Insurance Trends

Embracing Tomorrow: Shaping The Future Of Insurance

Top 10 trends in 2024 shaping the insurance industry

A new report from Majesco takes a detailed look at the top-of-mind issues insurers are facing as they look ahead to the upcoming year. Download the complete report here.

Morristown, NJ – November 28th, 2023 – Majesco, a global leader of cloud insurance software solutions for insurance business transformation, today announced the availability of a new thought leadership report, 10 Trends Shaping the Future of Insurance in 2024.

This new report takes a detailed look at the top-of-mind issues insurers are facing as they look ahead to the upcoming year, including a need for a change in mindset – moving beyond a legacy, internal view to one recognizing a world of continuous change that demands new technology and operating model as a foundation to adapt, innovate and deliver at speed as markets shift and change continues its relentless path forward.

 

Key Report Findings:

  • The impact that issues such as inflation, supply chain challenges, rising interest rates, declining profitability, increased loss ratios, growing loss of talent from expedited retirements, and much more are having on the insurance industry in 2024 and beyond.
  • The operational impact of legacy systems in today’s world of increasing losses, high costs, fight for talent and shifting customer needs and expectations.
  • Importance of product innovation and speed to market to close the ever changing risk environment, protection gaps, and customer expectation gaps that are continuing to grow and shift.
  • Where growth opportunities exist in different market segments and products.
  • How the explosion of advanced data and analytics – including Gen AI – will power the growth and leadership positions for insurers over the next decade.
  • Why meeting the digital demands both short and long-term will require the embracement of a next-gen architecture.

What Does The Future Hold For The Insurance Industry?

Looking toward 2024, the insurance industry will continue to face these challenging market economics, which will continue to impact overall operations. The insurance market is facing many headwinds, driven by heightened volatility in financial markets, heightened customer expectations, economic activity, and increased risk environment. Navigating this uncertainty is not for the faint of heart. It requires leaders to diligently execute their strategy and adapt where they need to remain relevant and competitive in this fast-changing market landscape. For insurers to remain financially strong and grow, they must focus on both operational and innovative areas for investment that accelerate their journey to the future.

Signals about what the future holds are in play and intensifying. The market economics of inflation, supply chain challenges, rising interest rates, and low unemployment are not abating...

“Signals about what the future holds are in play and intensifying. The market economics of inflation, supply chain challenges, rising interest rates, and low unemployment are not abating,” says Denise Garth, Chief Strategy Officer at Majesco. “Declining profitability, increased catastrophe losses, rising loss ratios, increased claims costs, rising reinsurance prices and tightening capacity, lower disposable incomes, and a growing loss of talent from an acceleration of retirements, are all converging, creating a massive wedge for change. These top 10 trends are focused on adapting to a fast-changing marketplace and crucial areas insurers must focus on and invest in. Time is of the essence. Waiting is not an option.”

Most insurers have been on a consistent quest to optimize their business, but the work has not achieved the level of operational optimization and innovation needed in today’s environment. While legacy systems may have been replaced, they were heavily customized and on-premise, leading to upgrade challenges, increased costs, limitations on digital and data capabilities, and poor user experiences for employees and customers, among other issues. The result is that it is time for a redo and adapt to the realities of today.

For insurers, there is no time like the present to alter their business strategy and their technology foundation. Moving business to next-gen cloud intelligent core platforms with embedded technologies like microservices, AI/ML models, generative AI, APIs, and digital will drive down operation expenses and plant the seeds for growth. This will ultimately lead insurers to separate themselves from the rest of the pack. Right now, priorities and decisions are being made that will influence who will emerge as winners in the next 3 to 5 years and will be sought after as partners and employers due to their ability to achieve scalability, agility, and their pivotal role in leveraging technology. These leaders will be prepared for the next major disruption, leaping forward from the competition.

Learn more by downloading 10 Trends Shaping the Future of Insurance in 2024, on the website or by emailing info@majesco.com.

 

 

 

About Majesco
Majesco is the partner P&C and L&AH insurers choose to create and deliver outstanding experiences for customers. We combine our technology and insurance experience to anticipate what is next, without losing sight of what’s important now. Over 350 insurers, from greenfields and startups to some of the world’s largest insurers, rely on Majesco’s SaaS platforms solutions of core, data, analytics, digital, and rich ecosystem of partners to create their next now.
As an industry leader, we don’t believe in managing risk by avoiding change. We embrace change, even cause it, to get and stay ahead of risk. With 900+ successful implementations we are uniquely qualified to bridge the gap between a traditional insurance industry approach and a pure digital mindset. We give customers the confidence to decide, the products to perform, and the follow-through to execute.
For more information, please visit www.majesco.com and follow us on LinkedIn.