{"id":51277,"date":"2018-07-12T09:32:30","date_gmt":"2018-07-12T09:32:30","guid":{"rendered":"https:\/\/staging.majesco.com\/?p=51277"},"modified":"2025-04-07T10:17:51","modified_gmt":"2025-04-07T14:17:51","slug":"greenfields-create-new-route","status":"publish","type":"post","link":"https:\/\/staging.majesco.com\/?p=51277","title":{"rendered":"Greenfields Create A New Route to Engage and Capture Customers by Breaking Down Barriers"},"content":{"rendered":"

One of the most famous movie scenes in Hollywood history involves a trash compactor. In Star Wars: A New Hope,<\/em> Luke Skywalker, Princess Leia and Han Solo find that their only route for escape is actually a dead end. They jump into a giant trash compactor and within moments, the walls begin to close in on them.<\/p>\n

Incumbent insurers may be familiar with this feeling and if they aren\u2019t, they soon will be. Slowly, but surely, the walls are closing in. Once-thriving carriers are being confined and compacted by their 30+ year-old business and operating models. They are constricted by an inability to reach new and existing customers as well as underserved or unserved markets. They are competing with InsurTech startup and other incumbent greenfield models that are creating new products (beyond just coverage and price) to include the experience, new services and more, making the overall experience easier and more relevant to each customer.\u00a0 And they are doing this with a new cloud business platform that enables rapid and flexible test and learn environments that adapt to the market.\u00a0 It is about speed to value.<\/p>\n

We compare these models by defining them as Insurance 1.0 <\/strong>and Digital Insurance<\/a> 2.0<\/strong>. Within Insurance 1.0, traditional systems (often modern but in an on-premise mode), products and processes are still in use \u2014\u00a0and in many cases are effectively managing the current business model.\u00a0 The Digital Insurance 2.0 insurer, however, recognizes the need to create new models to reach new markets and a new generation of buyers who have very different needs and expectations. Trying to overlay the new model on the existing does not work \u2026 as it sub-optimizes both and does not move the organization to Digital Insurance 2.0. Increasingly, incumbent insurers are setting up greenfield developments that operate independently, outside of the original model, fostering a two-speed transformation that will gradually relieve the pressure of the compactor environment and release the insurer from many of its constraints.<\/p>\n

To effectively portray the nature of market pressures, and to capture a snapshot of how Startups and Greenfields are responding, we recently published an informative report, Greenfields and Start-ups: Accelerating and Paving the Path to Digital Insurance 2.0<\/a>. Within the report, we discuss, among other things, the very real and practical nature of the barriers that stand between insurers and customers. Which customer barriers will fall and what routes should we take to transition to Digital Insurance 2.0 models?<\/p>\n

What are the barriers to purchase?<\/h2>\n

Insurance purchase barriers are similar to purchase barriers in any other industry. Customers ask the same basic questions. Do I need this? Do I want this? Is this process a headache or is it easy to purchase? Do I have something else that covers me? Does it seem like a good value for my purchase price? The barriers to purchase fall loosely into these categories:<\/p>\n