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Modern insurance platforms enable rapid change



For those who remember the TV show Mod Squad which was broadcast from 1968 – 1973, you will remember how "cool and groundbreaking" it was! With Michael Cole as Peter "Pete" Cochran, Peggy Lipton as Julie Barnes, Clarence Williams III as Lincoln "Linc" Hayes and Tige Andrews as Captain Adam Greer, it was described as the hippest and first young undercover cop on television. The show took three rebellious, young social drafts and made them act as undercover detectives. They set a new standard for television crime programs – reflected in the award of awards they won – and among the many who tried to replicate their success or refer to them over the years.

One of the most iconic lines regularly used by Captain Greer was "Times Change." This statement is more relevant than ever in 2021

!

Like Mod Squad, insurance systems have been defined since the 60s and 70s when insurance solutions were introduced on the mainframe as tools or operational components. These insurance systems and processes helped. us by automating the insurance information, helping insurers to maintain order and balance while completing the value chain for customers.

Over the years, however, insurers have often added or subtracted features that were deeply tied to the core system or modified the system to fit a new purpose, to make a "mod" to the core. The issue is that mods have often been hard-coded, inflexible pieces of code that have been dated over time and created significant older debt, preventing companies from quickly adapting to change, taking advantage of new market opportunities and increasing total cost of ownership.

Fast forward to platform time and there is power in the month dification if we consider mods, not as small improvements to our current features, but as game changing activators. What happens if we imagine another type of mod – a microservice and no code / low code for improvement? What if the new modern are more flexible, interchangeable technical modifications on top of cloud-native ecosystem-compatible platforms? Instead of hard coding, they are pluggable and can overload your core functions. They can let organizations reinvent themselves, do things that were previously impossible. In some ways, plug and play digital microservices are the future of mods across many technologies.

Most importantly, this type of mods can open markets. This is the future of insurance. Insurers will remain relevant by using digital platforms and ecosystems to change what they are already doing well and constantly changing to meet customer and market needs. When they add digital features, they will mature the organization digitally and become better and better at integrating new, transformative technology.

In Majesco's latest thought-leadership report, Insurance Platforms: The Digital and No Code / Low Code Platform, we look at how important platform change is for the insurance equation. The simplifications and improvements in platforms drive insurers with a logic and features that suit the future, including:

  • Costs that better adapt to testing new programs and reaching untapped markets.
  • No code / low code features that enable business users
  • API first design that enables plug-and-play of the best and most useful features within internal and external partners.
  • A new area of ​​digital accessibility to enable greater innovation, where "the sky is the limit" and insurers are flexible and free to adapt to trends and market changes.

Leaders position their systems and processes to suit the future of insurance.

Visionary leaders see the market, customer and technology trends as a diverse opportunity for insurance – and prepare to use new data sources, reach new market segments, offer innovative new products that customers need, create exceptional customer experiences, exploit new channels and more. KPMG's latest report, 2020 CEO Outlook found that insurers' highest priorities were focused on: digitization of operations (74%); new digital business models (70%); the creation of a seamless experience (75%); and a new workforce model that empowers people with AI (66%). [i]

Majesco's research reiterated a similar sentiment, indicating that leaders are advancing with a cloud-based / low-code cloud-based platform with microservices and open APIs (64%); imagines and experiments with new digital experiences (68%); and focuses on digital ecosystems and partnerships (45%) that enable them to stay out of trends and the market.

Technology that is constantly evolving, customers' expectations and products are forcing the insurance industry to re-evaluate and rebuild its business models and business processes in order to survive in an increasingly competitive market. Digital platforms without code / low code functions will be the game changer. Companies that adopt these digital platforms for their business and business models gain a decisive advantage over competitors and accelerate their digital maturity, which is reflected in Figure 1. Companies need to develop digital features so that they can create unique and personal solutions that help them adapt to a world in a state of rapid flow.

Digital Transformation for Insurance is a journey with three steps of digital maturity – Digitize, Optimize and Innovate – to build a sustainable, competitive advantage in today's digital age.

The Multiplier Effect – Connecting Other Platforms and Ecosystems

With the breadth and speed of changing technology, customer risk needs and commitment expectations, it is almost impossible for all insurers to have or afford to acquire the resources and capacity needed to keep pace steps with change, let alone anticipate and stay ahead of them. A platform-based insurance business model that utilizes platform technology and a digital ecosystem with various third-party partner services completely removes this barrier.

Digital ecosystems offer constant points of contact with customers in simple ways by connecting to functions that enable cost-effective growth while the insurance cover approaches the customer and becomes more personal. Insurers can choose between different controlled partner apps and connect them via APIs, and with democratized programming without code / low code, business and IT users can create and modify apps to create new user experiences and offers.

With this powerful combination of resources for creating and configuring new applications, insurance companies can quickly and easily create custom MVP products, services and experiences that they can test with different market segments and quickly start and scale if they succeed, or iterate and try again if not. [19659017] Making insurance platforms "Ecosystem ready"

Another important advantage of the insurance platform is that it greatly improves the insurer's ability to "play" in other, broader ecosystems in addition to the insurance vertical. This creates a huge opportunity to both penetrate existing markets and reach or create completely new markets. It releases the potential and opportunities for insurers to reconsider their business models from the outside. At the same time, it offers an opportunity to embed insurance in assets, activities or products in other ecosystems, which creates new market opportunities for growth.

Swiss Re report, Digital ecosystems: expanding the boundaries of value creation in insurance noted that these ecosystems can be structured in broad clusters, such as "Home & Stay" and "Lifestyle" on the B2C side, and "Build / Produce "and" Deliver "on the B2B page. Within these clusters, more detailed domains can be defined, such as "Mobility" or "Transport & Logistics." Insurance fits well as a risk-reducing component in many of these ecosystem domains, such as mobility, healthcare and housing. [ii]

Insurers can connect to these ecosystems in different ways. Using mobility as an example, insurers can create a uniform policy to cover which mode of transport a customer chooses, instead of separate policies for each. As another example, an insurance company can provide risk protection services as a component of an ecosystem that provides a one-stop-shop for all the "jobs" a customer needs to make their entire mobility customer journey … "a single interaction window that eliminates friction points between the various actors in the ecosystem. ”[iii]

Majesco's primary research with car and life insurance customers confirms the market potential of looking at customers through an ecosystem lens and developing complete solutions that meet a wide range of related needs. in narrow terms: insure one or more vehicles owned or rented by one of their customers and then ensure renewal Traditional life, health and voluntary benefits Insurance companies focus on narrow (albeit very important) discs of financial protection for their customers' lifestyles. [19659002] For the customer, however, mobility and health / wealth / well cover finding a much wider range of needs, interests, expectations and tasks. At present, a customer has to go to several, different places and perform many tasks to meet his mobility and lifestyle needs. In our research, we identified 19 mobility-related needs and 14 lifelong needs, health, well-being and well-being and asked customers how useful it would be to have a single source (an app or portal) to access information and complete the tasks that required to meet these needs. In both cases, the individual needs were divided into five broader groups, all of which had great interest among all generations, as shown in Figure 2. Gen Z and Millennials saw enough value in these all-in-one services as 40% and 38 % said they would pay $ 10 a month for the mobility and lifestyle app.

Future business platforms and ecosystems will redefine the business model with an outward view and focus on continuous customer engagement. Therefore, it is very important for insurance companies to create and participate in ecosystems when planning their paths towards the future of insurance.

Insurance Digital No Code / Low Code Platforms in Action

Although insurers do not want to use any code / low code digital platforms, they may not be able to imagine how this will interact with their current development plans. Majesco has created a path that overcomes this issue by creating a flexible method for the first steps.

Insurers can start at any time on the digital maturity curve – from focusing on today's business or by creating the business for the future. Regardless, it is crucial to have a single digital platform without code / low code with rich insurance content and a robust digital ecosystem of partners to enable this journey across a wide range of business scenarios.

Majesco Digital1 st® Insurance is a next generation digital no code / low code platform to accelerate an insurer's digital journey. Majesco built Majesco Digital1st® insurance from the ground up to provide a platform to enable organizations to drive relentless innovation with speed and agility as they accelerate their journey on the digital maturity curve. We have worked with a large number of customers who use Digital1st all three steps in the digital maturation curve, which quickly provides a number of new products, services and processes on the market in various areas of digital transformation – digitize, optimize and innovate.

Yes .. times change! The question is … do you change over time? Are you accelerating your path to digital maturity? Are you ready to fit the future with low / no code digital platforms?

Read about companies using Majesco Digital1st® as their platform to digitize, optimize and innovate by downloading Majesco's latest thought-leadership report, Insurance Platforms: The Digital and No Code / Low Code Platform.


[i] “KPMG 2020 USA's CEO Outlook,” https://home.kpmg/us/en/home/insights/2020/09/us-ceo-outlook-2020.html [1965902] [194459026] ”Digital ecosystems: expand the limits of value creation in insurance, ”Swiss Re Institute, January 2019

[iii] ibid


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