Majesco Research Highlights Continuation of Insurance Industry’s Knowing-Doing Gap and Reveals New Fissures Putting Incumbents at Risk
Insurers must become “digital insurgents” with a Digital Insurance 2.0 business model that becomes the winning strategy in the new game of insurance
Morristown, NJ – March 29, 2018: Majesco (NYSE AMERICAN: MJCO), a global provider of core insurance software and consulting services for insurance business transformation, today announced the release of a new thought leadership report, Strategic Priorities 2018: The Digital Insurance 2.0 Gap, which provides a strategic lens into the insurance industry’s awareness of and responses to the rapidly emerging digital age gaps that are driving the shift to Digital Insurance 2.0 business models.
This is the third year of the research in which survey results clearly show that insurers know and recognize the industry is changing. While there appears to be more planning and doing compared to last year, the knowing-doing gap remains relatively unchanged. At the same time, new gaps have emerged placing insurers at risk by putting them in a “holding pattern” rather than in a “forward moving” fast-paced race to the future.
“Based on this year’s survey results, we see new fissures emerging as we rapidly shift to the digital age. These expanding gaps reflect today’s market reality from multiple dimensions: knowing–doing gap, digital strategy gap, business – IT gap, and large – midsize insurer gap. These gaps add to those for customer expectations and generational differences highlighted in our most recent consumer and SMB research,” commented Denise Garth, SVP Strategic Marketing, Industry Relations and Innovation for Majesco. She added, “while the customer and industry/business gaps are creating challenges, opportunities abound for those who embrace the digital age shift to Digital Insurance 2.0. How companies respond will determine whether they are architects or victims of their future, because innovative incumbents and new entrants are challenging traditional business assumptions of Insurance 1.0 and defining Digital Insurance 2.0.”
With today’s business environment characterized by constant disruption, heavy competition and growing market and customer demands, the first wave of Digital Insurance 2.0 business models are emerging and poised for growth. They are using digital platform capabilities and ecosystems that exploit untapped markets and address under or unmet customer and risk needs that strengthen customer relationships. These companies are developing meaningful, competitive, customer-first advantages by designing and implementing new businesses on a digital platform that enable agility, innovation and speed in a world of continuous change and disruption.
In a “winner take all” digital world, rethinking decades-long business assumptions and traditional business models is mandatory. Survival and winning will require building a Digital Insurance 2.0 business model that will make today’s model obsolete.
The thought leadership report emphasizes that insurers must overcome competing priorities and continuous external change as they make the paradigm shift before the digital gap becomes too great. Continuing as fast followers by investing in only select strategic initiatives and digital capabilities that support their existing business model and different parts of the value chain (a project/bottom up approach) will not close the gap. The thought leadership report is available to download on the Majesco website, or you can request a copy by emailing firstname.lastname@example.org.
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.
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Tara Dilzer Alexander
Director, Marketing Communications and Creative Services