The ISG Provider Lens™ report says AI-powered tools can address insurance industry challenges
LONDON–( BUSINESS WIRE )– An unpredictable global environment, advanced artificial intelligence and smart technologies are driving fundamental shifts in the risk landscape and insurers’ relationships with clients and regulators in Europe, according to a new research report from Information services ISG Group (Nasdaq: NASDAQ:), a leading global technology research and consulting company.
The ISG Provider Lens™ Insurance Services 2024 report for Europe notes that new AI-powered tools can address current and emerging challenges across the insurance value chain. Businesses are increasingly adopting solutions to streamline their operations, enhance service delivery and ensure compliance with new regulations.
The lingering effects of COVID-19 and the ongoing global climate crisis are contributing to a rapidly evolving risk landscape and disrupting established actuarial models,” said Thorsten Stowe, Director EMEA at ISG Insurance. The economic impacts of these forces also affect how much consumers and businesses can spend on insurance products. Insurers are now beginning to evaluate the strategic shifts that these forces will bring about.
The report says AI has evolved from a speculative concept into a transformative force in insurance, with applications such as data-driven agent profiling, predictive health analytics, and advanced fraud detection techniques. Providers are offering more specialized solutions to meet the growing demand for customization and incorporating advanced technologies such as AI/ML to improve claims processing, policy administration, and customer service.
For the European market, providers are focusing on more data-driven decision-making, predictive analytics services and helping insurers digitize their business process outsourcing to improve customer experience throughout the insurance service lifecycle.
While managed services and application data management remain important components of insurance organizations’ IT budgets, ISG research says IT outsourcing providers are expanding their portfolios to include systems integration, IT consulting services, business consulting and leveraging cutting-edge digital technologies, including Including conversational AI, improving customer engagement.
Customer experience and innovation have emerged as key competitive differentiators in the insurance industry, said Jean-Eric Assy, partner and global leader of ISG Provider Lens Research. Strategic provider partners can create tremendous value by delivering next-generation technologies, innovative business processes and insurance industry capabilities that enable cost-effective and sustainable growth.
The report also explores the need for insurance leaders to conduct a comprehensive assessment of their current regulatory position. To effectively leverage AI’s vast potential, insurers must create scalable AI infrastructures, encourage collaboration between data science and actuarial teams and support a culture of continuous innovation.
For more insights into the challenges facing insurers in Europe, including maintaining profitability and reinventing business models, see the summary of ISG Provider Lens™ touchpoints here.
The 2024 ISG Provider Lens™ Insurance Services Report for Europe assesses the capabilities of 55 providers across five quadrants: Life & Retirement (L&R), BPO Services, Property & Casualty (P&C), BPO Services, ITO Insurance Services, and ITO Insurance Services Market Midmarket and ITO Insurance Services “Midmarket Next-Gen.
The report mentions the names of Accenture (NYSE:), Cognizant (NASDAQ:), Genpact (NYSE:), TCS and. Tech Mahindra (NSE:) as leaders in three quarters each. EXL, Sopra Steria, and WNS (NYSE:) are leaders in two quarters each. Atos, Capgemini, Charles Taylor, DXC Technology (NYSE:), Fujitsu, GFT, HCL Tech, Hexaware, Infosys (NSE:), Iron Mountain (NYSE:), Kyndryl, Mphasis, msg global solutions, NTT DATA, Publicis Sapient, Randstad (AS:) Digital, Sutherland, Unisys (NYSE:), Wipro (NYSE:) and Zuehlke were named leaders in one quarter each.
In addition, HCLTech, Sopra Steria, UST, Xceedance and Zuehlke were named as “Rising Stars” with a promising portfolio and high future potential as defined by ISG” in one quarter each.
In the field of customer experience, Fixed systems (NSE:) Named Global ISG CX Star Performance of the Year 2024 among insurance providers. Persistent Systems received the highest customer satisfaction scores in ISG’s Voice of the Customer survey, part of the ISG Star of Excellence™ program, the industry’s premier recognition of quality in technology and business services.
Customized versions of the report are available from NTT Data, WNS, and Sutherland.
The 2024 ISG Provider Lens™ Insurance Services Report for Europe is available to subscribers or for a one-time purchase on this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant is the only provider assessment of its kind that combines empirical, data-driven research and market analysis with the expertise and real-world observations of ISG’s global advisory team. Companies will find a wealth of detailed data and market analysis to help guide their selection of the right sourcing partners, while ISG consultants use the reports to validate their market knowledge and make recommendations to ISG’s institutional clients. The research currently covers providers serving globally, across Europe, as well as in the US, Canada, Mexico, Brazil, UK, France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and consulting firm. As a trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 companies, ISG is committed to helping businesses, public sector organizations, service providers and technology achieve operational excellence and faster growth. The company specializes in digital transformation services, including artificial intelligence, cloud and data analytics. Sourcing consulting; Governance and managed risk services; network carrier services; Strategy and operations design; change management; Market intelligence, research and technology analysis. Founded in 2006 and headquartered in Stamford, Connecticut, ISG employs more than 1,600 digital-ready professionals working in more than 20 countries, a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class expertise. Research and analytical capabilities based on the most comprehensive market data in the industry. For more information, visit www.isg-one.com.
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Press contacts:
Will Thoritz, ISG
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will.thoretz@isg-one.com
Philipp Jansch, ISG
+49 151 730 365 76
philipp.jaensch@isg-one.com
Source: Information Services Group, Inc
