Forward-thinking leaders are optimizing and nurturing their current businesses, while also disrupting them at the same time to build their business models for the future. The result is a growing gap between Leaders, Laggards and Followers.
MORRISTOWN, N.J.--(BUSINESS WIRE)--Majesco (NASDAQ: MJCO), a global leader of cloud insurance software solutions for insurance business transformation, today announced the release of the 5th annual Strategic Priorities report, based on primary research with a cross-section of insurers. The research assesses how insurers are understanding, planning and responding to the various trends in the marketplace to modernize and optimize today's business while creating a new business for the future. The report provides a view into insurers’ readiness in a new decade and the future of insurance.
“Too often strategic planning does not yield the bold changes needed because insurers do not rapidly move from knowing to doing, creating a significant gap between leaders, followers, and laggards,” stated Denise Garth, SVP of Strategic Marketing, Industry Relations and Innovation at Majesco. “Our Strategic Priorities research over the last five years has brought clarity to this challenge. This year’s research shows an ever-widening gap that is redefining a new era of leaders.”
New in the research this year, is an assessment on where insurers are in their core system transformation, defining four options within two simple concepts: Platform and Non-Platform.
- Platform was defined as cloud-enabled, API and SaaS-based solutions or next-gen that were cloud-native, API and microservices solutions.
- Non-Platform was defined as old monolithic legacy and modern on-premise solutions.
Core system transformation has been underway for the last two decades at differing paces, with P&C leading the charge and L&A and Group just beginning. However, these transformations were primarily with modern, on-premise solutions that are Non-Platform solutions, limiting their ability to support new business models, new products, and customer experiences, leverage ecosystems, and much more. In today’s digital age, platform solutions are mandatory. We found that most companies fall short, with both P&C and L&A and Group insurers operating with Non-Platform solutions for traditional business at a staggering 60%, impacting their ability for innovation, speed and agility.
Furthermore, this year’s research highlights how Leaders have replaced legacy, expanded their channels, introduced new products and new business models, and are seeing higher growth, both in the past year and in their expectations for the next 3 years. Some key insights:
- State of the business last year was challenging for Laggards, who had a 41% gap to Leaders; and Followers, who had a 15% gap. More striking is that the expected state of the business over the next three years had even greater gaps, with Laggards and Followers falling further behind Leaders, with 62% and 21% gaps, respectively.
- Leaders are laser-focused on both speed of operations and on speed of innovation. This is reflected in their active work on legacy replacement, channel expansion, new products and new business models, whereas Followers and Laggards are primarily concerned with speed of operations.
- Leaders are creating new products and new business models at a faster rate of nearly 55% and 47% respectively – enabling them to capture market share and revenue more quickly.
- Insurers introducing innovative new products and services are more likely using Platform-based solutions in the range of 60%-70%, reflecting the growing focus on greenfields and startups.
- Leaders are expanding channels at a staggering rate of 19% higher than Followers and 88% higher than Laggards – expanding their market reach and their ability to acquire and retain customers, and revenue.
- L&A and Group insurers lag significantly behind P&C and multi-line insurers in preparation for the AM Best innovation rating, with a gap of nearly 30%. In addition, multi-line insurers outpace both P&C and L&A and Group insurers by upwards of 35% in the use of sandboxes.
These visionary leaders see the market, customer and technological trends as a many-fold opportunity for insurance — preparing to use new sources of data, reach new market segments, offer innovative new products needed by customers, create exceptional customer experiences, leverage new channels, and more. Their path forward is with a cloud-based platform utilizing microservices, open APIs, and a digital ecosystem that will allow them to stay out ahead of the trend and the marketplace.
As we enter a new decade, a picture of the future of insurance is gaining clarity. Whether you are still defining your path or you are well on your way, speed, agility and innovation are the fuel to power insurers’ growth strategies for the future of insurance. Taking action around strategy is crucial, particularly with the pace of change we continue to experience, by focusing on both optimizing today’s business and boldly creating tomorrow’s business – a two speed strategy – speed of operations and speed of innovation.
The thought leadership report is available to download on the Majesco website, or you can request a copy by emailing email@example.com.
Majesco (NASDAQ: MJCO) 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® LifePlus Solutions (AdminPlus, AdvicePlus, IllustratePlus, DistributionPlus); CloudInsurer® L&A and Group Core Suite (Policy, Billing, Claims); Digital1st Insurance™ with Digital1st eConnect™, Digital1st EcoExchange™ and Digital1st Platform™ – a cloud-native, microservices and open API platform; Distribution Management, Data and Analytics and an Enterprise Data Warehouse. For more details on Majesco, please visit www.majesco.com.
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Laura Ann Tillotson
Director, Marketing Communications & Creative Services