Leaders reflect a vastly different strategic mindset squarely focused on the future while others are stuck in the past and falling further behind.
Majesco, a global leader of cloud insurance software solutions for insurance business transformation, today announced the release of the second report from its 6th annual Strategic Priorities survey, based on post-COVID primary research with a cross-section of insurers. The report, Strategic Priorities 2021: Despite Challenges, Leaders Widen the Gap, examines the growing gaps between insurance Leaders, Followers and Laggards in their knowing, planning and doing in a range of key areas that reflect how they are modernizing and optimizing today's business while creating a new business for the future.
Knowing where an insurer is in the Knowing-Doing Gap based on this research, and how they compare to Leaders who are accelerating digital business transformation with resilient digital business models, is crucial to competing today, and also for tomorrow. Insurers must rethink and reprioritize their strategies and priorities to take advantage of the disruption, the accelerating digital shift, and the opportunities unfolding from these.
Most importantly, insurers must execute on these priorities with a sense of focus and urgency. The research shows that insurers who are more actively executing on key strategic activities have significantly higher growth as compared to those companies with lower strategic execution. Specifically, insurers are achieving higher levels of growth by:
2.1x - Reallocating resources to create their future business
1.7x - Replacing legacy with next-generation platform solutions
2.0x - Launching new products
2.3x - Expanding channels
1.6x - Developing new business models
Digital has been a priority for insurance, but 2020 brought it in sharp focus. It is now central to nearly every interaction, forcing insurers to accelerate their business and digital transformation – from years to months. The pandemic is invigorating innovation, digital transformation, and optimism for the future for Leaders, widening the gap with those left behind. These Leaders are adapting their plans and accelerating execution, finding ways to reallocate resources rather than staying the course of the past.
"The necessity of insurance digital business transformation has obliterated any lingering doubts as a result of the pandemic. With rare exception, operating digitally is the only way to do and stay in business. Leaders showed greater resiliency and adaptability to change, helping them widen the gap with the competition,"," commented Denise Garth, Chief Strategy Officer at Majesco. "What distinguishes Leaders from Followers and Laggards is their ability to focus on all of the strategic activities, even during the crisis. As a result, the pandemic crisis could be a break-out event that permanently and definitively pushes Laggards into irrelevance, tests Followers to recommit to the future, and provides Leaders a springboard to innovate and grow."
Despite the setbacks of the last year the research showed dramatically widening gap where Leaders continue to dominate with a 12% lead over Followers and a striking 64% lead over Laggards, emphasizing that leadership matters, especially during disruptive change.
The next three-year view is more dramatic, with 40% and nearly 10% gap growth for Laggards and Followers respectively. The growing gaps in looking at the previous year and the next three years reflect how Leaders are doubling down on strategic priorities that are accelerating their transformation and growth, emphasizing that speed matters for those positioning themselves as Leaders in the future of insurance.
Majesco provides technology, expertise, and leadership that helps insurers modernize, innovate, and connect to build the future of their business – and the future of insurance – at speed and scale. Our platforms connect people and businesses to insurance in ways that are innovative, hyper-relevant, compelling, and personal. Over 200 insurance companies worldwide in P&C, L&A, and Group Benefits are transforming their businesses by modernizing, optimizing, or creating new business models with Majesco. Our market-leading solutions include CloudInsurer® P&C Core Suite (Policy, Billing, Claims); CloudInsurer® L&A and Group Core Suite (Policy, Billing, Claims); L&A Insurance Data & Analytics Platform, Digital1st® Insurance with Digital1st® Engagement, Digital1st® EcoExchange, and Digital1st® Platform – a cloud-native, microservices and open API platform; Distribution Management, P&C Insurance Data & Analytics Platform, including an Enterprise Data Warehouse. For more details on Majesco, please visit www.majesco.com.
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