Although the SMB market is ripe for growth, a clear interaction between generation and company size emerges
Morristown, NJ (Feb. 1, 2018) – Majesco, a global provider of core insurance software and consulting services for insurance business transformation, today announced the release of a new research report, Insights for Growth Strategies: The New SMB Insurance Customer, that assesses new products and business models introduced to the market by InsurTech or innovative insurers.
Uniquely, small and medium businesses are at the forefront of this digital shift and at the center of new business creation, business transformation and growth in the economy. New technologies, demographics, and behaviors will fuel the growth of new businesses and industries over the next 10 years. This SMB growth is expected to create unprecedented expansion opportunities for commercial, specialty and group / voluntary benefit insurers in terms of new risks, new markets, new customers, and the demand for new products and services. This new report highlights 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.
“A clear interaction between generation and company size emerges,” commented Denise Garth, SVP Strategic Marketing, Industry Relations and Innovation for Majesco. “Highlighting this is the cumulative participation percentages that increase with company size across 14 activities and technologies covered by the survey. As leadership of all companies, large and small, continues to transition to the Gen Z and Millennial generations, the use of these digital age technologies and activities will continue to accelerate, influencing new behaviors, expectations and risks that require innovative insurance products and services represented by Digital Insurance 2.0.”
This year’s SMB research built on the 2016 insights by assessing year-on-year behavior changes and diving deeper into the disruptive implications of expectations, innovations and competition for new insurance products and business models that emerged in the market by InsurTech and traditional insurers. The research alienated these products and models into their component attributes and measured reactions to them across both business sizes and by generation of the business owner/leader, providing insight on the impact and potential of the new innovations and competition in the industry and the potential to rapidly intensify and accelerate the change and disruption underway.
Within the industry there are discussions and debates about whether or not these new products and business models will succeed. Based on the survey, there is strong indication that many will succeed, and they will intensify the shift and momentum toward Digital Insurance 2.0 highlighted by the following survey insights:
- The behavior and expectation increases for Gen X and Pre-retirement Boomers coupled with the already high levels for Gen Z and Millennials are driving significant interest in new, innovative products and channels for insurance, with Millennials and Gen Z leading the way.
- All generational and SMB size segments are actively engaged in the Gig Economy, both as providers and consumers of independent contractor/freelancer services, highlighting the rapid growth in this new economy.
- Use of on-demand insurance was surprisingly strong with 13% to 41% of respondents having already purchased it for a specific event such as a conference or business travel.
- “Ideal insurance offering” concepts based on combinations of attributes with positive consideration ratings, highlight a strong appeal among SMBs for reducing costs and risks through value added services and social networking options.
- The survey also assessed reactions to four relatively new insurance business models currently in the market. Positive responses to these models reached 50% across many of the segments. When the “swing group” is added (those giving neutral ratings that could swing positive or negative), the total positive views in most segments reach 80% or higher, highlighting the competitive threat that new business models pose to established companies.
The new thought leadership report, Insights for Growth Strategies: The New SMB Insurance Customer, is available on the Majesco website to download, or you can request a copy via email from [email protected].
Insurance business transformation is a journey of change and revitalization, a renaissance of Insurance. Approximately 150 insurance companies worldwide in property and casualty/general insurance, life and annuities 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, business analytics, predictive modeling, digital platform for mobile and portal use, testing services, cloud services, bureau and content services, transformation services, consulting services and more.
For more details on Majesco (NYSE: MJCO), please visit www.majesco.com.
SOURCE: MajescoTags: Digital Insurance, Majesco, small business