Shifting from Auto Insurance Transaction to Mobility Customer Experience: Majesco Report

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, according to Majesco’s new research report

Morristown, NJ (June 4, 2020) – Majesco, a global leader of cloud insurance software solutions for insurance business transformation, is pleased to announce 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 twice as 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.

Download a copy of the report at www.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); Digital1st® Insurance with Digital1st® Engagement, 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

is 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 reports that Majesco and InsPro Technologies file from time to time with the Securities and Exchange Commission (the “SEC”) and which you should review, including those statements under “Item 1A – Risk Factors” in the Annual Reports on Form 10-K of Majesco and InsPro Technologies, as may be amended by their Quarterly Reports on Form 10-Q.

Among the key factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements are the following: (i) the expected timeframe for completing the merger; (ii) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; (iii) the risk that one or more of the conditions to closing of the merger may not be satisfied, including, without limitation, the approval of the merger by InsPro Technologies’ stockholders; (iv) the risk of disruptions to current plans and operations, increased operating costs and the potential difficulties in maintaining customer, supplier, employee, operational and strategic relationships as a result of the announcement and consummation of the merger or otherwise; (v) adverse results in any legal proceedings that may be instituted against InsPro Technologies, Majesco, their respective affiliates or others following announcement of the merger; (vi) the risk that unexpected costs will be incurred in connection with the merger; (vii) the risk that the projected value creation and efficiencies from the merger will not be realized, or will not be realized within the anticipated time period; (viii) Majesco’s ability to promptly, efficiently and effectively integrate InsPro Technologies’ operations into those of the combined company; (ix) working capital needs; (x) continued compliance with government regulations; (xi) labor practices; (xii) the combined company’s ability to achieve increased market acceptance for its product and service offerings and penetrate new markets; and (xii) the possibility that InsPro Technologies or Majesco may be adversely affected by other economic, business and/or competitive factors, including rapidly changing customer preferences and trends.

Additional information concerning these and other factors can be found in Majesco’s and InsPro Technologies’ filings with the SEC, including Majesco’s and InsPro Technologies’ most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K and in the proxy statement to be filed by InsPro Technologies in connection with the proposed transaction. These forward-looking statements should not be relied upon as predictions of future events and neither Majesco nor InsPro Technologies can 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. Readers should not regard these statements as a representation or warranty by Majesco or InsPro Technologies or any other person that these objectives and plans will be achieved in any specified timeframe, or at all. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Majesco and InsPro Technologies are under no obligation to, and expressly disclaim any obligation to, update or alter any forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise, except as required by applicable law.

SOURCE: Majesco

Tags: auto insurance, customer experience (CX), Majesco, Millennials, Mobility as a Service (MaaS), Transformation
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