Majesco Research Underscores a New Small-Medium Business Market Reality that Demands New Insurance Strategies to Capture the Window of Opportunity

By Staff 5 years ago

Rapid embracement of marketplace trends and digital technologies is
intensifying the demand for a new digital era of insurance

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MORRISTOWN, N.J.–(BUSINESS WIRE)–Majesco (NASDAQ:MJCO), a global leader of cloud insurance software
solutions for insurance business transformation, today announced the
release of new primary research report, Building
the Business Model for the Next Generation of Small-Medium Business
Leaders, based on its third annual survey of small-medium
business owners (SMBs) who make or influence insurance purchase
decisions for their companies. The report underscores shifts in
behaviors and expectations of the SMB market that demand insurers to
rethink their business to retain their customer base and capture growth
opportunities emerging for a growing and underserved market of over 30
million SMBs, which comprise over 99% of all businesses in the U.S.

“Embracement of digital technologies, new SMB market opportunities and
the generational shift and influence of Millennials and Gen Z are
rapidly redefining how insurers must engage and respond,” commented
Denise Garth, SVP of Strategic Marketing, Industry Relations and
Innovation at Majesco. “Over the next 7 years, Millennials and Gen Z
will become the dominant owners and influencers in the SMB market as
they launch new startups and take over the helm of existing businesses.
This new generation of SMB leaders use digital technologies in their
daily life and business which subsequently influence their behaviors and
expectations, requiring new risk products, services, and engagement
channels.”

The acceleration of these market trends and digital technologies is
broadening SMB interest in new insurance products, services and business
models – putting insurers with innovative offerings in a first-mover
position to win market share and fast-track growth strategies. Some key
findings:

  • Up to 38% of Gen Z and Millennial SMBs purchased business insurance
    online, within the 10-99 employees segment — doubling from last year.
  • From 37% to 48% of Gen Z and Millennial SMBs use connected devices
    like security systems and cameras, thermostats and smoke detectors.
  • Nearly 35% of larger Gen Z and Millennial SMBs offer employees
    discounts on life or health insurance if they use fitness trackers.
  • Up to 32% of SMBs purchased on-demand insurance to cover an event or
    product for a specific period of time.
  • SMBs have strong interest in value-added services – nearly 75% across
    all segments.
  • SMBs have strong interest levels of nearly 60% in social and
    peer-to-peer features and business models.
  • Among medium and larger Gen Z and Millennial SMBs, there is
    exceptionally strong interest in products using new data sources for
    pricing and underwriting risk.
  • Gen Z and Millennials would strongly consider purchasing insurance
    from the “Tech Giants” including Amazon, Google, Apple, Netflix and
    others.
  • SMBs are interested in buying insurance from sources other than
    agent/broker or company channels and they want to digitally manage
    their policies.

The increasing demand for and use of digital technologies, the emergence
of innovative new niche businesses, and the shift of the Gen Z and
Millennials as SMB owners will require innovative new insurance business
models, products, services and channels to capture the growth
opportunities. The crucial and strategic question for existing insurers
is: Are you ready to capture the tremendous growth opportunities in this
vast market — but in a new, innovative and digital way?

The thought leadership report is available to download on the Majesco
website, or you can request a copy by emailing info@majesco.com.

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™ L&A and Group Core Suite (Policy,
Billing, Claims); Digital1st Insurance™ with Digital1st eConnect™,
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.

Cautionary Language Concerning Forward-Looking Statements
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.

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: integration risks;
changes in economic conditions, political conditions, trade protection
measures, licensing requirements and tax matters; technology development
risks; intellectual property rights risks; competition risks; additional
scrutiny and increased expenses as a result of being a public company;
the financial condition, financing requirements, prospects and cash flow
of Majesco; loss of strategic relationships; changes in laws or
regulations affecting the insurance industry in particular; restrictions
on immigration; the ability and cost of retaining and recruiting key
personnel; the ability to attract new clients and retain them and the
risk of loss of large customers; continued compliance with evolving
laws; customer data and cybersecurity risk; and Majesco’s ability to
raise capital to fund future growth.

These forward-looking statements should not be relied upon as
predictions of future events and Majesco cannot assure you that the
events or circumstances discussed or reflected in these statements will
be achieved or will occur. If such forward-looking statements prove to
be inaccurate, the inaccuracy may be material. You should not regard
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person that we will achieve our objectives and plans in any specified
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this presentation. Majesco disclaims any obligation to publicly update
or release any revisions to these forward-looking statements, whether as
a result of new information, future events or otherwise, after the date
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events, except as required by law.

Contacts

Tara Dilzer Alexander
Director, Marketing Communications and
Creative Services
+1 718 916 6873
tara.dilzeralexander@majesco.com

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