumn 2014

 

To request a copy of the research report, “Assessing the Quality of the Customer Experience – The 2015 Majesco Research Report on the UK Insurance Market”, please send an email to info@majesco.com.

 

About Majesco

Majesco enables insurance business transformation for approximately 140 insurance customers by providing solutions which include software, consulting and services.

Our customers are insurers, MGA’s and other risk providers from the Property and Casualty, Life, Annuity and Group insurance segments worldwide.   Majesco delivers proven software solutions, consulting and services in the core insurance areas such as policy, billing, claims, distribution management, BI/ analytics, digital, application management, cloud and more. For more details on Majesco, please visit www.majesco.com.

 

RedShift Research Methodology

 

The 2015 Majesco Research Report on the UK Insurance Market was conducted among 1000 UK adults with an insurance policy.

The interviews were conducted online by Redshift Research in May 2015 using an email invitation and an online survey via Redshift Research’s Crowdology panel.

Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. In this particular study, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 3.1 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.

Sample was selected from the Crowdology & Crowdology partner panels. Crowdology™ is an online panel owned and operated by Redshift Research.  The Crowdology™ panel is balanced across regional, age and gender demographic factors, and is nationally representative of the UK population. Each respondent completes 120 profiling questions before being accepted to join our panel.  Panel Quality Management is carried out frequently to ensure reliable surveys.

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. All statements other than statements of historical fact could be deemed forward-looking statements. Statements that include words such as “may,” “will,” “might,” “projects,” “expects,” “plans,” “believes,” “anticipates,” “targets,” “intends,” “hopes,” “aims,” “can,” “should,” “could,” “would,” “goal,” “potential,” “approximately,” “estimate,” “pro forma,” “continue” or “pursue” or the negative of these words or other words or expressions of similar meaning may identify forward-looking statements. For example, forward-looking statements include any statements of the plans, strategies and objectives of management for future operations, including the execution of integration and restructuring plans and the anticipated timing of filings; any statements concerning proposed new products, services or developments; any statements regarding future economic conditions or performance; statements of belief and any statement of assumptions underlying any of the foregoing. 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 not be relied upon as predictions of future events and Majesco cannot assure you that the events or circumstances discussed or reflected in these statements will be achieved or will occur. Furthermore, if such forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by Majesco or any other person that we will achieve our objectives and plans in any specified timeframe, or at all.

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 U.S. Securities and Exchange Commission. Important factors that could cause actual results to differ materially from those described in forward-looking statements contained herein include, but are not limited to: (i) the potential value created by the merger and the possibility that the projected value creation and efficiencies from the merger will not be realized, or will not be realized within the expected time period; (ii) the combined company’s ability to raise future capital as needed to fund its operations and business plan; (iii) the risk that the businesses of Cover-All Technologies Inc. and Majesco will not be integrated successfully; (iv) changes in economic conditions, political conditions, trade protection measures, licensing requirements and tax matters; (v) the potential of the combined company’s technology platform; (vi) the combined company’s ability to achieve increased market acceptance for its product and service offerings and penetrate new markets; (vii) the ability of the combined company to protect its intellectual property rights; (viii) competition from other providers and products; (ix) the combined company’s exposure to additional scrutiny and increased expenses as a result of being a public company that is no longer a small reporting issuer; and (x) the combined company’s ability to identify and complete acquisitions, manage growth and integrate future acquisitions.

In addition, various important risks and uncertainties affecting Majesco may cause the actual results of Majesco to differ materially from the results indicated by the forward-looking statements in this press release, including, without limitation: (i) the financial condition, financing requirements, prospects and cash flow of Majesco; (ii) expectations regarding potential growth and ability to implement short and long-term strategies; (iii) the risk of loss of strategic relationships; (iv) Majesco’s ability to compete successfully; (v) dependence on a limited number of key customers; (vi) worldwide political, economic or business conditions; (vii) changes in technology; (viii) changes in laws or regulations affecting the insurance industry in particular; (ix) restrictions on immigration; (x) the inability to achieve sustained profitability; (xi) the ability to obtain, use or successfully integrate third-party licensed technology; (xii) the ability and cost of retaining and recruiting key personnel or the risk of loss of such key personnel; (xiii) the ability to attract new clients and retain them and the risk of loss of large customers; (xiv) continued compliance with evolving laws; (xv) ability to maintain or protect intellectual property; (xvi) unauthorized disclosure of sensitive or confidential client and customer data and cybersecurity; (xvii) ability of our customers to internally develop new inventions and competitive products; and (xviii) diversion of management’s attention to the merger rather than regular operation of the business.

You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Majesco disclaims any obligation to publicly update or release any revisions to these forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this press release or to reflect the occurrence of unanticipated events, except as required by law.

Contact:

Majesco UK Ltd

Iain Baker

Iain.Baker@majesco.com

+44(0) 118 903 5770

http://www.majesco.com/

 

PR contact

itpr

Victoria O’Hare/Holly Forrest

majesco@itpr.co.uk

+44 (0)20 7183 8200

www.itpr.co.uk

 

 

Media Contact

Majesco
Tara Dilzer Alexander
Director, Marketing Communications and Creative Services
Phone: +1-718-916-6873
Email: tara.dilzeralexander@majesco.com

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