Research proves that insurers building the future business with new products and services, next-gen core platforms, expanding channels and new business models are leaping forward for long-term growth and relevance
Morristown, NJ February 4, 2021 – Majesco, a global leader of cloud insurance software solutions for insurance business transformation, today announced the release of the 6th annual Strategic Priorities report, based on post-COVID primary research with a cross-section of insurers. The research assesses how insurers are understanding, planning, and responding to key trends in the marketplace to modernize and optimize today's business while creating a new business for the future.
Now nearly a year after the emergence of COVID, companies – both insurers and their customers – realize it will never go back to “normal.” As a result, insurance leaders have a unique opportunity to re-envision their future of insurance today and redefine their strategies and priorities for 2021 and beyond to rapidly adapt to this change. This year’s research shows that Leaders are doing just that.
“Our 2021 Strategic Priorities research shows a dramatically widening gap between Leaders and Laggards – 64%, a year-over-year increase of 20% – when looking at their focus on key strategic initiatives in the past year. Followers were ‘treading water’ to keep even with the previous year – with a 12% gap to Leaders,” commented Denise Garth, Chief Strategy Officer at Majesco.
She added, “Even more striking and concerning is the widening gaps between Leaders and the others in their outlooks for their companies over the next three years of 102% and 28% for Laggards and Followers respectively, reflecting a 40% and nearly 10% gap growth for each. These gaps do not bode well for insurers falling behind to create economic value, grow and remain relevant with the ever-increasing pace of change and disruption. This year’s Strategic Priorities report is more important than ever for insurers to assess where they stand and how they will respond, because ‘business as usual’ is no longer a strategy in this time of dramatic change and pressure.”
Some interesting results from the research include:
- The tightness between Growth, New product changes/introductions and Expanding channels averages is less than a point (on a 10-point scale), indicating strategic alignment between these three initiatives.
- Nearly 25% of the products provided across the participating companies were new, innovative products including value-added services, on demand, shared/Gig, embedded, microinsurance and parametric products – reflecting an increasing focus on bringing new products and services to market to meet new risks, behaviors and customer demands.
- Double-digit increases between the two time periods of last year and in three years for Growth, New business models, New product changes/introductions and Core system replacement signal insurer understanding on adapting and accelerating strategic priorities for future market relevance.
- The gaps between insurers with and without program/affinity business were significant and grew, reflecting an advantage in development of ecosystems and partnerships that offer a broader customer experience and market reach to drive growth.
Compared to the other segments, Leaders reported significantly higher strategic activity and growth last year, more optimistic outlooks for the next three years and higher focus on key internal and external challenges. The results show that companies focused on the key strategic
priorities – new products, expanding channels (including ecosystems and partnerships),
new business models and next gen core platforms – are blowing away their traditional counterparts in preparing for the future of insurance.
This year’s research will be shared in two separate reports. This first report, available to download on the Majesco website or by emailing email@example.com, covers overall industry results and key differences by line of business and company sizes. The companion report, coming out in early March, will provide a deep dive into Leaders, Followers and Laggards.
Majesco provides technology, expertise, and leadership that helps insurers modernize, innovate, and connect to build the future of their business – and the future of insurance – at speed and scale. Our platforms connect people and businesses to insurance in ways that are innovative, hyper-relevant, compelling, and personal. Over 200 insurance companies worldwide in P&C, L&A, and Group Benefits are transforming their businesses by modernizing, optimizing, or creating new business models with Majesco. Our market-leading solutions include CloudInsurer® P&C Core Suite (Policy, Billing, Claims); CloudInsurer® L&A and Group Core Suite (Policy, Billing, Claims); L&A Insurance Data & Analytics Platform, Digital1st® Insurance with Digital1st® Engagement, Digital1st® EcoExchange, and Digital1st® Platform – a cloud-native, microservices and open API platform; Distribution Management, P&C Insurance Data & Analytics Platform, including an Enterprise Data Warehouse. For more details on Majesco, please visit www.majesco.com.