Majesco Research Finds U.S. Insurers Aware of the Digital Imperative but Capabilities in Early Stages
Initial priorities focused on basic operations that impact key stakeholders
New York, NY September 9, 2015: Majesco (NYSE MKT: MJCO), a global provider of core insurance software, consulting and services for insurance business transformation, today announced the results of a survey it conducted with their customers on the current state of digital strategies. The report reveals that developing digitally-enabled capabilities is a high priority, but most companies have not yet achieved meaningful levels of digital maturity. Also noted, is that insurance suffers from a perception problem with consumers due to its complexity, jargon and intangible nature. This makes it even more important for insurers to adopt new technologies to make it easier for consumers to understand, buy, own and use insurance, before new competitors disrupt the industry.
“We realize that the balance of power has indeed shifted from insurers to consumers in this digital economy, led by technology advancements and demographic shifts,” states Nimish Sankalia, Senior Vice President of Insurance Services. “Insurers are looking for digital solutions that put the focus on their stakeholders, as compared to their traditional product-centric philosophy that has led to siloed back-office operations, processes and systems. The ability to aggregate new and disparate data sources and create actionable and insightful decision-making through analytics are also cited as critical needs for digital initiatives by our carriers.”
“There’s also a need for insurance companies to think bigger – not just about using technology to improve existing processes – but to use technology to rethink their businesses entirely, to compete against outside industry competitors,” commented Denise Garth, Senior Vice President – Strategic Marketing, Industry Relations and Innovation. “We are committed to helping our customers navigate the increasing influencers of change, by providing valuable insights through our expanding Majesco Thought Leadership that can be acted on with our robust offerings of core insurance software solutions, consulting and services”.
Other key findings include:
- Respondents were nearly unanimous in their agreement that creating a strategic foundation for the future was the key driver for a digital strategy.
- Initial priorities are focused on improving operations like billing/payments, sales and marketing and eService for customers and agents, all of which were rated important by nearly 90% of the respondents.
- Improved customer satisfaction was the top ranked benefit and measure of digital success, followed closely by increasing sales and improved operational efficiency.
- Despite awareness of digital capabilities’ importance, most operations are currently weakly supported by digital technologies like mobile or portal such as billing/payments where less than 40% are fully supported and only 14% for the FNOL process.
- Over half of those surveyed characterized their company’s business analytics maturity level as basic; only 9% considered their capabilities to be advanced.
The report, “Digital Readiness in Insurance”, was based on a survey of 45 Majesco P&C and L&A customers conducted in late 2014. This report follows the release of Majesco’s research report, “Assessing the Quality of the Customer Experience”. To get a copy of either report, send an email to firstname.lastname@example.org or click here to download from Majesco’s website.
Majesco enables insurance business transformation for approximately 140 insurance customers by providing solutions which include software, consulting and services.
Our customers are insurers, MGA’s and other risk providers from the Property and Casualty, Life, Annuity and Group insurance segments worldwide. Majesco delivers proven software solutions, consulting and services in the core insurance areas such as policy, billing, claims, distribution management, BI/ analytics, digital, application management, cloud and more. For more details on Majesco, please visit www.majesco.com.
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