Platform-based solutions enable innovation and speed to value in a rapidly changing insurance industry
Morristown, NJ – October 18, 2018: The digital era shift is realigning fundamental elements of business that require major adjustments from insurers in order for them to survive and thrive, according to a new thought leadership report released today by Majesco (NYSE AMERICAN: MJCO), a global provider of core insurance platform software and consulting services for insurance business transformation. A new digital era of insurance focused on innovation and growth requires platform-based business models and solutions to succeed.
The report, A New Business Model for a New Era of Insurance: Digital Insurance 2.0 in the Platform and API Economy, highlights the impacts of the shift to a new age of insurance, Digital Insurance 2.0. Underpinning this new era is the shift to the application programming interface (“API”) and platform economy, which consists of key technologies such as cloud computing, open APIs, microservices, ecosystems, and data and analytics, which together help insurers create new business models, products and services, connect everything and, most importantly, create new customer experiences.
Digital Age Shift
“The digital age shift is now top of mind for every leadership team and board because it is extending an organization’s growth and innovation capabilities,” remarked Denise Garth, SVP – Strategic Marketing, Industry Relations and Innovation for Majesco. “Insurers are increasingly looking to innovate new business models based in the API and platform economy, using a new technology platform that enables them to leverage broad ecosystems, technology innovations and new data sources to create a greatly enhanced customer experience. By doing this, they are rapidly solidifying their leadership position in a new era of insurance.”
While the insurance business model has been resilient over many decades, the digital age shift is highlighting the cracks and challenges, but also great opportunities. Foundational and fundamental elements of the insurance business are changing and will require major adjustments in order to survive and thrive. The increasingly rapid pace of InsurTech growth and investment, adoption of new technologies, growth of new startups and greenfields, shifting customer needs and expectations, and innovation is creating a continuous era of change and disruption.
“The modern core systems of the last 10 to15 years designed with the focus on internal processes, operational efficiencies and modest effectiveness are being replaced by next generation core systems that are customer focused,” said Manish Shah, EVP of Products at Majesco. “Value-driven ‘next gen technology’ transforms modern core systems into decomposed core components running on the shape-to-scale platform that leverage broad ecosystems and technology innovations including microservices, API, cloud computing, artificial intelligence, machine learning, and new data sources. This empowers insurers to shift from being the ‘owners of complex systems’ to ‘owners of customer-focused solutions’ with a greater technical agility and flexibility, digital fluency, innovation and speed to value, required in today’s pace of change.”
There is an increasing urgency to create new business models based on a new flexible technology platform to capture the tremendous value in terms of the growth and innovation they can deliver. Insurers must be able to do this in weeks or a few months, rather than years. Recognizing this, A.M. Best has indicated that they will be reviewing their methodology to consider including innovation explicitly in the rating process.
The thought leadership report is available to download on the Majesco website, or you can request a copy by emailing [email protected]
Insurance business transformation is a journey of change and revitalization, a renaissance of Insurance. Approximately 160 insurance companies worldwide in P&C, L&A and Group / Employee Benefits are transforming their businesses with Majesco’s solutions. Our market leading software, consulting and services uniquely underpin the entire insurance value chain and are designed to empower insurers with the agility, innovation and speed needed to meet their transformation opportunities. Majesco’s solutions include policy management, new business / underwriting, rating, billing, claims management, distribution management, BI / analytics, predictive modeling, digital platform with mobile and portal, testing services, cloud services, bureau and content services, transformation services, consulting services and more. For more details on Majesco, please visit www.majesco.com.