Majesco’s New Research Report Highlights Digital Transformation by Industry Leaders with a New Era of Core Systems, Next Gen Technologies and Ecosystems
Savvy leading insurers are transforming the business to better serve customers, launch new, innovative products, expand market reach with new channels and optimize operations with technology that ultimately reshapes business with new core, next-gen technologies and ecosystems
Majesco, a global leader of cloud insurance software solutions for insurance business transformation, announced the release of Insurance Digital Transformation: A New Era of Core Systems, Next Gen Technologies and Ecosystems, a complementary report to the 2020 Strategic Priorities report launched in February. The new report dives deeper into core platform systems, next-gen technologies and ecosystems and highlights how many insurance leaders are investing in these technologies to ensure that they remain or become leaders in the future of insurance.
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“As we enter a new decade, the future of insurance is intensifying and shifting,” stated Denise Garth, SVP of Strategic Marketing, Industry Relations and Innovation at Majesco. “As customer, market and technology trends continue to disrupt and challenge insurance, understanding the current and future state of insurance and how investment in new technologies will determine success is increasingly crucial. Every aspect of the insurance business is being redefined within the context of the future – not the past. And a new era of core platform systems, next gen technologies and ecosystems are the future. Insurers must assess where they are today as compared to those leading the way in terms of these technologies, because platform and ecosystem models are accelerating the digital transformation and future of insurance today and driving change in the industry.”
Over the last decade or more, core system modernization and transformation has been painful and expensive, often running over several years and costing tens to hundreds of millions of dollars to create an on-premise customer-configured environment. These on-premise core system implementations also added layers of portals for customers and agents as well as an array of complex integrations to leverage data sources or integrate with other systems, both internal and external.
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Some key takeaways from the report:
- Core system legacy challenge remains. Overwhelmingly, L&A (40-75%) and P&C (50-60%) insurers remain on multiple non-platform solutions, a significant legacy challenge.
- Core systems rapidly move to platforms. Platforms are technically and architecturally different than on-premise “modern core” solutions. 40-75% of P&C and L&A and Group insurers are putting innovative or new products on platform solutions, a nearly 180-degree difference.
- Digital experience and Digital Experience Platforms (DXPs) are a top driver of transformation. The rapid evolution of digital strategies is challenging traditional out-of-the-box portals (both agent and customer), exposing their inability to deliver personalized engagement, support non-standardized products and easily integrate with innovative partners.
- The rise of the platform and ecosystems. New technologies and digital ecosystems are accelerating transformative change and offering opportunities to create a seamless customer experience and relationship. The gap between Leaders to Followers and Laggards in adoption of platform technologies is 27%.
- Innovative partnerships, ecosystem development and connections are gaining momentum. New business approaches and value creation are transitioning from vertical market boundaries to porous market boundaries and ecosystems . Leaders are ahead of both Followers and Laggards by 42% – 45% in embracing ecosystems and partnerships to extend value.
Visionary leaders see the market and technological trends as a many-fold opportunity for insurance — preparing to use new sources of data, reach new market segments, and offer innovative new products needed by customers with platforms, next gen technologies and ecosystems. With a digital platform foundation in place, insurers can focus on optimizing and innovating their business to compete in a new era of insurance.
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