Expectations for a wider array of capabilities from new products and value-added services to payment options, channel choices and personalized, holistic experiences offer growth opportunities
Majesco, a global leader of cloud insurance software solutions for insurance business transformation, announced the availability of its fifth annual report on insurance customer’s changing expectations, behaviors and needs, Your Insurance Customers – A Crystal Ball of Big Changes in a Small Window of Time. The report, based on primary research with insurance buyers across life/health/ accident, employee/voluntary benefits, auto/mobility, and homeowners/renter’s insurance, underscores the urgency for the insurance industry to rapidly adapt to a new reality for all customers, in particular Gen Z and Millennials who are now the dominant insurance buyer, replacing Gen X and Boomers.
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“Millennial and Gen Z life journeys are not following the path set by older generations, with significant lifestyle shifts, needs and expectations from older generations that require different insurance offerings,” said Denise Garth, Chief Strategy Officer at Majesco. “COVID increased the awareness and value of insurance, but also significantly changed expectations of buying to be far more digital, offering insurance through more desired channels – where embedded insurance is seen as extremely valuable, and digital payment options have exponentially increased including through new options like Bitcoin, Zelle and Venmo. Most interesting is the shift in expectations in types of insurance products needed, the necessity for value added services and the demand for personalized underwriting leveraging new data sources including IoT devices.”
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The Millennial and Gen Z populations desire a holistic customer experience – where digital offerings bring together other products and services to help them manage their lives. This necessitates a full view for customers across their insurance products, value added services and non-insurance products. When insurers can’t deliver that view, a gap arises between what customers expect and what insurers are delivering. This gap opens the door for new competitors to meet that expectation, either directly or through partnerships with insurers. Companies like Toyota, Sofi, Ford, Petco, Outdoorsy are already doing this – offering insurance products through embedding or partnering on channel options with various insurers. The report adds clarity to the market areas where insurers are currently missing opportunities like these.
The viability of the insurance industry is vitally connected to these demographic trends, customer expectations and adoption of new technologies and primed for growth. The only question is whether insurers are prepared to capitalize on that growth. The next generation of buyers is here today. The older generation has accelerated their adoption of digital, increasing their expectations as well. Insurers must quickly update their mindsets, their processes and technology, or risk being left behind in a state of irrelevance.
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