Significant Innovation and Adoption Gaps Remain Between Insurance Leaders Versus Followers and Laggards – New Majesco Research
Important changes in insurers’ strategic priorities fueled by three digital eras in just seven short years
MORRISTOWN, N.J.–(BUSINESS WIRE)–Majesco, a global leader of cloud insurance software solutions for insurance business transformation, today announced the availability of its annual, new research report, A Seven-Year Itch: Changes in Insurer’s Strategic Priorities Defined by Three Digital Eras Over Seven Years. The report, based on primary research, underscores the market changes and industry dynamics that have shaped the direction and strategies of companies and insurers over the last seven years.
Majesco launched the first Strategic Priorities report in 2015 with the purpose of identifying the key challenges internally and externally insurers faced and their current and planned strategic initiatives for growing business. Over the last seven years, new risks emerged, customer behaviors and expectations shifted and expanded, technology-driven capabilities and data sources accelerated, channels increased, partners and ecosystems formed, unrelenting investment growth in the InsurTech market, and a pandemic fueled significant market changes. As a result, the industry has seen three different digital eras in a short seven-year period, including the Digital Disruption Era, Digital Transformation Era, and Digital Acceleration Era.
“As insurers look to keep pace and overcome the challenges throughout each of these eras, staying informed, planning ahead and executing on those plans has never been more critical,” says Denise Garth, Chief Strategy Officer at Majesco. “The changes we’ve seen over the last seven years, have created a new generation of buyers who look at everything differently and digitally. The rising importance of new innovative products, value-added services, channels, and customer experiences are only achieved through adoption of advances in next-generation platform technologies, APIs, microservices, robust digital capabilities, new/non-traditional data sources and advanced AI/ML analytics to compete in a vastly changing marketplace and new generation of buyers.”
The last seven years can be summed in one word: change. The strategic responses to these changes have redefined industry players into three categories: Leaders, Followers, and Laggards. Gaps between them remain, but the size of the gaps continue to change. Yet one thing has remained the same…Leaders, represented across all tiers, continue to accelerate the pace with a sizeable gap that sets them apart from Followers and Laggards.
This new report identifies key areas separating Leaders from Followers and Laggards:
- Leaders see the market and technological trends as a many-old opportunity for insurance. They have the evidence needed to incorporate new sources of data, reach new market segments, and offer innovative new products that are necessary and demanded by customers, creating faster, better, and smarter customer experiences.
- Leaders distinguish themselves with a stronger focus on innovation. They focus on initiatives instrumental to creating new business models, expanding distribution channels, entering new markets, adding value-added services, developing broad partner ecosystems, and developing new products by leveraging next-generation technology as a foundation and catalyst for innovation.
- Leaders establish a strong operational and technology foundation – one that brings together SaaS next-generation intelligent core insurance systems, digital experience platforms, partnerships, ecosystems and data and analytics built on a modern architecture that enables easy, rapid integration through microservices or APIs running in the cloud to drive speed to implementation, speed to market and speed to value, at scale.
- Leaders are differentiating themselves in the use of technology as a foundation to fundamentally change the business operating model and to innovate – two key aspects tracked by AM Best in their innovation ratings. Leaders retain a wide gap between Followers and Laggards over the next three years – aligning to the AM Best assessment for the industry recently published.
Majesco is the leading software partner to both the P&C and L&A insurance markets to modernize, optimize and innovate their businesses at speed and scale. Over 330 insurers, from greenfields, start-ups and MGAs to the largest insurers, reinsurers and brokers use Majesco’s next generation SaaS platform solutions of core, data, and analytics, digital, distribution, absence management and a rich ecosystem marketplace of established and InsurTech partners to build the future of insurance.
Our technology, expertise and leadership help insurers innovate and connect to build the future of their business. With over 825 successful implementations and over 65% of our customers on Cloud with Majesco platform solutions, together we have an amazing track record of innovation and real-world results. For more details on Majesco, please visit www.majesco.com.
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