To take advantage of the opportunities, insurers must choose to innovate, embrace partners across the emerging ecosystem, and invest in open and flexible capabilities
Morristown, NJ – August 26th, 2021 – Majesco, a global leader of cloud insurance software solutions for insurance business transformation, today announced the availability of a new Celent research report commissioned by Majesco, Next-Gen Platforms in Group and Voluntary: Exploiting new opportunities across the worksite ecosystem.
The report, commissioned by Majesco and executed independently by Celent, called out the massive market opportunity for group and voluntary products with an estimated $19 trillion protection gap in the US market. The report underscores that a fundamental rethink is overdue, and that traditional thinking and approaches are not sufficient. Increasingly, to be competitive in the Group and Voluntary sector requires a broad proposition, extending into new services with new partners, all underpinned by a technology foundation capable of adapting to customer needs fast – whether they’re an employer or employee.
It’s no longer simply about providing life and disability insurance for employees. Employers want and expect a broader range of products and services to attract and retain talent, particularly as the fight for talent is intensifying. Employees want a relationship that feels relevant to them and one that addresses their needs beyond solely insurance. And, for the products they really like and value, employees don't want to be tied to their current employer to keep them when they venture off to new jobs.
“First the ACA then InsurTech created change in the group and voluntary benefits market. Now the convergence of talent competition, technology advancements, wellness initiatives, wealth management, multi-generational employees with varying different needs and expectations have opened up significant opportunities for the group and voluntary business,” commented Denise Garth, Chief Strategy Officer at Majesco. “But to capture these opportunities, as noted in the report, next generation SaaS technology platforms and ecosystems are required to tap into more diversified plays that meet these changing dynamics now unfolding.”
For Group & Voluntary insurers, there exists a largely untapped market in diversified plays. Core medical and retirement services remain an anchor product in the employer / employee decision set and must be considered when shaping or partnering within an employee benefits ecosystem. Benefits purchasing across all categories is converging as players attempt to integrate choice across product types.
The report highlights a largely untapped market in diversified plays. While medical, vision, dental and disability have been the anchors in the market, benefits purchasing is converging as new leaders are integrating new options across products such as long-term care, pet, travel, auto and more. To thrive in the new benefits landscape, insurers must engage with employees during relevant life events that extend beyond insurance to provide more holistic wealth, health, and protection services. A key requirement is a robust group and voluntary benefits ecosystem.
“Understanding where you play in the emerging broader employee benefit ecosystem is a critical question at the heart of any good strategy,” noted Jamie Macgregor, CEO at Celent. “Some insurers will be better positioned than others, but regardless of strength, partnering is an effective strategy to further develop the proposition and capture greater value, breaking down the barriers to entry with new employers and enabling a stickier long-term relationship.”
Open technology solutions are an essential enabler to ensure that all ecosystem parties can plug into the opportunities. A flexible platform technology strategy is a key underpinning to these partnerships, allowing the ability to flexibly plug into ecosystem partners at will. Advancing toward technologies such as open source, APIs, and microservices means organizations can pivot easily and not be overly reliant on a handful of technologies or proprietary solutions.
Learn more by downloading Next-Gen Platforms in Group and Voluntary: Exploiting new opportunities across the worksite ecosystem from the Majesco website or by emailing firstname.lastname@example.org.
Majesco is the leading software partner to both the P&C and L&A insurance markets to modernize, optimize and innovate their businesses at speed and scale. Over 330 insurers, from greenfields, start-ups and MGAs to the largest insurers, reinsurers and brokers use Majesco’s next generation SaaS platform solutions of core, data and analytics, digital, distribution, absence management and a rich ecosystem marketplace of established and InsurTech partners to build the future of insurance.
Our technology, expertise and leadership help insurers innovate and connect to build the future of their business. With over 825 successful implementations and over 65% of our customers on Cloud with Majesco platform solutions, together we have an amazing track record of innovation and real-world results. For more details on Majesco, please visit www.majesco.com.