Some forward-thinking insurers are making bold moves to harness the power of digital technology, partnerships and ecosystems that are redefining a new generation of affinity and program business
Majesco, a global leader of cloud insurance software, today announced the release of a new thought leadership report, A Roadmap to the Future of Insurance: Program and Affinity Business. The report, based on a joint primary research study with PIMA, found that while the affinity and program business market has seen strong growth, there is still significant untapped opportunity to expand and accelerate growth by introducing new products and leveraging new, innovative partnerships within a broader ecosystem.
As expected, the research reflected the organizations are predominantly focused on traditional partners for affinity and program business, such as associations, professional organizations, and employer groups. However, today’s new buyers do not necessarily associate with many of these groups and seek to buy insurance from others such as Gig Economy groups, health and fitness organizations, large retailers, auto manufacturers and more – where the purchase is at a point of when they want it or part of a transaction with that entity, making the buying process frictionless.
"What we uncovered is considerable opportunity in affinity and program business. To seize it requires embracing a new reality of how the modern consumer is behaving and buying," stated Ann Dieleman, Executive Director at PIMA. "Interestingly these groups are highly digital, perhaps even more so as we think about the seismic shift this year, providing the ability to integrate the purchase of insurance."
Encouragingly, the research highlighted relatively high levels of experimentation and planning for new, innovative products such as on-demand and embedded products, as well as engaging in building partner ecosystems. In fact, comparing these survey results to our 2020 Strategic Priorities results revealed that the companies with affinity and program business models are positioning themselves well ahead of "traditional" companies and as leaders in strategic partner ecosystems.
"Today’s customers are increasingly digitally adept, with higher expectations, different needs and a demand for better experiences that are not met with the traditional approach, creating a fault line between customers’ expectations and insurers’ ability to deliver," stated Denise Garth, Chief Strategy Officer at Majesco. "To make this transition and capture the real growth potential of affinity and program business, insurers must embrace a wider range of channels, partners and purchase options that align to a new generation of buyers. This is where new partnerships and an ecosystem of options are crucial to in reaching customers where they are and in doing so driving new revenue streams and access to a broader market through the multiplier effect."
Companies who are actively engaged in experimenting with new products and building a partner ecosystem through affinity and program business are tapping into a significant growth engine. What are your affinity and program business strategies? How do they align to what leaders are doing? Are you focused on traditional models or expanding out to new, innovative models? Your answers will determine your readiness in a new decade and the future of insurance.
Majesco 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 190 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); L&A Insurance Data & Analytics Platform, Digital1st® Insurance with Digital1st® Engagement, Digital1st® EcoExchange, and Digital1st® Platform – a cloud-native, microservices and open API platform; Distribution Management, P&C Insurance Data & Analytics Platform, including an Enterprise Data Warehouse. For more details on Majesco, please visit www.majesco.com.
PIMA is a member-driven trade association focused exclusively on the sponsored benefits market. More than 100 companies – including the largest brokerage firms and largest insurance carriers in the world – belong to PIMA. Whether they are involved in the business of creating, distributing, marketing or administering products for individuals or businesses, our members collaborate to help people achieve financial security and peace of mind. For more information on PIMA, please visit www.pimainsights.org
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