AI is rapidly becoming the new divider between leaders versus followers and laggards in insurance.Insurers leading are redesigning their operational model leveraging a cloud and AI-native core technology foundation that deeply integrates AI into the business and redefines them as a frontier insurer that achieves unprecedented agility and value creation faster than traditional companies,” said Denise Garth, chief strategy officer at Majesco
Majesco announced the release of the latest Thought Leadership report, Strategic Priorities 2026: The Frontier Insurer in the Intelligent Era of Insurance, based on Majesco’s strategic priorities primary research.
The report outlines how insurers are prioritizing AI, Generative AI, and Agentic AI to meet strategic and operational priorities.
The research found a widening divide between insurer leaders, followers, and laggards reflected in isolated AI experimentation to broader business transformation powered by intelligence, automation, and redesigned operating models that leverage cloud and AI native technology.
The findings underscore that AI is a crucial component of leaders manifested as a frontier insurer in their business strategy that leads to lower expense ratios, improved operational performance, enhance customer experience, attract and retain talent, empower innovation, and long-term competitiveness.
“AI is rapidly becoming the new divider between leaders versus followers and laggards in insurance,” said Denise Garth, chief strategy officer at Majesco.
“Insurers leading are redesigning their operational model leveraging a cloud and AI-native core technology foundation that deeply integrates AI into the business and redefines them as a frontier insurer that achieves unprecedented agility and value creation faster than traditional companies. For an industry like insurance—data-intensive, regulated, highly competitive and often challenged financially—the stakes and opportunities are high, but the potential business value and outcomes are even greater.”
With rising operational costs, increased risks, talent shortages, outdated technology and profitability challenges straining insurers’ financial performance, competitiveness and growth, AI and GenAI are poised to transform every aspect of the business.
By enhancing the performance of individual business tasks, claims adjudication, underwriting, policy servicing, fraud detection—AI generates efficiencies that compound across the enterprise. What begins as isolated improvements in task execution becomes a strategic multiplier that drives competitive advantage, agility, lower expense ratios, and long-term profitability.
Key insights that highlight the strategic opportunity for insurers include:
-AI Is a Core Business Imperative – Insurers’ 2026 priorities show AI has moved to the center of enterprise strategy, with cost, efficiency, customer experience, and AI capabilities all rising together.
-Leaders Are Pulling Further Ahead – Mature insurers are pulling ahead in analytics, GenAI, Agentic AI, and applied use cases, making AI execution a growing source of competitive differentiation.
-Generative AI Is Moving into the Operational Core – GenAI is advancing fastest in servicing, claims, and underwriting, where it is helping reduce friction and expand operational capacity.
-Agentic AI Is Emerging as the Next Strategic Horizon – Agentic AI is gaining traction as insurers explore its potential to coordinate workflows, automate tasks, and support decisions at scale.
-Data Foundations Will Determine Who Scales – Long-term AI value will depend on strong data maturity, governance, integration, and risk management, not just enthusiasm for adoption.
In a market where the pace of AI maturity is accelerating and the cost of inaction is rising, insurers that invest now to modernize their core with Cloud and AI-native core technology foundations, audit their behavioral debt and redesign a scalable operating model, and embrace agent boss transformation with redesigned human-agent workflows will be best positioned to improve expense ratios, strengthen competitiveness, and lead in the intelligent era of insurance.