SECTOR Overview: Insurance companies are essential to Financial Services for many reasons. They bear and transfer the Risk and invest a considerable amount for utilizing the amount collected as a premium. Insurance contracts and the holding period of insurance companies for their Investment is also long with a massive volume of transactions. Therefore, the data and information of insurance contract parties are to be stored for a more extended period. Some insurance companies also have networks all over the world. MetLife and Prudential are examples. One more thing is the contract or transaction is repetitive. Somewhat similar. What Makes it necessary to seek the help of machines to Process the data, save, or keep the data for the long term. That makes their needs for IT applications different from those of banks and financial services companies. Initially, they used a punch machine for that. But as the penetration increases and insurance awareness also increases, this is useless.

As the emergence and development of computers make it easier to process and store data—that one thing attached to information Technology and insurance. There are many applications of Information Technology in insurance. However, life insurance companies need different, and public insurance companies require additional applications.

Life insurance companies need to service existing policies and send notices to all policyholders whose policies are ending. Some policies permit the policyholders to take loans. That makes more workload and paperwork for the Company. Computers make it easier to understand if there is any pattern and use it for creating new types of Schemes and finding out how many of my current customers may need Them. The computer also allows it to mine past data and use them for various needs.

Generally, insurance companies need reinsurance and coinsurance, policy management, and risk management, which are slightly different from life insurance.

Insurance companies need applications for

  • Billing
  • Premium
  • Valuation
  • Operational

And there, the role of an IT company comes into the picture.

Company overview: Majesco Limited is an IT company providing and developing Software for primary insurance and related services. Their customers are property and Casualty General Insurance, Life insurance, annuity, Pension and Group, and Employee Benefit Providers. Many products are included in the Company’s product portfolio, including  Software development, IT consulting, system integration, Application management, testing, data warehousing, business intelligence, and customer relationship management. In addition, the Company operates for policy management, claim management, and billing functions. The Company operates in many countries like the USA, Canada, UK, Thailand, Singapore, and India.

In addition, the Company offers a range of other technology-based solutions for distribution management, digital, data, and cloud that enable organizations to automate business processes across the end-to-end insurance value chain and comply with policies and regulations across their organizations.

Shareholding Pattern: BSE Data

 

Financial Performance and Ratio :  [table id=18 /]

Future Prospects: As the Company operates in diverse geography with different types of insurance products, which is their core business, it is a niche market for them. However, they have many competitors from EY, TCS, Accenture, Deloitte, etc. But in India, insurance is expected to grow faster. Moreover, as financial inclusion takes place, the demand for insurance also increases, and so does the Company’s business.