Europe’s Insurance Firms Strive to Foster Agility and Trust

Rhea-AI Summary

European insurers are modernizing core systems to meet growing customer demands and skepticism, according to the 2024 ISG Provider Lens™ Insurance Platform Solutions report. Legacy systems are seen as major obstacles to innovation, restricting adoption of new technologies and leading to increased IT costs and operational inefficiencies.

Insurers are turning to providers to update, upgrade, or replace outdated systems with more efficient solutions. The report highlights the potential for the insurance industry to evolve into a business-friendly ecosystem, with early adopters gaining a competitive edge. Data-driven insights are emphasized as important for identifying new risks and opportunities.

The report evaluates 31 providers across two quadrants: Life and Retirement (L&R) and Property and Casualty (P&C) Insurance Platform Solutions, naming several Leaders and Rising Stars in each category.

Positive

• Insurers modernizing core systems to enhance agility and efficiency
• Potential for insurance industry to evolve into a business-friendly ecosystem
• Data-driven insights enabling identification of new risks and opportunities
• 31 providers evaluated across two insurance platform solution quadrants

Negative

• Legacy core systems hindering innovation and technology adoption
• Increasing IT costs and operational inefficiencies due to outdated systems
• Growing customer skepticism towards insurance relevance
• Challenges in maintaining and integrating obsolete systems

Costly, outdated legacy core systems are viewed as major obstacles to innovation and growing customer expectations, ISG Provider Lens™ report says

LONDON--(BUSINESS WIRE)-- Faced with growing customer demands and skepticism, European insurers are looking to modernize their core systems in a bid to develop a more agile, efficient and policyholder-centric approach, 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 Platform Solutions report for Europe says to meet constantly shifting needs and expectations from customers, European insurers require core systems that can readily incorporate new features, enhance productivity, foster growth and remain relevant into the future. Many are turning to providers to modernize their legacy systems by either updating, upgrading or completely replacing outdated core systems with more efficient and effective solutions, the ISG report says.

“Modernizing an outmoded system can be incredibly complex,” said Thorsten Stuewe, insurance industry lead for ISG EMEA. “Providers can assist with a methodical approach that includes identifying key stakeholders, prioritizing the most vital systems and managing change effectively to ensure a successful modernization project.”

Legacy core systems are the principal obstacle to innovation within the insurance sector, restricting the capability of insurers to adopt and benefit from state-of-the-art technologies, the ISG report says. According to the report, the detrimental consequences of clinging to a legacy core can be far-reaching. Maintaining obsolete systems and addressing interoperability challenges will lead to escalating IT costs and operational inefficiencies, ISG says.

These unwelcome challenges inevitably detract from an insurer’s capacity to focus attention on critical business objectives, such as enhancing customer service, fostering growth and driving innovation, the ISG report says. According to the report, many European businesses are questioning the relevance of insurance, viewing it as an imposed purchase, one that merely provides a license for them to continue operating because of some legal liability or underlying condition.

With forward-thinking insurers implementing innovative business models, the insurance industry has the potential to evolve into an ecosystem in which other businesses can operate with ease, the ISG report says. Initiating these efforts promptly will enable early movers to gain a competitive edge in the marketplace, the report says.

“Market opportunities, consumer needs and regulatory requirements are constantly changing,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “European insurers need to be confident that their technology infrastructure will be able to adapt promptly and grow as their business does.”

The report also examines how data-driven insights can enable insurers to identify new risks and opportunities.

For more insights into the platform challenges facing the insurance industry in Europe, including meeting growing policyholder expectations and finding the right transformation partner, along with ISG’s advice for addressing them, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Insurance Platform Solutions report for Europe evaluates the capabilities of 31 providers across two quadrants: Life and Retirement (L&R) Insurance Platform Solutions and Property and Casualty (P&C) Insurance Platform Solutions.

The report names Adacta, Fadata and Sapiens as Leaders in both quadrants, while Duck Creek, DXC Technology, Guidewire, INSTANDA, Insurity, Lumera, Majesco, msg life and TCS BaNCS are named as Leaders in one quadrant each.

In addition, EIS, Genasys Tech and Peak3 (ZA Tech) are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

Customized versions of the report are available from Adacta and msg life.

The 2024 ISG Provider Lens™ Insurance Platform Solutions 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 and automation, 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 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/20240716143932/en/

Press:

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Philipp Jaensch, ISG

+49 151 730 365 76

philipp.jaensch@isg-one.com

Source: Information Services Group, Inc.

FAQ

What are European insurers doing to address customer demands according to the ISG report?

According to the ISG Provider Lens™ report, European insurers are modernizing their core systems to develop a more agile, efficient, and policyholder-centric approach. They are updating, upgrading, or replacing outdated systems with more efficient solutions to meet shifting customer needs and expectations.

How are legacy core systems affecting European insurers' innovation capabilities?

The ISG report identifies legacy core systems as the principal obstacle to innovation in the insurance sector. These outdated systems restrict insurers' ability to adopt and benefit from state-of-the-art technologies, leading to increased IT costs, operational inefficiencies, and challenges in focusing on critical business objectives like enhancing customer service and driving innovation.

What potential evolution does the ISG report suggest for the European insurance industry?

The ISG report suggests that the European insurance industry has the potential to evolve into an ecosystem where other businesses can operate with ease. Forward-thinking insurers implementing innovative business models can gain a competitive edge by initiating these efforts promptly.

Which companies were named as Leaders in the ISG Provider Lens™ Insurance Platform Solutions report for Europe?

The report names Adacta, Fadata, and Sapiens as Leaders in both Life and Retirement (L&R) and Property and Casualty (P&C) Insurance Platform Solutions quadrants. Duck Creek, DXC Technology, Guidewire, INSTANDA, Insurity, Lumera, Majesco, msg life, and TCS BaNCS are named as Leaders in one quadrant each.