Majesco report finds generational divide widening insurance protection gap

The biggest insurance gap Majesco sees is not a missing product. It is the widening disconnect between what customers say they value and how protected they actually feel, with financial risk now the sharpest fault line.

Majesco released its latest annual consumer research report on May 5 from Morristown, New Jersey, under the title Closing the Insurance Protection Gap: How Generational Differences in Risk, Readiness, and Coverage Are Redefining Insurance Business Value. The company, which describes itself as a global leader in cloud and AI-native insurance software for P&C and L&AH insurers, said the findings show that generational differences are changing how consumers think about risk, readiness and coverage, and that financial risks stand out as the most acute area of under-protection.

For carriers, that makes this more than a consumer education problem. It is a software and product-design problem. Majesco’s framing says the gaps are driven not only by missing products, but also by gaps in understanding, confidence, perceived relevance and value. That points directly to the systems behind onboarding, quoting, bundling and servicing. If a carrier cannot segment customers cleanly, recommend the right coverage, or explain a bundle in plain language, the protection gap only gets wider. Policy, billing, claims and digital engagement platforms have to do more than run efficiently. They need to support personalized education, faster product iteration and a buying experience that feels relevant at the moment of decision.

The generational shift is hard to miss. Majesco said Gen Z and Millennials now represent the largest cohort of buyers, overtaking Gen X and Baby Boomers. In the same research, 71% of Gen Z and Millennials said they had cut back spending and tightened budgets. Another 25% had a second job, 21% were independent contractors or gig workers, and 9% were using their vehicle for ridesharing. Those are not small lifestyle details. They change the assumptions behind auto, renters, life and supplemental coverage, especially when income is uneven and risk exposure is built into the way people work.

Majesco had already been warning about this shift in 2024, when it said consumers were nearing a tipping point because of rising insurance costs, inflation and high interest rates. Denise Garth, Majesco’s chief strategy officer, said consumer expectations had changed rapidly because of a new era of risk and macroeconomic conditions, and the company said insurers were “woefully unprepared” to meet younger consumers’ demands.

The 2026 report pushes that argument into the product roadmap. Majesco says AI can help make recommendations more personalized, transparent and responsive, turning abstract exposures like retirement shortfalls or cyber risk into concrete next steps. For insurers, the carriers that close the gap will be the ones that use data and AI to make coverage feel understandable, timely and worth buying before the next shock hits.