Traditional insurance business models, products and processes of Insurance 1.0 do not conform to the needs, expectations and behaviors of the increasingly influential next generation of insurance buyers
Morristown, NJ – November 28, 2017: The influence of Millennials and Gen Z is growing and intensifying the shift from Insurance 1.0 to Digital Insurance 2.0 that embraces the new expectations, innovations and business models in the digital age. Majesco’s new research report, The New Insurance Customer – Digging Deeper: New Expectations, Innovations and Competition, published today found that these generational groups have a strong interest in doing business with insurers that provide innovative new products and services and leverage digital technologies that align to their unique needs, expectations and behaviors.
Majesco’s second annual consumer research study builds on the insights uncovered last year by assessing the double digit year-on-year growth in behavior changes across all generations as well as diving deeper into the disruptive implications of expectations, innovations and competition for new insurance products and business models that have emerged into the market over the last couple of years.
“Within the industry there is much discussion and debate about whether or not these new products and business models are ‘real’ and will succeed,” noted Denise Garth, SVP Strategic Marketing, Industry Relations and Innovation at Majesco. “Based on the survey, there is a strong indication that many will succeed as well as intensify the shift and momentum toward Digital Insurance 2.0. The research results underscore an acceleration in changing behaviors and interest in using new products, business models and technologies that are re-shaping insurance, especially among Gen Z and Millennials. It also highlights an increasing shift by Gen X as they continue to rapidly adapt to digital in all aspects of their lives. The implications are significant for insurers who are not aggressively planning and executing business strategies that align to this shift.”
The research decomposed a number of new products and business models into 30 distinct component parts and measured reactions to them across the generations. The result is a rich set of insights on the impact and potential of the new innovations and competition and the likelihood of these to accelerate in adoption, whether for a new or renewal purchase. In addition, the research tested consumer reactions to five new insurance business models that are already in the market. The results highlighted some strong interest in these new models, particularly for the younger generations. Based on their reactions, we expect consumer interest in these and other new models to intensify with time, accelerating the decline of Insurance 1.0 and speeding the shift to Digital Insurance 2.0. The report provides a generational playbook framework based on the research results as a starting point for insurers to begin their shift to Digital Insurance 2.0.
“Insurers should see within these components the ingredients of a ‘recipe’ for an ideal insurance offering that has broad appeal across generations, while allowing for personalization and customization by generation,” remarked Garth. “For example, consider the possibility of an on-demand, usage-based insurance product bundled with other services and rewards aimed at reducing claims and costs, with a social-good aspect, which is particularly relevant to Gen Z and Millennials.”
The new thought leadership report, The New Insurance Customer – Digging Deeper: New Expectations, Innovations and Competition, is available on the Majesco website to download, or you can request a copy via email, email@example.com.
Insurance business transformation is a journey of change and revitalization, a renaissance of Insurance. Approximately 150 insurance companies worldwide in P&C, L&A and Group/ Employee Benefits are transforming their businesses with Majesco’s solutions. Our market leading software and consulting 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 majesco.com.