COVID-19 will speed up insurer tech upgrades: Majesco CEO

The head of an insurance software and data storage company says he thinks the COVID-19 crisis may lead to temporary delays in closing on some sales but strong insurtech sales later.

Adam Elsten, the chief executive officer of Majesco, told securities analysts Thursday during a conference call that he thinks insurers were thinking that they had time to modernize at a slow and steady pace.

Now, “we believe customers are likely to reallocate current and new investment as a result of the COVID-19 crisis,” Elsten said. “They will likely shift focus and move to cloud digital experience platforms, automation, efficiency and modernization.”

Majesco runs a “cloud platform,” or collection of computers, data storage services and software provided through the Internet.

Insurers’ new efforts to modernize should increase use of Majesco’s cloud platform, because the platform provides the cost and volume flexibility insurers need to support their current and future needs, Elsten said.

Majesco held the conference to go over its latest earnings with securities analysts.

The Morristown, New Jersey-based company has a fiscal year that ends March 31.

The company is reporting $3.6 million in net income for the fourth quarter of its fiscal year on $38 million in revenue, compared with $1.2 million in net income on $37 million for the comparable quarter in 2019.

Earnings included $725,000 in expenses related to mergers and acquisitions. Majesco recently completed a $12 million acquisition of InsPro, the company that runs the InsPro Enterprise insurance marketing and policy administration system.

See also:

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• How insurer innovation is supporting adjusters during the pandemic