Majesco, a global leader of cloud insurance software solutions for insurance business transformation, today announced the availability of a new thought leadership report, Future Trends, 8 Challenges Insurers Must Meet Now. The new report identifies signals that manifest themselves in current and emerging trends that are rushing at the insurance industry with continued intensity and speed.
While the signals are there, not everyone sees them, understands them, or responds to them. The report outlines eight central challenges and responses on how insurers must prepare and manage the changes needed in their business models, products, channels, and technology, shifting, and influencing their strategies, priorities, plans, and budgets.
Change and disruption are constant, delivering game-changing scenarios across the industry. Today we are facing new challenges including the market economics of inflation, supply chain challenges, rising interest rates, and low unemployment. We are grappling with the increased reality of societal, climate, and technology risks and their potential impact. There are a host of new risks, including: declining profitability, rising loss ratios and claims costs, increasing demand for reinsurance capacity, lower disposable incomes, and the growing talent loss with projected retirements within the industry. The rising importance and adoption of advances such as platform technologies, APIs, digital capabilities, new data sources, and advanced analytics are now crucial to industry leadership and success.
Today’s insurers face macro-economic headwinds and a growing complexity of risk, impacting their ability to grow, making capital more efficient, and reducing costs while meeting growing customer expectations which will demand they focus on optimizing and innovating their business to remain relevant and competitive,” says Denise Garth, Chief Strategy Officer at Majesco. “While we do not know what major disruption is next, we do know that we must be prepared — putting the “pedal to the metal.” Prioritizing initiatives that enable the strategy, including resources and funding, is now more important than ever.”
Even with these challenges, there is excitement about the future. Given the new signals reflected in the macroeconomic challenges, it would be tempting to pull back. Even leaders might be tempted, in an uncertain economy, to overreact by cutting back budgets, reducing technology investments, and pulling back on innovation. Recent history has proven that would be a mistake. From the dot com crash in 2000-2001, to the financial crisis of 2007-2008, the emergence of InsurTech and the COVID pandemic proved this strategy to be short-sighted. Those that continued forward and even increased investments in the face of those major market challenges leapfrogged the competition and were better prepared to respond to the next disruption.
Learn more by downloading Future Trends, 8 Challenges Insurers Must Meet Now on the website or by emailing firstname.lastname@example.org.