Platform solutions have catalyzed the rise of new business models that leverage technology and deep customer knowledge to overcome longstanding Insurance 1.0 weaknesses
Morristown, NJ – March 1, 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, Future Trends 2018: Catalyzing the Shift to Digital Insurance 2.0, which connects key trends over the past three years to the maturing and increasingly tangible impacts of new Digital Insurance 2.0 business models, from both startup and incumbent insurers alike. The Future Trends report is available to download on the Majesco website, or you can request a copy by emailing firstname.lastname@example.org.
This year’s Future Trends report takes a deeper look at the current state of insurance disruptors across the three macro trends of people, technology and market boundaries, and how they are pressuring insurers — pushing them out of their traditional orbits and towards new models and opportunities. The report covers the need for a new insurance paradigm and discusses how organizations can move from the theoretical to the practical and toward the future. Interestingly, the trends we have tracked over the last three years are now becoming reality. These new business models are capturing the attention of the market based on real growth and on capturing market opportunities at the expense of Insurance 1.0 as well as underscoring a widening gap between incumbent Insurance 1.0 players and new Digital Insurance 2.0 players that are redefining the rules and business of insurance.
While customer demographics and expectations, emerging technologies and data, and InsurTech have been the focal point, one area that has been a catalyst for the shift to Digital Insurance 2.0 is platform solutions. The first wave of platform-based insurance business models have created innovative business models based on the platform economy framework that leverages broad ecosystems and technology innovations such as digital, cloud computing, artificial intelligence, machine learning, and new data sources to create a greatly enhanced customer experience and new sources of revenue. In each one of these spheres of disruption there is one common denominator: digital strategy and platform solutions are the keys to insurance business success. Getting out ahead of the curve is more important than ever, before the gap is too large to overcome.
“Innovative companies are rapidly changing the business assumptions, business models and go-to-market approaches for insurance through the use of a platform solution as the catalyst,” commented Denise Garth, SVP Strategic Marketing, Industry Relations and Innovation for Majesco. “Platform solutions provide them speed to value, unique customer engagement, a test and learn platform for minimal viable products and value-aligned optimized costs. Their platform solutions also catalyze digital technologies and processes, Artificial Intelligence/Cognitive, cloud computing and an ecosystem, into a powerful new force to expand capabilities and reach well beyond those of the traditional Insurance 1.0 model. They are creating new paths, energizing the market and lowering operational costs.”
The report highlights some of the significant customer experience weaknesses of Insurance 1.0 that these new business models are successfully overcoming, including low customer engagement and loyalty, product and process complexity, and increased digital behaviors leading to new risks and expectations that exceed traditional Insurance 1.0 capabilities. These new companies represent the first wave of Digital Insurance 2.0 and are themselves the catalysts for a new generation of insurance.
Insurance business transformation is a journey of change and revitalization, a renaissance of Insurance. Approximately 150 insurance companies worldwide in property and casualty/general insurance, life and annuities 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, business analytics, predictive modeling, digital platform for mobile and portal use, testing services, cloud services, bureau and content services, transformation services, consulting services and more. For more details on Majesco, please visit majesco.com.