Insurers’ traditional business models and technological infrastructure are ill-equipped to meet the demands of today’s rapidly evolving landscape, as noted by Denise Garth, Chief Strategy Officer at Majesco.
This sentiment is echoed in Majesco’s latest thought leadership report, which emphasises the urgent need for updates or replacements.
Failure to address these issues will hinder insurers from achieving profitable growth, operational efficiency, agility in responding to market dynamics, and the ability to offer new products and services.
Garth explains, “Most insurer’s operating models were crafted over decades around a myriad of constraints and business challenges from redundant systems to workarounds necessitated by legacy technology and teams locked into their current culture and ways of operating.
“The result is an accumulation of legacy technology debt as an off-balance-sheet burden of work to be addressed in the future that is now constraining insurers business results and competitive position.
“Competing in today’s marketplace mandates speed to market for new products, channels, and experiences; a decrease in operational costs and total cost of ownership of technology; continuous innovation; and seamless and quick technology upgrades to keep the company at the leading edge. It requires an investment in the future, not the past,” Garth concludes.
The report suggests that insurers who modernise their business models and technology infrastructure can unlock optimization and foster innovation. It underscores the importance of embracing next-generation technologies, such as cloud-native architecture, to remain competitive.
However, transitioning to these new technologies and operational models demands strong leadership and a willingness to challenge conventional approaches. Insurers must embrace change to thrive in today’s fast-paced environment.
