Those who do make the shift to new business models, risk not only the loss of customers, but also market share and relevance in a new age of insurance
Morristown, NJ – July 13, 2017 The digital shift is realigning fundamental elements of business that require major adjustments from insurers in order for them to survive and thrive, for which new business models represented by Greenfields or startups are key, according to a new thought leadership report published today by Majesco (NYSE MKT: MJCO), a global provider of core insurance software and consulting services for insurance business transformation. The report, Greenfields, Startups and InsurTech: Accelerating Digital Post-Age Business Models, highlights the constant pressure from startups backed by venture capital and existing insurers and reinsurers to out-do each other in the race to define new business models and processes that create a better way to “do insurance,” capture new market opportunities, create new products and services and be at the forefront of the changing market.
“Will established insurers suffer at the hands of tech-savvy, culture-savvy competition? Some may, but only if they allow themselves to,” commented Denise Garth, SVP Strategic Marketing, Industry Relations and Innovation at Majesco. “For insurance companies, the need to re-invent and transform the business is no longer a matter of if, but when. A new generation of insurance buyers with new needs and expectations creates both a challenge and an opportunity that a Greenfield and startup business model can incubate, launch and grow. The time for plans, preparation, and execution is now — recognizing that the gap is widening and the timeframe to respond is closing.”
The report notes that at the forefront is the increased momentum for InsurTech, and the Greenfields and startups within, creating high levels of activity, excitement and concern on the promise and potential of insurance disruption and reinvention. InsurTech advancements and the forces of change see no significant slowdown. The momentum for change that has been building is unstoppable. Industry advancements, cultural trends and IT reactions are gaining speed as they gain strength and a framework for stability and growth.
When you add it all up, the insurance industry has many characteristics that make it an attractive target for aggressive investments in innovation. First, its size is enormous – based on industry data it is estimated that premiums written are over $4.7 trillion globally. Second, it faces multiple challenges that offer opportunities for exploitation by nimble, efficient and innovative competitors.
Insurance is still needed by individuals and businesses to protect them and to help them manage an increasingly changing risk environment. But there is a gap between what traditional insurers are providing and what is needed in today’s rapidly changing marketplace. Enter the Greenfields, startups and incubators who are aiming to reinvent insurance. They are seeking to define new business models and processes that create a better way to “do insurance,” capture new market opportunities, create new products and services and be at the forefront of the changing market.
The new thought leadership report, Greenfields, Startups and InsurTech: Accelerating Post-Digital Age Business Models, is available on the Majesco website to download, or you can request a copy via email, firstname.lastname@example.org.
Insurance business transformation is a journey of change and revitalization, a renaissance of Insurance. Approximately 150 insurance companies worldwide in P&C, L&A and Group/ Employee Benefits are transforming their businesses with Majesco’s solutions. Our market leading software and consulting 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.