Press Release
To be a market leader in the future, insurers need to transition their thinking from being an auto insurer to being a mobility provider, for which auto insurance may be just one component
Morristown, NJ – June 4th, 2020 – Majesco (NASDAQ: MJCO), a global leader of cloud insurance software solutions for insurance business transformation, today announced the release of their 5th annual primary consumer research study,
Rethinking Auto: From Auto Insurance Transaction to Mobility Customer Experience, which takes a deeper dive into the market shifts and generational buying differences for automobiles, highlighting a shift from auto as a policy transaction to a mobility experience. The report provides a detailed analysis into the generational differences in the types of transportation options used and the expectations for a broader mobility experience that includes a risk product, access to other transportation options, and other value-added services.
“With so much change occurring in the automotive space, companies from outside the insurance industry are coalescing around a shift to mobility, which will have far reaching implications for auto insurance providers,” stated Denise Garth, SVP of Strategic Marketing, Industry Relations and Innovation at Majesco. “Mobility options are important to customers and are fulfilled in different ways well beyond traditional vehicle ownership, a significant shift that is impacting business models from automotive companies to insurance companies alike.”
Mobility brings together different elements of other markets or industries, including insurance, that enable and support an array of options. Unfortunately, the customer experience is fragmented for each of these elements, creating an inconsistent and difficult customer journey because they have to work with the different parties individually. New mobility options and experiences are emerging that will potentially reduce, reallocate or eliminate a substantial portion of today’s auto insurance premiums. To retain the customer and revenue, insurers must rethink their business beyond an auto insurance transaction to a broader mobility experience, offering new revenue options.
The research highlighted the differences between Millennials and Gen Z versus Gen X and Boomers, including:
- 28% of the younger generation use a device or app to record mileage and driving behavior as compared to 15% for the older generation – nearly a 100% difference
- 11% rented someone else’s car through a sharing service and 9% rented out their car versus 2% and 1 % for the older generation
- 30% of the younger generation are using or would use an all-inclusive vehicle subscription service – nearly four times higher than the older generation, indicating interest in different mobility options as compared to “owning” a vehicle.
- 40% of the younger generational segment would pay $10 per month for a mobility solution with access to a wide array of services, as compared to only 20% of the older generation, a 100% difference.
- The younger generation is two times more likely to buy auto insurance from a car shopping website or a vehicle manufacturer website, have it included in the purchase or lease of a vehicle, or buy it from Amazon or Google
The results of this research highlight how the next generation of insurance buyers’ use of mobility options will dramatically change, requiring insurers to change as well. To be a market leader in the future, insurers need to transition their thinking from being an auto insurer to being a mobility provider, for which auto insurance may be just one component.
You can request a copy of the report by emailing
info@majesco.com or download it here:
https://staging.majesco.com/white-papers/rethinking-auto-insurance/.
About Majesco
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); Digital1
st® Insurance with Digital1
st® Engagement, Digital1
st® EcoExchange and Digital1
st® 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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This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act. These forward-looking statements are made on the basis of the current beliefs, expectations and assumptions of management, are not guarantees of performance and are subject to significant risks and uncertainty. These forward-looking statements should, therefore, be considered in light of various important factors, including those set forth in Majesco’s reports that it files from time to time with the Securities and Exchange Commission and which you should review, including those statements under “Item 1A – Risk Factors” in Majesco’s Annual Report on Form 10-K, as amended by its Quarterly Reports on Form 10-Q.
Important factors that could cause actual results to differ materially from those described in forward-looking statements contained in this press release include, but are not limited to: the adverse impact on economies around the world and our customers of the current COVID-19 pandemic; our ability to achieve increased market penetration for our product and service offerings and obtain new customers; our ability to raise future capital as needed; the growth prospects of the property & casualty and life & annuity insurance industry; the strength and potential of our technology platform and our ability to innovate and anticipate future customer needs; our ability to compete successfully against other providers and products; data privacy and cyber security risks; technological disruptions; our ability to successfully integrate our acquisitions and identify new acquisitions; the risk of loss of customers or strategic relationships; the success of our research and development investments; changes in economic conditions, political conditions and trade protection measures; regulatory and tax law changes; immigration risks; our ability to obtain, use or successfully integrate third-party licensed technology; key personnel risks; and litigation risks.
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