Majesco Consumer Research Reveals Growing Insurance Protection Gap with Financial Risks at the Epicenter and How Insurers Can Close It

MORRISTOWN, N.J.--(BUSINESS WIRE)--Majesco, a global leader of cloud and AI-native insurance software for P&C and L&AH insurers, today announced the release of its latest annual consumer research report, Closing the Insurance Protection Gap: How Generational Differences in Risk, Readiness, and Coverage Are Redefining Insurance Business Value.

The report uncovers a growing disconnect between how consumers perceive risk and how prepared they feel, highlighting significant protection gaps across lifestyle, financial, and safety/security risks for which different insurance products will help address.

The protection gaps are a critical fault line in the insurance value proposition—creating both a growing challenge and a substantial growth opportunity for insurers who can respond with more relevant, personalized products and experiences. Financial risks sit at the epicenter of the protection gap where we are seeing increased costs for insurance, placing increased pressure on customers’ financial well-being, particularly given inflation, and high interest rates.

The research shows large and persistent gaps—often exceeding 20 percentage points between concern and preparedness for both Gen Z & Millennials and Gen X & Boomers, even as consumers clearly understand the importance of maintaining their health, protecting their families, and achieving financial stability. The increased insurance costs across nearly all lines of business are unsustainable for consumers, forcing them to make difficult decisions such as not buying insurance, switching for a lower cost, increasing deductibles, and more.

It is a tipping point of change, one that insurers must respond to if they want to remain viable and relevant with consumers.

“Protection gaps represent more than unmet coverage needs; they reflect unmet emotional, financial, and practical needs,” said Denise Garth, Chief Strategy Officer at Majesco. “Consumers want help navigating uncertainty and looks at their risk more broadly and personally. The growing protection gap has a significant societal and fundamental insurance impact resulting in changing buying behaviors, demand for different products, and shifting expectations that will have long-term consequences for all insurers in customer acquisition and retention, growth, profitability, and brand loyalty and trust.”

The report findings point to a clear path forward: insurers that combine trusted products and services with AI-enabled education, personalization, and service can play a decisive role in helping consumers move from concern to confidence, closing the protection gap. Five key insights that highlight the strategic growth opportunity for insurers include:

1. Financial Risks Are the Epicenter of the Protection Gap – This reflects structural financial vulnerability that traditional insurance alone has not solved.

2. Protection Risk Importance Without Preparedness Creates Anxiety and Opportunity - Consumers clearly understand what matters but consistently feel underprepared, creating a trust fault line that insurers can either ignore—or strategically address.

3. Products Work but Adoption Is the Real Problem - Consumers with the right products have 30–40-point lift in perceived preparedness highlighting that the challenge is not skepticism about value, but misalignment, timing, and relevance that limit adoption and engagement.

4. Safety Risk Is Strong, But Digital Risk Is the New Vulnerability and Opportunity - Cyber risk and identity theft represent emerging weak spots where concern materially outpaces confidence.

5. AI Is Emerging as the Bridge Between Concern and Action – Consumers are increasingly open to AI in insurance interactions, offering the opportunity to have AI help personalize risk education, simplify decisions, and guide adoption—transforming insurance from a reactive product into a proactive preparedness partnership.

In a world of rapidly shifting risks where a single uninsured event can erase years of financial progress, insurers that combine trusted products and services with AI-enabled education, personalization, and service will be best positioned to help consumers move from concern to confidence, deepen relationships and loyalty, and drive sustainable growth in the Intelligent Era of Insurance.

Read the full report here: Closing the Insurance Protection Gap: How Generational Differences in Risk, Readiness, and Coverage Are Redefining Insurance Business Value.

About Majesco
Majesco isn’t just riding the AI wave – we’re leading it for the P&C, L&AH, and Pension & Retirement markets. Born in the cloud and built with an AI-native vision, we’ve reimagined the insurance and pension core as an intelligent platform that enables insurers and pension & retirement providers to move faster, see farther, and operate smarter. As leaders in intelligent SaaS solutions, we’ve embedded AI and Agentic AI throughout our robust product portfolio of core, underwriting, loss control, distribution, and digital solutions, and pension & retirement administration so our customers can reimagine their business with real-time business insights, optimized operations, and enhanced business outcomes. Everything we build is designed to strip away complexity and let our clients focus on what matters: delivering exceptional products, experiences, and long-term financial security for policyholders and plan participants.

In a world where change is constant, our native-cloud SaaS platform empowers insurers, MGAs, and pension & retirement providers with the agility to adapt to evolving risk, regulation, and market expectations, modernize operating models, and accelerate innovation at scale. With 1400+ implementations and more than 375 customers worldwide, Majesco is the AI-native solution trusted to power the future of insurance and pension & retirement. Break free from the past and build the future of insurance at www.majesco.com.