Strategic Priorities 2025: A New Operating Business Foundation for the New Era of Insurance

Now is the time for insurers to embrace tech-driven transformation to unlock efficiency, innovation, and long-term profitable growth —

By Denise Garth & Glenn Westlake, Majesco —

Insurers have operated for decades under traditional models shaped by outdated assumptions around products, pricing, distribution channels, and customer engagement. However, shifts in customer expectations, competitive dynamics, risk profiles, and technology have revealed the inadequacy of the legacy systems they have been utilizing. Today’s insurers face mounting pressure from rising expenses and loss ratios, diminishing profitability, and growing challenges in retaining talent and meeting the demands of customers and even agents.

Most operating models were crafted over decades around a myriad of constraints and business assumptions and challenges. These constraints include redundant systems, manual workarounds necessitated by legacy technology, and teams locked into their current culture that limits what they can do. The operating model evolved to support this legacy construct, as – rather than rebuilding foundational systems – insurers have typically layered new technologies over old infrastructures, resulting in inefficient, unprofitable operations with a layered, complex technology foundation that has increased costs rather than decreasing them.

Insurers need to change the economics for loss ratios, expense ratios, risk selection, and risk prevention. It requires rethinking the business operating model and processes to leverage a wide array of amazing technologies, including Cloud, APIs, AI/ML, GenAI, IoT, and more. This will drive operational optimization and lay a foundation for innovation. It is future-focused, based on the reality of the world in which we live, and it represents smart investing, if smart investing can be defined as “that which will pay off in the future.”

Transitioning to a new operating model is necessary but is not without risks that must be addressed. First, legacy processes and business assumptions must not be allowed to leak into the new operating model and, subsequently, the technology foundation, because of a “that’s the way we have always done it” mentality. This must be countered to meet today’s realities and create operational efficiencies, speed to market, enhanced customer experiences, and more. Second, the new business model must take advantage of ground-breaking technologies, such as IoT, GenAI, next-gen cloud platforms and others, to redefine and optimize the business processes that break the old ways and offer a new paradigm shift to enable agility, scale, operational optimization, and innovation in a fast-changing market and era of risk.

The good news is that insurers are focused on creating new business models as a key priority. Growth, operational excellence, and unleashing the power of innovation and scale will be challenging and, in many ways, costly without foundational business model change. The most forward-looking insurers are proactively rethinking their operating business model and redefining how they
will do business in an era that demands new experiences, products, channels, and services. The investment in these new models is necessary to achieve market leadership and profitable growth in this new era of insurance. To get there, insurers must start today.

Read the full report to better understand:

• How newer technology can help insurers be a leader in the market and accomplish profitable growth for the short and long term.
• Why now, not tomorrow, is the time to move forward with technology transformation.
• Insurers’ plans and priorities for the fundamentals of their business, including business models, products, and distribution channels.

Access the full Thought Leadership report from Majesco to learn more about the need for a new operating business foundation: Strategic Priorities 2025: A New Operating Business Foundation for the New Era of Insurance.

About Majesco

Majesco (NASDAQ:MJCO) is the partner P&C and L&AH insurers choose to create and deliver outstanding experiences for customers. We combine our technology and insurance experience to anticipate what is next, without losing sight of what’s important now. Over 350 insurers, from MGAs, greenfields and startups to some of the world’s largest insurers and reinsurers, rely on Majesco’s intelligent SaaS platforms solutions, with GenAI powered insurance data analytics, of core, data, analytics, distribution, underwriting, loss control, digital, and rich ecosystem of partners to create their next now.

As an industry leader, we don’t believe in managing risk by avoiding change. We embrace change, even cause it, to get and stay ahead of risk. With 1000+ successful implementations and 90% of our customers in the cloud we are uniquely qualified to bridge the gap between a traditional insurance industry approach and a pure digital mindset. We give customers the confidence to decide, the products to perform, and the follow-through to execute. For more information, visit www.majesco.com.

SOURCE: Majesco