To avoid extinction or irrelevancy, the business models of the past will need to quickly chart a new course to the future by leveraging a new generation of cloud business platforms.
Morristown, NJ – October 31, 2017: Continuous change in people’s behaviors and expectations, new capabilities created by advances in digital technology, and the emergence of new competitors and the blurring of market boundaries are creating tremendous new challenges – and opportunities – for the insurance industry. According to a new thought leadership report published today by Majesco, Cloud Business Platform: The Path to Digital Insurance 2.0, these forces are creating a seismic shift between the business model that worked in the past – Insurance 1.0 – and the model that is needed for the future – Insurance 2.0.
Not only do insurers need to digitize their operations to meet customer engagement expectations and needs, insurers must rapidly develop and offer innovative, customized products and services to meet the changing risk needs of their customers. Doing this requires speed to value, new capabilities and flexibility beyond what traditional core systems are capable of delivering. A new business model, Digital Insurance 2.0 that is built on a cloud business platform, is needed to succeed in this new environment.
“Today, we are seeing both the ‘deployed in the cloud’ and the ‘born in the cloud’ core insurance solutions that are a new generation of cloud platform solutions,” noted Manish Shah, Executive Vice President, Products at Majesco. “First, cloud platforms have become the option of choice for insurers looking to modernize their core systems and existing business models, and in some cases, Greenfield or startup operations that are offering digitally-enabled traditional insurance products. Second, cloud platforms are the basis of a new generation of systems based on a micro-services architecture that is needed for innovative new insurance products like on-demand and micro-insurance offerings.”
A cloud business platform is one that can run key business applications and services in order to match the reality and requirements of the current business environment. It creates a new business model paradigm marked by collaboration via data and information sharing and subscribing (not owning). As a result, traditional boundaries between insurers, partners, third-parties and even other industries are being replaced with new market dynamics that open doors to improved operations and revenue outcomes.
“The shift is toward a platform economy across all industries. Insurers are beginning to innovate new business models based in this platform economy, which enables them to leverage broad ecosystems and technology innovations such as cloud computing, artificial intelligence, machine learning, and new data sources to create a greatly enhanced customer experience,” commented Denise Garth, SVP Strategic Marketing, Industry Relations and Innovation at Majesco. ““A new generation of insurance buyers with new needs and expectations creates both a challenge and an opportunity that a platform-based 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 new thought leadership report, Cloud Business Platform: The Path to Digital Insurance 2.0, 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 majesco.com.