{"id":60876,"date":"2020-07-30T13:55:36","date_gmt":"2020-07-30T17:55:36","guid":{"rendered":"https:\/\/staging.majesco.com\/?p=60876"},"modified":"2025-09-03T12:54:15","modified_gmt":"2025-09-03T16:54:15","slug":"a-digital-wildfire-creates-a-burning-platform-for-digital-insurance-business-transformation","status":"publish","type":"post","link":"https:\/\/staging.majesco.com\/?p=60876","title":{"rendered":"A Digital Wildfire Creates a Burning Platform for Digital Insurance Business Transformation"},"content":{"rendered":"\n

While the industry had digital as a \u201cpriority\u201d in nearly every survey the last few years, the events of 2020 have accelerated its importance \u2013 creating a tipping point for insurance.  Malcolm Gladwell’s bestseller, The Tipping Point,<\/em> described this phenomenon as a \u201cmagic moment when an idea, trend, or social behavior crosses a threshold, tips, and spreads like wildfire.\u201d  We now have a \u201cDigital Wildfire\u201d expanding rapidly every day, reshaping every aspect of our customers\u2019 lives and businesses.  <\/p>\n\n\n\n

The COVID-19 crisis exposed less than desirable customer experiences due to manual, paper-bound processes, non-digital post-service transactions like claims, payments, printing, mail, a rise in online insurance purchases, and the need for extra caution due to fraud.  Projects are getting reprioritized for this and next year to adapt to this new reality.  But in that process, companies need to consider prioritizing investments in the digital platforms that will meet their needs today and the future.  <\/p>\n\n\n\n

Digital Insurance Platforms \u2013 Digital Wildfire Creates A Burning Platform<\/strong><\/h2>\n\n\n\n

We have been writing and talking about digital insurance platforms<\/a> for a few years including in our thought leadership report, Insurance Platforms \u2013 A Burning Platform for Market Leadership in the Digital Era of Insurance<\/em>.<\/a> Through our research over the last 5 years, we have found a top motivator for digital transformation is the need to meet customer and distribution channel expectations of a much-improved experience. We identified a strong intersection of business and consumer technology trends that are relevant to the insurance industry that require a new insurance platform.\u00a0 The insurance platform<\/a> lays the groundwork of a new digital insurance business model defined by a focus on customer experience, business innovation and technological leadership, with rich and robust capabilities that will enable speed to value as a digital insurer<\/a>.\u00a0<\/p>\n\n\n\n

In the Insurance Platform report, we define a platform as an architected, networked system that provides access to a broad set of services, data and other capabilities; is continuously and seamlessly upgraded with newer technology, content and functionality; is accessed via APIs that are part of a robust, extensive API catalog; enables personalized customer engagement; is cloud-based with a designed-to-scale, pay-per-use pricing model; leverages AI and machine learning through embedded capabilities; is flexible to aggregate heterogeneous services from multiple providers (technology, data, InsurTech); and enables rapid \u201ctest and learn\u201d for new business models and products while supporting current operational business models.<\/p>\n\n\n\n

Fundamentally, the insurance platform model replaces the old paradigm of the integrated suite of core insurance systems focused on transactional processing with \u201cone-size fits all\u201d portals over the core. While that approach enhanced the traditional business of insurance of the last few decades, it does not meet the demands and expectations of a new era of insurance because it leaves unchanged the nature of the business model and the products insurers sell.<\/p>\n\n\n\n

Today\u2019s next generation insurance platform uses cloud-based technology architecture to unite core insurance processing systems\u2014policy, billing, claims\u2014with advanced digital and data\/analytics capabilities and third-party services delivered via application programming interfaces (APIs) that will enable the customer-led digital transformation.  Furthermore, platforms enable innovative companies to create speed to value, unique customer engagement, a \u201ctest and learn\u201d platform for minimal viable products, and value-aligned, optimized costs.<\/p>\n\n\n\n

Digital Platforms Must Digitize, Optimize and Innovate<\/strong><\/strong><\/h2>\n\n\n\n

On June 24th<\/sup>, SMA held a virtual event (now available on video<\/a>) focused on Digital Platforms. Manish Shah, Majesco\u2019s President and Chief Product Officer spoke on our view of digital transformation in the insurance industry<\/a>, what defines a digital platform, and how Majesco Digital1st\u00ae<\/sup> Insurance<\/a> is a next-generation platform to accelerate insurer\u2019s digital journey.  We built Majesco Digital1st\u00ae Insurance from the ground up to provide ONE platform<\/strong> to enable organizations to pursue relentless innovation with speed and agility as they accelerate their journey on the digital maturity curve.<\/p>\n\n\n\n

Manish described the digital transformation journey with three main parts:<\/p>\n\n\n\n