Majesco report urges shift from legacy models to future-ready foundations

Majesco, a provider of cloud-based insurance software, has released a new Thought Leadership report, Strategic Priorities 2025: A New Operating Business Foundation for the New Era of Insurance, which outlines why a shift away from legacy operating models and outdated technology is necessary to meet the needs of a rapidly evolving insurance market.

According to Majesco, many insurers still rely on systems and structures developed over decades, shaped by business constraints, manual processes, and long-standing organisational habits.

In many cases, technology has been added to legacy systems rather than replacing them, resulting in complicated, high-cost environments that limit efficiency and scalability.

The report suggests insurers need to reconsider core business areas — including risk selection, loss ratios, expense management, and prevention — by adopting modern tools such as Cloud platforms, APIs, AI/ML, Generative AI, and IoT. Majesco argues that these technologies can help create more adaptable operations and open the door to future innovation.

“While most insurers recognise the strategic importance of transformation, only a subset are executing at the level necessary to compete in the next era of insurance,” commented Denise Garth, Chief Strategy Officer at Majesco.

Garth continued: “We found that Laggards and Followers risk marginalisation in a marketplace increasingly dominated by fast-moving, digitally mature competitors. Without bold corrective action of aligning strategy with execution, many insurers will miss growth opportunities, experience weakened customer relevance and loyalty and suffer diminished long-term competitive and financial viability.

“Agile transformation, optimisation and innovation in insurance is not a future concept but a present-day necessity to remain competitive in the marketplace, respond to continuous change, and create a catalyst for innovation.”

Majesco highlights the growing urgency for insurers to rethink how they operate — not just by upgrading technology, but by fundamentally updating how their businesses are structured and run. Moving forward will require deliberate action and a willingness to challenge established models in favour of more agile, forward-compatible approaches.

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