Why insurance modernization is different this time and interruptions are inevitable; and how Majesco has developed an insurance platform to support customers' entry into digital time.
The story is said to be repeated, and leading insurance managers can be forgiven for thinking about poetry, especially for the industry's type of technology. Many familiar concepts seem to recover in a different way, giving incremental rather than breakthrough progress. It may be that in some respects there is nothing new in the insurance technology sun, but the insurance industry is on the verge of genuine transformation. However, it is an opportunity for a creative re-enactment of the industry: carriers face an urgent mandate to adapt to a new digital paradigm, but they also face an unprecedented opportunity to break through past obstacles and reinvent.
Insurance companies will have important decisions to make when investing in their digital future, but the general direction of technology is not in doubt. Nor are insurance companies alone on their journey. Solution providers have taken on greater burden in the creation and composition of the resources that insurance companies need, and their role expands as the industry moves into the digital platform-based era of commerce. In this paper we will discuss how digital the insurance industry is changing, and how Majesco has responded by offering its insurance partners a cloud-based platform for Digital Insurance 2.0.
The rise of Digital Insurance 2.0
It may seem unlikely that the supply industry has now received a disturbing disruption by having experienced the Internet crime. It doesn't actually do that; What confronts the industry today is the further development of the Internet's potential. In its earlier stages, the Internet only made it possible to buy products electronically, including insurance. What we are about to see the transition from opportunity to perfection, with electronic commerce as the consumer's standard model of doing business. The set of features that now appear has doubled the Internet 2.0. With that comes insurance 2.0, with a change of customer expectations.
The digital color was made with the release of the first iPhone. With the spread of competing smart phones, almost every consumer now ̵
If a customer can claim anything at any time / anywhere, insurers have no alternative but to provide it, because if they do not want to compete – whether it is a guilty one who has developed the necessary skills or a non-traditional competitor who applies their lessons in the insurance field. What is important to understand is that Digital Insurance 2.0 is not just about day-to-day digital engagement and service for customers. The world of digital consumption means that customers will expect new categories of products and services from their insurance companies that adapt to new needs, expectations and lifestyles.
Age on the platform: Extended customer experience and market boundaries
A particular fast food restaurant boasted superior service by letting the customer "get it on your way", at a time when many companies – and indeed insurers – had the luxury of adopting an ethos which is more like "you should eat it and you will enjoy it." What real-time e-commerce enables the customer to just demand what they want, at that time and in the way they want it.
Traditional insurance products reflect the assembly line, aimed at product creation and distribution embrace in the industrial age. Within a certain risk class, a product is "one-size-fits-all" as a vehicle for the industry's expertise and structured with reference to the nature of the product, not the one buying it. At the same time, the insurers have focused on better ways to serve customers in recent decades. They have made significant investments in portals and other front-end opportunities to make insurance transactions for these one-size-fits-all products easier. While this approach optimized the traditional insurance business in recent decades, it does not meet the requirements and expectations of a new insurance period, as it leaves the nature of the business model and the insurance companies' products are sold unchanged.
This older strategy cannot survive in an on-demand world. Customers who live in the moment through their units respond to offers that meet their exact wishes and needs. The emerging paradigm for serving these customers' expectations is the platform, which can be defined briefly as a medium built to solve a customer's immediate needs (we offer a more comprehensive, insurance-specific definition later) and shift from sales to purchase focus. 19659004] Platforms connect buyers to suppliers and deliver what the customer is looking for as comfortably as possible. For example, Uber connects drivers and riders, AirBnB connects hosts and guests, and Amazon is a massive directory platform for connecting consumers with a wide range of merchants. The score is not a means for production but the means for connection and the result is not only an increase in customer expectations but rather an expansion of market boundaries.
A given platform solves customer demand, but collectively the platform parameter changes how customers think about trading. Previously, customers were happy to buy music albums without expecting them to love each track. Today, they can only buy the tracks they love – and they do. The doctrine for insurers is that customers will inevitably ask, "If we can break up albums, why can't we break up the covers?"
The Threat of Digital Operating Models
This is already happening with platforms such as Zhong An, Slice or Trov provide coverage for the very moment a private homeowner becomes host, or when a car owner becomes a commercial vehicle operator or when a valuable property , as a jewelry or musical instrument, is taken out of the home and is at risk of loss, theft or damage.
The emerging paradigm presents insurers with a variety of challenges, threats and of course opportunities. The new customer expectations that arise on the Internet have become exponentially more demanding in the platform age, and poor customer experience is more expensive because the "mouth" travels at the speed of light – potentially viral. New digital models of InsurTech MGAs and operators work freely through older business processes and technologies and on extremely competitive cost structures because they are clouds and SaaS-based. The IoT case has opened up the possibility for insurance companies to monitor policyholders' assets in real time and insurance companies have begun to move – as Chubb recently announced – from the traditional "repair and replacement" remuneration model to one of "Predict and Prevent."
The broader insurance business shows how the insurance companies are and that points to the insurance platform model. Prior to 2015, the insurance companies typically had some form of internal innovation organization or a laboratory for studying and experimenting with new technologies that focused on the internal insurance process pressure points . Before 2016, the industry had received FinTech's designs and began to participate in or initiate accelerators and invest in startups. The InsurTech business was acknowledging that the industry simply couldn't hold on to the rapid pace of changing customer needs on its own. In contrast, InsurTech focused on startups on external customer pressure points over the value chain through product innovation. These distinctly different focus areas reflect the greatest threat and challenge the insurer's face – focusing on internal needs rather than the needs of the market – and the recognition that industry is on the verge of transformation through a period of experimentation, with those learning  InsurTech's lessons
However, it may also happen that the InsurTech movement is also a way to pay lip service to changes insurance companies do not really understand, a way to throw money at a problem and hope for the best. Many remain engaged in older business thinking, focused on internal operating pressure points instead of external customer pressure points. It is not the case that they have not undertaken to go on the road for innovation – and in fact the insurers have come a long way since the beginning of the internet. The problem is that they think they are moving faster than they are. And even when the insurers have a sense of their destination, there is a gap between what they know and what they actually do.
As with the dot-com time, insurance companies too often insure InsurTech as a means of making existing internal processes more efficient. But as discussed above, the current technical moment is a matter of differences in nature, not just of degree. Ears of Digital Insurance 2.0 require us to erase the idea that we can lighten our organizations in the new era with minor adjustments because the market is changing so quickly and opportunities can go quickly. The demands for agility, speed and innovation are dramatically different at the end of this decade compared to many before that. Insurance companies have the right to continue optimizing existing business processes, but they must immediately embrace the need to create new business models, new products, and value-added services.
Next Steps for Nuclear Insurance Systems
During the 2000s, insurance companies moved from home-grown nuclear treatment systems. They began adopting configurable control-based systems with the goal of simplifying their technology environments, reducing maintenance costs and achieving higher market speed and business agility. In the middle of the decade, insurers often took a best strategy, mixed and matched policy administration, claims and billing systems.
During the 2010s, insurance companies benefited from the "integrated suite" with the core system components from a single supplier, on the basis of simplified integration and a single vendor relationship to handle. In only the last few years, insurers have begun to embrace core systems in the cloud, that is, software that is not hosted by the insurer's servers, but rather consumed as SaaS software (SaaS). Among the benefits of cloud-based core systems are reduced maintenance costs and simple upgrades, as they are implemented by the vendor in a way that is open to the insurer.
Since the 2010s, solution providers began adding a wealth of digital, data / analysis and other capabilities to their core component offerings. This was usually referred to as an "ecosystem" by partners or capabilities, but it can be seen as anticipating the insurance platform. Which insurers had purchased were policies, claims and billing systems that meet the needs of the old business paradigm – not customer systems for a new era of insurance. While the modern regulation-based systems introduced vital flexibility and efficiency, they were still focused on insurance silo and insufficient in themselves to support radical new business models. Policy, claims and billing will always be at the core of insurance, but in the digital paradigm, the insurers' core systems must be a customer system with traditional core plus additional opportunities.
This departure means a basic shift from systems to open to open, service-based technology architecture in the cloud. The set of features needed to service business models on demand is – unlike traditional insurance environments – not static in terms of its available functionality. These business models involve decomposition and redistribution of capacity to respond to more granular requirements from customers. The way in which the components can be mounted is conceptually unobstructed, but the menu is not fixed. Other components can access ad hoc according to demand.
The transition in insurance systems is then hinted at from the integrated suite-plus ecosystem, to what would be considered a broader ecosystem including traditional core components (policy, claims, invoicing) that serve as a single place for linking the insurance customer with all the services that the customer may want to consume in other words, a platform.
In our interactions with analysts and other entities, we have used the following definition of "insurance platform": a website or group of websites that give insurers and other organizations access to a wide range of services, data and other features, continuously upgraded, seamlessly , with newer technology and functionality, access via the API, which is cloud-based and designed to scale through a pricing model, flexible to aggregated heterogeneous services from multiple vendors and suited to a test-and-learning approach for new business models while supporting existing business models.
Building Majesco Digital1 st Insurance ™ Platform
We began to realize this vision of an insurance platform at Majesco over two years ago. When the platform economy developed, it became clear that the established approach to building portals and other advanced opportunities would not solve future needs. This required making some major investments from a resource and planning perspective, but the industry's direction was not in doubt. We did not contact the task in the typical review and budget process, but as a start-up experiment. We started implementing in stealth mode, with a small team needing to know in the company, to discourage all temptations to sell the offer before it was completed.
Majesco Digital1 st Insurance ™ was designed and built as a micro-service-based, multitenant cloud-based platform. It has the ability to subscribe to third-party services and real-time data sources that traditional core systems cannot effectively support, and it can be configured for different customer segments and users. It is built to support experiments and launch of new business models, with the ability to quickly scale. It is made to adapt to different cost structures, which is often the difference between success and failure in the demand economy.
Majesco Digital1 suite st Insurance ™ portfolio of solutions includes the following: 19659004] Majesco Digital1 The Platform ™ form of the Cloud-native platform offered as insurance platform as a service with pre-emptive insurance ability for both property / accident and life and annuities. We offer the platform as a 100% PaaS offer available with a 30-day low entry cost trial and no / low commitment.
Majesco Digital1 st EcoExchange ™ next generation open, yet hired partners ecosystem hub, using third-party services with a standard semantic layer for easy integration and a true "plug" -and-play "environment for both traditional and InsurTech partners. EcoExchange differs from other industry offerings in that it acts as a marketplace for subscribing to live API-based apps on demand rather than as a code listing that requires greater integration effort. Types of apps available through EcoExchange can range from a non-interactive service call entirely to a comprehensive solution that can orchestrate multiple vendor services, including interactive conversations.
Majesco Digital1 st Engagement ™ -A portfolio of integrated solutions especially for creating an improved customer experience, next-generation digital engagement in addition to the portal and mobile with insurance-specific content for personalized customer experience.
In conclusion, Majesco Digital1 st Insurance ™ solution portfolio can be presented as the next generation of solutions for the insurance industry to be able to switch to digital demand. This makes it possible for insurers to create rich customer experiences. innovate business models, products and services; utilize a comprehensive third-party capacity ecosystem; capture market opportunities compete in the digital time and reinvent the insurance industry.
If that sounds ambitious, you just need to look at how the world's most successful new business works. The digital, requested trading model is not a hug and insurers who are determined to succeed in the long term realize that they must interfere before someone else does it for them.
However, insurers should see it as an opportunity to reinvent their companies and offer products that fit how people live today, change insurers / customer relationships to a higher confidence, greater frequency, commitment and become partners to prevent loss and make policyholders completely again. . As Buckminster Fuller observed, "You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete."