Majesco, a global leader of cloud insurance software solutions for insurance business transformation, announced the availability of a new thought leadership report, Bridging the Customer Expectation Gap: Property Insurance.
The new report takes a detailed look at the customer expectation gaps within property insurance, showcasing the difference between what customers expect, want, and need from Majesco’s Consumer and SMB research, as compared to what insurers are doing based on Majesco’s Strategic Priorities research. Three key gaps are identified including: Pricing and underwriting, Value-added services, and Distribution channels. These gaps represent tremendous insurer opportunities to create long-term customer growth, value, and loyalty by leveraging a customer-centric strategy that incorporates buyer expectations into their operations and strategic priorities.
“Gen X and Boomers – the ‘traditional’ customers, represent today’s business and revenue for most insurers and are reaching their earning power and asset ownership. However, these customers have changing expectations on personalized underwriting, value-added services for risk mitigation and channels they want to buy or engage with that require insurers to rethink and adapt how they do business to enhance loyalty and retain them as customers,” stated Denise Garth, Chief Strategy Officer at Majesco. “More importantly, Millennials and Gen Z customers are becoming the dominant buyers and have even higher expectations and aren’t satisfied with the traditional insurance processes, accelerating their tendency to move to new brands that will meet those expectations. Savvy, innovative insurers who are prioritizing and implementing capabilities that meet these rapidly shifting customer expectations are redefining insurance with an outside-in approach that will enhance their ability to capture and retain any generational group as they are looking for more value from insurers, highlighting that loyalty is a two-way street.”
The state of the property insurance business is increasingly challenging. 2022’s natural disasters had a huge impact on the industry. The rising number of extreme weather events and natural disasters has substantially affected people and businesses, the impact of historic high inflation, rising claims costs, and the cost of insurance is impacting personal and commercial property insurance more than has been seen in many years. Forward-thinking Leaders are making bold, warp-speed moves to close the customer expectation gaps to position for market leadership and growth including:
- Expanded and personalized products through the use of existing and new data for underwriting, helping customers to have protection that meets their specific needs and financial expectations. For insurers, this is helping to improve underwriting profitability, reduce costs, and data-driven risk assessments that can drive risk avoidance or mitigation.
- Enhanced risk resiliency through new products and value-added services that provide information and access to services to understand and proactively respond to risk. For insurers, this helps profitability and customer experiences, shifting the model from claims payout to risk management.
- Extended market and customer reach for people and businesses through new distribution channel options, including embedded insurance, that meet them where and when they need coverage. For insurers, this creates a stronger competitive market position through a growing channel ecosystem that plays to their strengths and closes gaps or weaknesses.
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