AI Revolutionizes Insurance Industry Globally: Adapting to New Challenges

AI Transforming European Insurance Industry: ISG By Investing.com

ISG Provider Lens™ report says AI-powered tools can tackle insurance industry challenges LONDON--(BUSINESS WIRE)--An unpredictable global environment and advancing AI and intelligent technologies are driving fundamental shifts in the risk landscape and insurers' relationships with clients and regulators in Europe, says a new research report from Information Services Group (ISG) (Nasdaq: NASDAQ:III), a leading global technology research and advisory firm. The 2024 ISG Provider Lens™ Insurance Services report for Europe says new AI-powered tools can tackle existing and emerging challenges across the insurance value chain. Enterprises are increasingly adopting solutions to streamline their operations, enhance service delivery and ensure compliance with new regulations. The residual effects of COVID-19 and the ongoing global climate crisis are contributing to a rapidly evolving risk landscape and disrupting well-established actuarial models, said Thorsten Stüwe, EMEA director, ISG Insurance. The economic impacts of these forces are also affecting how much consumers and businesses can spend on insurance products. Insurance providers are now beginning to assess the strategy shifts these forces will effect. 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. Service providers are offering more specialized solutions to meet the evolving demand for personalization and integrating advanced technologies such as AI/ML to improve claims processing, policy administration and customer service. For the European market, service providers are focusing on more data-driven decision-making and predictive analytics services and helping insurance firms transform their business process outsourcing into digitized operations to improve customer experience throughout the insurance service lifecycle. While managed services and application data management remain significant components of insurance enterprise IT budgets, the ISG research says IT outsourcing providers are expanding their portfolios into system integration, IT advisory services and business consulting and leveraging cutting-edge digital technologies, including conversational AI, to improve customer engagement. Customer experience and innovation have emerged as key competitive differentiators in the insurance industry, said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. Strategic provider partners can create immense value by delivering next-generation technologies, innovative business processes and insurance domain capabilities that enable cost-effective and sustainable growth. The report also explores the need for insurance leaders to comprehensively evaluate their current organizational posture. To effectively leverage AI's vast potential, insurers should establish scalable AI infrastructures, encourage collaboration between data science and actuarial teams and uphold a culture of continuous innovation. For more insights into the challenges facing insurance companies in Europe, including maintaining profitability and reinventing business models, see the ISG Provider Lens™ Focal Points briefing here. The 2024 ISG Provider Lens™ Insurance Services report for Europe evaluates the capabilities of 55 providers across five quadrants: Life and Retirement (L&R) Insurance BPO Services, Property and Casualty (P&C) Insurance BPO Services, Insurance ITO Services, Insurance ITO Services " Midmarket and Insurance ITO Services " Midmarket Next-Gen. The report names Accenture (NYSE:ACN), Cognizant (NASDAQ:CTSH), Genpact (NYSE:G), TCS and Tech Mahindra (NSE:TEML) as Leaders in three quadrants each. EXL, Sopra Steria and WNS (NYSE:WNS) are Leaders in two quadrants each. Atos, Capgemini, Charles Taylor, DXC Technology (NYSE:DXC), Fujitsu, GFT, HCLTech, Hexaware, Infosys (NSE:INFY), Iron Mountain (NYSE:IRM), Kyndryl, Mphasis, msg global solutions, NTT DATA, Publicis Sapient, Randstad (AS:RAND) Digital, Sutherland, Unisys (NYSE:UIS), Wipro (NYSE:WIT) and Zuehlke are named Leaders in one quadrant each. In addition, HCLTech, Sopra Steria, UST, Xceedance and Zuehlke are named as Rising Stars " companies with a promising portfolio and high future potential by ISG's definition " in one quadrant each. In the area of customer experience, Persistent Systems (NSE:PERS) is named the global ISG CX Star Performer for 2024 among insurance services providers. Persistent Systems earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry. 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 one-time purchase on this webpage. About ISG Provider Lens™ Research The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., 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 advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world's top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries"a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry's most comprehensive marketplace data. For more information, visit www.isg-one.com.

North American Insurers Transform Systems, Adopt AI for Adaptability By Investing.com

Established companies modernize software, data management to stay relevant as climate change, new competitors shake up business models, ISG Provider Lens™ report says STAMFORD, Conn.--(BUSINESS WIRE)--Insurance enterprises in North America are integrating new technologies, including AI, to succeed in an unpredictable, rapidly changing market, according to a new research report published today by Information Services Group (ISG) (Nasdaq: NASDAQ:III), a leading global technology research and advisory firm. The 2024 ISG Provider Lens™ Insurance Services report for North America finds that the industry is grappling with rising costs, changing customer expectations and shrinking profit margins. Property and casualty (P&C) insurers need to cover growing claims from increasingly severe natural disasters, while life and retirement (L&R) firms face falling interest rates and economic uncertainty. Adaptability is key to survival, ISG says. During the COVID-19 pandemic, insurance companies that had carried out digital transformations swiftly adopted online platforms and remote work, gaining advantages over rivals. Forward-thinking insurers today are using technologies including AI and automation to improve efficiency, profitability and policyholder experience. The leading North American insurance companies are distinguishing themselves through aggressive automation, AI, digital and business innovation, said Dennis Winkler, Americas leader, Insurance, with ISG. Those that resist change risk losing market share and becoming obsolete. Most insurers in the region are replacing the systems they use for core insurance functions, such as underwriting and billing, or exploring how best to do so, ISG says. Many of these platforms are decades old, dating from a time when technical requirements and consumer demands changed more slowly. Providers can help clients migrate, but the change is a long-term project that requires extensive preparation. Along with their core platforms, companies are updating supporting systems for functions such as accounting and customer relationship management, ISG says. This can be a complex undertaking itself, requiring the right ecosystem strategy to ensure there are no gaps in a company's capabilities. Insurers are addressing this need by working with strategic consulting firms, preferring engagements that place some accountability on the provider for business outcomes. Insurance companies are beginning to use AI to derive new insights and better decision-making from huge volumes of data, ISG says. This typically requires massive data modernization projects to identify relevant information and make it usable. Most North American firms are at the early stages of this process, still behind newer insurers in other markets, such as Asia. New technologies are playing a major role in improving customer experience, the report says. Traditional insurance companies are building out personalized, omnichannel customer support systems to meet modern customer expectations and compete with cloud-native startups. Partnerships with business process outsourcing and third-party administrator (TPA) providers help insurers efficiently serve consumers' needs. Investing in advanced technology and services enables insurance companies to meet and exceed evolving market expectations, said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. It can set them up to thrive in the near term and grow and adapt in the long term. The report also explores other trends in the North American insurance industry, including the impact of increasing regulation and the growing use of straight-through processing to settle claims faster. For more insights into the challenges facing insurance companies in North America, including maintaining profitability and reinventing business models, see the ISG Provider Lens™ Focal Points briefing here. The 2024 ISG Provider Lens™ Insurance Services report for North America evaluates the capabilities of 67 providers across five quadrants: Life and Retirement (L&R) Insurance BPO Services, Property and Casualty (P&C) Insurance BPO Services, Life and Retirement (L&R) Insurance TPA Services, Insurance ITO Services, Insurance ITO Services " Midmarket and Insurance ITO Services " Midmarket Next-gen. The report names Accenture (NYSE:ACN), Cognizant (NASDAQ:CTSH) and EXL as Leaders in four quadrants each. It names Genpact (NYSE:G), Infosys (NSE:INFY), TCS and WNS (NYSE:WNS) as Leaders in three quadrants each and DXC Technology (NYSE:DXC), NTT DATA, Tech Mahindra (NSE:TEML) and Wipro (NYSE:WIT) as Leaders in two quadrants each. Capgemini, Coforge, Davies Group, Ensono, EPAM, Fujitsu, GFT, HCLTech, Hexaware, HTC Global Services, Illumifin, Iron Mountain (NYSE:IRM), Kyndryl, LTIMindtree (NSE:LTIM), Mphasis, Persistent Systems (NSE:PERS), Publicis Sapient, Randstad (AS:RAND) Digital, ReSource Pro, Sutherland, Unisys (NYSE:UIS), Xceedance, Zensar Technologies (NSE:ZENT) and Zinnia are named as Leaders in one quadrant each. In addition, Sutherland is named as a Rising Star " a company with a promising portfolio and high future potential by ISG's definition " in two quadrants. EPAM, Patra Corporation, Teleperformance (EPA:TEPRF) and Virtusa (NASDAQ:VRTU) are named as Rising Stars in one quadrant each. In the area of customer experience, Persistent system is named the global ISG CX Star Performer for 2024 among Insurance Services providers. Persistent system earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry. Customized versions of the report are available from Sutherland and WNS. The 2024 ISG Provider Lens™ Insurance Services report for North America is available to subscribers or for one-time purchase on this webpage. About ISG Provider Lens™ Research The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., 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 advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world's top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries"a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry's most comprehensive marketplace data. For more information, visit www.isg-one.com.

Insurers Embrace AI Innovations in Australia, New Zealand By Investing.com

Companies partner with service providers on digital transformations to meet economic, climate, customer service challenges, ISG Provider Lens™ report says SYDNEY--(BUSINESS WIRE)--Insurance companies in Australia and New Zealand continue to invest in new technologies and services, including AI, to become data-driven, digital-first organizations, according to a new research report published today by Information Services Group (ISG) (Nasdaq: NASDAQ:III), a leading global technology research and advisory firm. The 2024 ISG Provider Lens™ Insurance Services report for Australia and New Zealand finds that insurers in the region are carrying out digital transformations to become more efficient and comply with evolving regulations. Insurers face declining margins, with inflation and extreme weather affecting claims. Changing consumer expectations and competition from startups are forcing established firms to innovate in products and customer experiences. Insurance companies in Australia and New Zealand need to move beyond legacy systems and cultures to remain competitive, said Michael Gale, partner and head of ISG Asia Pacific. Service providers are helping them make essential leaps in technology. AI and generative AI are playing a growing role as insurers in the region adopt tools for use cases such as automated claims processing, better customer interactions and predictive analytics for risk management, the report says. The analytical and performance capabilities of AI are expected to simplify complex insurance products and enable cost optimization. However, full AI readiness will require the ability to cultivate and apply highly granular data. Property and casualty (P&C) insurers, for one, are implementing data analytics to improve risk assessment and customer segmentation, leading to better decision-making, the report says. To improve and personalize customer service, they are integrating traditional and digital channels. There is a growing trend toward partnerships with newer insurtech companies to boost innovation and efficiency. Business process outsourcing (BPO) providers are helping P&C insurers comply with regulations, especially in security and automation efforts. Life and retirement (L&R) insurers are also turning to BPO providers to meet evolving policyholder demands, ISG says. While L&R insurance is less commonly purchased than P&C coverage in Australia and New Zealand, growing economic uncertainty has led more consumers to improve their insurance protection. Traditional IT outsourcing remains a big part of insurance enterprises' IT budgets in Australia and New Zealand, though companies are exploring a range of strategies, including nearshoring, offshoring, insourcing and outsourcing, to address resource issues, ISG says. As they update IT infrastructures, insurers are increasingly adopting Agile methodologies and relying on cloud-based platforms. Digital transformation for insurers in this region will require major investments in cloud, data management and security, said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. ITO service providers with expertise in these areas will be important partners in this process. The report also examines other trends affecting insurers in Australia and New Zealand, including the need for enterprises to retain intellectual property rights when adopting AI and the growing importance of controls to prevent data leakage from AI models. For more insights into the challenges faced by insurance enterprises in Australia and New Zealand, along with ISG's advice for addressing them, see the ISG Provider Lens™ Focal Points briefing here. The 2024 ISG Provider Lens™ Insurance Services report for Australia and New Zealand evaluates the capabilities of 40 providers across four quadrants: Life and Retirement (L&R) Insurance BPO Services, Property and Casualty (P&C) Insurance BPO Services, Insurance ITO Services and Insurance ITO Services " Midmarket Next-gen. The report names TCS and Tech Mahindra (NSE:TEML) as Leaders in three quadrants each. It names Cognizant (NASDAQ:CTSH), Genpact (NYSE:G), TSA and Wipro (NYSE:WIT) as Leaders in two quadrants each. Accenture (NYSE:ACN), Capgemini, Cloud4C, DXC Technology (NYSE:DXC), EXL, Fujitsu, IBM (NYSE:IBM), Infosys (NSE:INFY), Iron Mountain (NYSE:IRM), Kyndryl, Publicis Sapient, Randstad (AS:RAND) Digital, Teleperformance (EPA:TEPRF), Unisys (NYSE:UIS) and WNS (NYSE:WNS) are named as Leaders in one quadrant each. In addition, EXL, HCLTech, WNS and Xceedance are named as Rising Stars " companies with a promising portfolio and high future potential by ISG's definition " in one quadrant each. A customized version of the report is available from WNS. In the area of customer experience, Persistent system is named the global ISG CX Star Performer for 2024 among insurance services providers. Persistent system earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, which is part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry. The 2024 ISG Provider Lens™ Insurance Services report for Australia and New Zealand is available to subscribers or for one-time purchase on this webpage. About ISG Provider Lens™ Research The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., 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 advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world's top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries"a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry's most comprehensive marketplace data. For more information, visit www.isg-one.com.

North American Insurers Transform Systems, Adopt AI for Adaptability

Established companies modernize software, data management to stay relevant as climate change, new competitors shake up business models, ISG Provider Lens™ report says Insurance enterprises in North America are integrating new technologies, including AI, to succeed in an unpredictable, rapidly changing market, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm. The 2024 ISG Provider Lens™ Insurance Services report for North America finds that the industry is grappling with rising costs, changing customer expectations and shrinking profit margins. Property and casualty (P&C) insurers need to cover growing claims from increasingly severe natural disasters, while life and retirement (L&R) firms face falling interest rates and economic uncertainty. Adaptability is key to survival, ISG says. During the COVID-19 pandemic, insurance companies that had carried out digital transformations swiftly adopted online platforms and remote work, gaining advantages over rivals. Forward-thinking insurers today are using technologies including AI and automation to improve efficiency, profitability and policyholder experience. "The leading North American insurance companies are distinguishing themselves through aggressive automation, AI, digital and business innovation," said Dennis Winkler, Americas leader, Insurance, with ISG. "Those that resist change risk losing market share and becoming obsolete." Most insurers in the region are replacing the systems they use for core insurance functions, such as underwriting and billing, or exploring how best to do so, ISG says. Many of these platforms are decades old, dating from a time when technical requirements and consumer demands changed more slowly. Providers can help clients migrate, but the change is a long-term project that requires extensive preparation. Along with their core platforms, companies are updating supporting systems for functions such as accounting and customer relationship management, ISG says. This can be a complex undertaking itself, requiring the right ecosystem strategy to ensure there are no gaps in a company's capabilities. Insurers are addressing this need by working with strategic consulting firms, preferring engagements that place some accountability on the provider for business outcomes. Insurance companies are beginning to use AI to derive new insights and better decision-making from huge volumes of data, ISG says. This typically requires massive data modernization projects to identify relevant information and make it usable. Most North American firms are at the early stages of this process, still behind newer insurers in other markets, such as Asia. New technologies are playing a major role in improving customer experience, the report says. Traditional insurance companies are building out personalized, omnichannel customer support systems to meet modern customer expectations and compete with cloud-native startups. Partnerships with business process outsourcing and third-party administrator (TPA) providers help insurers efficiently serve consumers' needs. "Investing in advanced technology and services enables insurance companies to meet and exceed evolving market expectations," said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. "It can set them up to thrive in the near term and grow and adapt in the long term." The report also explores other trends in the North American insurance industry, including the impact of increasing regulation and the growing use of straight-through processing to settle claims faster. For more insights into the challenges facing insurance companies in North America, including maintaining profitability and reinventing business models, see the ISG Provider Lens™ Focal Points briefing here. The 2024 ISG Provider Lens™ Insurance Services report for North America evaluates the capabilities of 67 providers across five quadrants: Life and Retirement (L&R) Insurance BPO Services, Property and Casualty (P&C) Insurance BPO Services, Life and Retirement (L&R) Insurance TPA Services, Insurance ITO Services, Insurance ITO Services -- Midmarket and Insurance ITO Services -- Midmarket Next-gen. The report names Accenture, Cognizant and EXL as Leaders in four quadrants each. It names Genpact, Infosys, TCS and WNS as Leaders in three quadrants each and DXC Technology, NTT DATA, Tech Mahindra and Wipro as Leaders in two quadrants each. Capgemini, Coforge, Davies Group, Ensono, EPAM, Fujitsu, GFT, HCLTech, Hexaware, HTC Global Services, Illumifin, Iron Mountain, Kyndryl, LTIMindtree, Mphasis, Persistent Systems, Publicis Sapient, Randstad Digital, ReSource Pro, Sutherland, Unisys, Xceedance, Zensar Technologies and Zinnia are named as Leaders in one quadrant each. In addition, Sutherland is named as a Rising Star -- a company with a "promising portfolio" and "high future potential" by ISG's definition -- in two quadrants. EPAM, Patra Corporation, Teleperformance and Virtusa are named as Rising Stars in one quadrant each. In the area of customer experience, Persistent system is named the global ISG CX Star Performer for 2024 among Insurance Services providers. Persistent system earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry. Customized versions of the report are available from Sutherland and WNS. The 2024 ISG Provider Lens™ Insurance Services report for North America is available to subscribers or for one-time purchase on this webpage. About ISG Provider Lens™ Research The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., 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 advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world's top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries -- a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry's most comprehensive marketplace data. For more information, visit www.isg-one.com.

North American Insurers Transform Systems, Adopt AI for Adaptability - Information Servs Gr (NASDAQ:III)

Established companies modernize software, data management to stay relevant as climate change, new competitors shake up business models, ISG Provider Lens™ report says Insurance enterprises in North America are integrating new technologies, including AI, to succeed in an unpredictable, rapidly changing market, according to a new research report published today by Information Services Group (ISG) III, a leading global technology research and advisory firm. The 2024 ISG Provider Lens™ Insurance Services report for North America finds that the industry is grappling with rising costs, changing customer expectations and shrinking profit margins. Property and casualty (P&C) insurers need to cover growing claims from increasingly severe natural disasters, while life and retirement (L&R) firms face falling interest rates and economic uncertainty. Adaptability is key to survival, ISG says. During the COVID-19 pandemic, insurance companies that had carried out digital transformations swiftly adopted online platforms and remote work, gaining advantages over rivals. Forward-thinking insurers today are using technologies including AI and automation to improve efficiency, profitability and policyholder experience. "The leading North American insurance companies are distinguishing themselves through aggressive automation, AI, digital and business innovation," said Dennis Winkler, Americas leader, Insurance, with ISG. "Those that resist change risk losing market share and becoming obsolete." Most insurers in the region are replacing the systems they use for core insurance functions, such as underwriting and billing, or exploring how best to do so, ISG says. Many of these platforms are decades old, dating from a time when technical requirements and consumer demands changed more slowly. Providers can help clients migrate, but the change is a long-term project that requires extensive preparation. Along with their core platforms, companies are updating supporting systems for functions such as accounting and customer relationship management, ISG says. This can be a complex undertaking itself, requiring the right ecosystem strategy to ensure there are no gaps in a company's capabilities. Insurers are addressing this need by working with strategic consulting firms, preferring engagements that place some accountability on the provider for business outcomes. Insurance companies are beginning to use AI to derive new insights and better decision-making from huge volumes of data, ISG says. This typically requires massive data modernization projects to identify relevant information and make it usable. Most North American firms are at the early stages of this process, still behind newer insurers in other markets, such as Asia. New technologies are playing a major role in improving customer experience, the report says. Traditional insurance companies are building out personalized, omnichannel customer support systems to meet modern customer expectations and compete with cloud-native startups. Partnerships with business process outsourcing and third-party administrator (TPA) providers help insurers efficiently serve consumers' needs. "Investing in advanced technology and services enables insurance companies to meet and exceed evolving market expectations," said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. "It can set them up to thrive in the near term and grow and adapt in the long term." The report also explores other trends in the North American insurance industry, including the impact of increasing regulation and the growing use of straight-through processing to settle claims faster. For more insights into the challenges facing insurance companies in North America, including maintaining profitability and reinventing business models, see the ISG Provider Lens™ Focal Points briefing here. The 2024 ISG Provider Lens™ Insurance Services report for North America evaluates the capabilities of 67 providers across five quadrants: Life and Retirement (L&R) Insurance BPO Services, Property and Casualty (P&C) Insurance BPO Services, Life and Retirement (L&R) Insurance TPA Services, Insurance ITO Services, Insurance ITO Services -- Midmarket and Insurance ITO Services -- Midmarket Next-gen. The report names Accenture, Cognizant and EXL as Leaders in four quadrants each. It names Genpact, Infosys, TCS and WNS as Leaders in three quadrants each and DXC Technology, NTT DATA, Tech Mahindra and Wipro as Leaders in two quadrants each. Capgemini, Coforge, Davies Group, Ensono, EPAM, Fujitsu, GFT, HCLTech, Hexaware, HTC Global Services, Illumifin, Iron Mountain, Kyndryl, LTIMindtree, Mphasis, Persistent Systems, Publicis Sapient, Randstad Digital, ReSource Pro, Sutherland, Unisys, Xceedance, Zensar Technologies and Zinnia are named as Leaders in one quadrant each. In addition, Sutherland is named as a Rising Star -- a company with a "promising portfolio" and "high future potential" by ISG's definition -- in two quadrants. EPAM, Patra Corporation, Teleperformance and Virtusa are named as Rising Stars in one quadrant each. In the area of customer experience, Persistent system is named the global ISG CX Star Performer for 2024 among Insurance Services providers. Persistent system earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry. Customized versions of the report are available from Sutherland and WNS. The 2024 ISG Provider Lens™ Insurance Services report for North America is available to subscribers or for one-time purchase on this webpage. About ISG Provider Lens™ Research The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., 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) III is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world's top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries -- a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry's most comprehensive marketplace data. For more information, visit www.isg-one.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20250120449671/en/ Press: Will Thoretz, ISG +1 203 517 3119 [email protected] Julianna Sheridan, Matter Communications for ISG +1 978-518-4520 [email protected] IIIInformation Services Group Inc$3.301.54%WatchlistOverviewMarket News and Data brought to you by Benzinga APIs