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Investor Relations

Press Release

Majesco Research Underscores Business Owner Size and Generational Shift to Digital Insurance 2.0

Company Release - 2/1/2018 4:10 PM ET

Although the SMB market is ripe for growth, a clear interaction between generation and company size emerges

MORRISTOWN, N.J.--(BUSINESS WIRE)-- Majesco (NYSE AMERICAN:MJCO), a global provider of core insurance software and consulting services for insurance business transformation, today announced the release of a new research report, Insights for Growth Strategies: The New SMB Insurance Customer, that assesses new products and business models introduced to the market by InsurTech or innovative insurers.

Uniquely, small and medium businesses are at the forefront of this digital shift and at the center of new business creation, business transformation and growth in the economy. New technologies, demographics, and behaviors will fuel the growth of new businesses and industries over the next 10 years. This SMB growth is expected to create unprecedented expansion opportunities for commercial, specialty and group / voluntary benefit insurers in terms of new risks, new markets, new customers, and the demand for new products and services. This new report highlights a strong interest in doing business with insurers that provide innovative new products and services and leverage digital technologies that align to their unique needs, expectations and behaviors.

“A clear interaction between generation and company size emerges,” commented Denise Garth, SVP Strategic Marketing, Industry Relations and Innovation for Majesco. “Highlighting this is the cumulative participation percentages that increase with company size across 14 activities and technologies covered by the survey. As leadership of all companies, large and small, continues to transition to the Gen Z and Millennial generations, the use of these digital age technologies and activities will continue to accelerate, influencing new behaviors, expectations and risks that require innovative insurance products and services represented by Digital Insurance 2.0.”

This year’s SMB research built on the 2016 insights by assessing year-on-year behavior changes and diving deeper into the disruptive implications of expectations, innovations and competition for new insurance products and business models that emerged in the market by InsurTech and traditional insurers. The research alienated these products and models into their component attributes and measured reactions to them across both business sizes and by generation of the business owner/leader, providing insight on the impact and potential of the new innovations and competition in the industry and the potential to rapidly intensify and accelerate the change and disruption underway.

Within the industry there are discussions and debates about whether or not these new products and business models will succeed. Based on the survey, there is strong indication that many will succeed, and they will intensify the shift and momentum toward Digital Insurance 2.0 highlighted by the following survey insights:

  • The behavior and expectation increases for Gen X and Pre-retirement Boomers coupled with the already high levels for Gen Z and Millennials are driving significant interest in new, innovative products and channels for insurance, with Millennials and Gen Z leading the way.
  • All generational and SMB size segments are actively engaged in the Gig Economy, both as providers and consumers of independent contractor/freelancer services, highlighting the rapid growth in this new economy.
  • Use of on-demand insurance was surprisingly strong with 13% to 41% of respondents having already purchased it for a specific event such as a conference or business travel.
  • “Ideal insurance offering” concepts based on combinations of attributes with positive consideration ratings, highlight a strong appeal among SMBs for reducing costs and risks through value added services and social networking options.
  • The survey also assessed reactions to four relatively new insurance business models currently in the market. Positive responses to these models reached 50% across many of the segments. When the “swing group” is added (those giving neutral ratings that could swing positive or negative), the total positive views in most segments reach 80% or higher, highlighting the competitive threat that new business models pose to established companies.

The new thought leadership report, Insights for Growth Strategies: The New SMB Insurance Customer, is available on the Majesco website to download, or you can request a copy via email, info@majesco.com.

About Majesco

Insurance business transformation is a journey of change and revitalization, a renaissance of Insurance. Approximately 150 insurance companies worldwide in property and casualty/general insurance, life and annuities and group/employee benefits are transforming their businesses with Majesco’s solutions. Our market leading software and consulting services uniquely underpin the entire insurance value chain and are designed to empower insurers with the agility, innovation and speed needed to meet their transformation opportunities. Majesco’s solutions include policy management, new business/underwriting, rating, billing, claims management, distribution management, business analytics, predictive modeling, digital platform for mobile and portal use, testing services, cloud services, bureau and content services, transformation services, consulting services and more. 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 these statements as a representation or warranty by Majesco or any other person that we will achieve our objectives and plans in any specified timeframe, or at all. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of 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 of this press release or to reflect the occurrence of unanticipated events, except as required by law.

Majesco
Ashwin Rodrigues, +1-973-461-9087
Director — Global Marketing
ashwin.rodrigues@majesco.com

Source: Majesco