Majesco, a provider of AI-native and cloud-native software for the insurance industry, has released a new thought leadership report titled The Insurance Alignment Gap: Where Insurer Priorities and Customer Protection Needs Converge…and Diverge. The report is based on Majesco's latest research examining how insurer and customer perspectives diverge on key issues, adding to a growing body of industry analysis — from consultancies and analysts alike — highlighting that decades of digital investment have not yet translated into consistent gains in customer trust or satisfaction across the insurance sector.

According to the findings, insurers are prioritizing operational efficiency, profitability, core modernization, AI, and a more intelligent operating model. Meanwhile, customers are focused on affordability, financial vulnerability, preparedness, relevance, and trust. The research underscores that insurers and customers frequently view the same challenges from opposing vantage points, making it increasingly important for insurers to translate internal transformation into customer-relevant value — a challenge that has become more acute as persistent inflation and cost-of-living pressures weigh on household budgets and reshape what consumers expect from their coverage.

"The insurance industry is at a pivotal moment where enterprise transformation and customer expectations and reality can no longer evolve on separate tracks," said Denise Garth, Chief Strategy Officer at Majesco. "Insurers are modernizing to improve efficiency, competitiveness, and agility, while customers are looking for protection that feels affordable, understandable, and relevant to the risks they face every day. The result is a strategic alignment challenge, but also a powerful growth opportunity. Insurers most likely to outperform in the years ahead will be those that connect internal business transformation agendas directly to external customer value."

The report identifies meaningful areas of alignment between insurers and customers around cost pressure, product relevance, personalization, digital engagement, AI, and the need for a more proactive and protective insurance model. However, it also highlights critical disconnects in emphasis, language, and urgency. For insurers, transformation is typically framed through the lens of internal operating performance. For customers, it is experienced through the lens of financial resilience, confidence, and whether insurance genuinely helps them feel more prepared for uncertainty.

Five themes emerge as strategic opportunities for insurers:

Shared Cost Pressure, Different Realities — Insurers are tackling efficiency while customers are struggling with affordability.

Financial Risk Is the Biggest Protection Gap — Inflation, healthcare, retirement, and savings pressures are exposing major customer vulnerabilities.

Experience Is Really About Confidence — Customers want more than convenience; they want clarity, relevance, and trust.

Preparedness Is the New Value Proposition — The strongest insurers will help customers prevent, prepare for, and better avoid or navigate risk.

AI Must Deliver Visible Customer Value — AI matters most when it helps customers understand choices, close gaps, and act with confidence.

For most insurers, closing the alignment gap will require a shift from policy-centric operations and selling toward solution-centric operations and engagement. This will necessitate a redesign of the operating model and technology foundation, as well as a rethinking of customer products, services, and engagement journeys around education and preparedness rather than purchasing alone. The report also suggests that insurers may need to position insurance as part of a broader financial resilience strategy rather than a standalone transaction, potentially adopting new language, new performance measures, and new ways of defining value — an approach already being explored through emerging models such as embedded insurance, parametric coverage, and prevention-focused services.

Majesco concludes that insurers investing in cloud and AI-native technology foundations, redesigning their operating models, and framing innovation around relevance, preparedness, and trust will be best positioned to strengthen loyalty, improve competitiveness, and lead the next era of insurance.