Insurers face significant challenges in keeping up with the rapidly changing market due to outdated business models and technological infrastructure, according to Denise Garth, Chief Strategy Officer at Majesco. A recent thought leadership report by Majesco emphasizes the critical need for insurers to update or replace their technology in order to remain competitive. Failure to do so could hinder insurers from achieving profitable growth, operational efficiency, agility in market response, and the ability to offer new products and services.
Garth explains that many insurers are constrained by legacy technology, redundant systems, and resistance to change within their teams. This accumulation of technological debt is holding back insurers from reaching their full potential and staying competitive in the industry. To succeed in today’s marketplace, insurers need to prioritize speed to market, innovation, operational cost reductions, and seamless technology upgrades. Investing in the future and embracing new technologies like cloud-native architecture is essential for staying ahead in the industry. However, this transition requires strong leadership and a willingness to challenge traditional approaches to business.
By modernizing their business models and technology infrastructure, insurers can unlock optimization and foster innovation. Embracing next-generation technologies and operational models is crucial for insurers to thrive in today’s fast-paced environment. It is a strategic move that requires adaptability and a forward-thinking approach to remain competitive in the ever-changing insurance landscape.
