To be a market leader in the future, insurers need to transition their thinking from executing policy transactions to providing a life, health, wealth and wellness experience
Morristown, NJ August 6th, 2020 – Majesco (NASDAQ: MJCO), a global leader of cloud insurance software, today announced the release of their 4th annual primary consumer research, Rethinking Life Insurance: From a Transaction to a Life, Health, Wealth and Wellness Customer Experience,highlighting a shift from a focus on policy transactions to creating a broader life, health, wealth and wellness experience. The report provides a detailed analysis of new opportunities for growth and capturing a new generation of customers made possible by this shift.
The report highlights the impact of status quo of business models used for decades and the 50-year-long decline in life insurance ownership, but outlines the opportunity to reverse course based on the high level of interest in life insurance and voluntary benefits by the Millennial and Gen Z generations. In this new digital era, new expectations for a broader health, wealth and wellness focus will pressure insurers to develop products and services that are more affordable, tailored to very specific needs, digital-first, simpler, and grounded in trust. Customer needs, expectations and demands will create demand for new, digital products like on-demand, single-item and embedded coverages, value-added services, and more, that are bundled in a way to help customers manage their lives.
“Today’s customers are increasingly digitally adept, with higher expectations, different needs and a demand for better experiences that are not met with the ‘traditional’ insurance approach, creating a fault line between customers’ expectations and insurers’ ability to deliver. This fault line is what this year’s consumer research for life insurance has identified and detailed in this report,” stated Denise Garth, SVP of Strategic Marketing, Industry Relations and Innovation at Majesco. “The survey results in this report clearly indicate that customers want a relationship with a broader value to make their lives better across life, health, wealth and lifestyle needs.”
Life insurers must reimagine the scope of what they offer to customers. They must think of it as a compelling customer experience that is wrapped around a risk product and value-added services that are part of a broader health, wealth and wellness ecosystem. This is where exciting new business opportunities await, and where new competitors are emerging. Insurers have a choice of whether or not they are simply going to be product providers within an ecosystem that is developed outside of themselves, or whether they want to own the customer relationship and set the standard for an ecosystem where they operate as the core.
The research highlights generational differences between Millennials and Gen Z versus Gen X and Boomers on their views of life insurance and the shift to a holistic view for health, wealth and wellness including:
- Millennials and Gen Z believe life insurance is more important – 79% as compared to 69% for Gen X and Boomers. They also have a larger array of reasons why life insurance is important; many driven by new behaviors and needs.
- Millennials and Gen Z are willing to share their personal information and data up to 39% more than the older generations.
- Millennials & Gen Z outpace Gen X and Boomers in wanting access to all health, wealth and wellness areas by up to 33% or more
- Millennials and Gen Z seek information and advice for a variety of areas: Health, Financial Planning, Legal, Tax, Mortgage loads, bank balances, etc.
- The younger generations want access to their information such as policies, medical records, fitness data, and household purchases, reflecting a strong interest in value added services.
- Millennials and Gen Z are open to a broader array of channels, including big tech like Amazon, Apple and Google.
Majesco (NASDAQ: MJCO) provides technology, expertise, and leadership that helps insurers modernize, innovate and connect to build the future of their business – and the future of insurance – at speed and scale. Our platforms connect people and businesses to insurance in ways that are innovative, hyper-relevant, compelling and personal. Over 200 insurance companies worldwide in P&C, L&A and Group Benefits are transforming their businesses by modernizing, optimizing or creating new business models with Majesco. Our market-leading solutions include CloudInsurer® P&C Core Suite (Policy, Billing, Claims); CloudInsurer® LifePlus Solutions (AdminPlus, AdvicePlus, IllustratePlus, DistributionPlus); CloudInsurer® L&A and Group Core Suite (Policy, Billing, Claims); Digital1st® Insurance with Digital1st® Engagement, Digital1st® EcoExchange and Digital1st® Platform – a cloud-native, microservices and open API platform; Distribution Management, Data and Analytics and an Enterprise Data Warehouse. For more details on Majesco, please visit www.majesco.com.
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