This is the second blog in a series about our Fall-22 release. Over the next few months, we will continue to highlight how Majesco is helping insurers achieve relentless innovation and meet ever-changing market needs with an outside-the-box approach.
In the early days of the cloud, organizations were reluctant to adopt cloud strategies, but recent years have proven effective with cloud deployments through economies of scale. TPA and BPO business models require very high operational efficiencies to support razor-sharp margins in highly competitive spaces. While standardized processes and automation are important factors, multi-tenant SaaS platforms can significantly reduce operating costs for enterprise platforms to support business processes. Multi-tenant processing platform for TPAs, BPOs or even multi-carrier insurance companies can help reduce operating costs through common instances of processing business across multiple carriers.
Win with economies of scale
In our Fall 22 release, we introduced Majesco̵7;s Multi-Tenant L&AH Core Suite to third-party administrators and other companies processing multiple carriers, an innovative new SaaS solution that supports more than one legally separate insurance company in the same instance. We have now enhanced this platform to support policy, billing and claims administration between multiple carriers/legal firms.
TPAs have higher fixed costs for onboarding each customer because they need to acquire additional infrastructure and software licenses that often present a barrier to entry and/or expansion. Multi-tenant platforms are designed to help customers grow without incurring high onboarding costs for new customers.
This platform enables TPAs to efficiently process multiple operator trades on a single instance. It is designed to scale on a cloud infrastructure with enhanced data security that ensures reliable data separation between multiple insurance companies. This approach drastically reduces operational costs such as upgrades, technology maintenance, security compliance, compliance and more, which in turn reduces the unit cost of processing a business transaction.
Jeff Bezos famously said, “Your margin is my opportunity,” implying that Amazon delivered better prices by cutting costs. The same strategy can benefit TPAs and BPO providers if they can reduce business transaction costs by eliminating costs associated with separate entities.
Majesco L&AH Core Suite is our domain-rich, market-leading platform that can process various insurance products to support the needs of modern insurers. This innovation that enables cost reduction for businesses through multi-tenancy support should be checked out by every TPA, BPO or multi-carrier insurance company.
Do you have any additional thoughts or questions on this topic? Leave a comment or contact our product teams.