European Insurers Turn to Partners as Challenges Mount

Rhea-AI Summary

ISG Provider Lens™ report reveals challenges facing European insurers amid ongoing crisis conditions since 2020. The report highlights increased demand for services to modernize technology and adapt to changing regulations and consumer expectations. Notably, rising claims during the pandemic, coupled with issues such as inflation, geopolitical uncertainties, and climate-related damages, have contributed to a state of 'permacrisis' within the industry. Insurers are seeking providers with expertise in consulting and transformation, while also facing a significant skills shortage exacerbated by Brexit. The report evaluates 33 providers, naming Accenture, Cognizant, and TCS as Leaders in all quadrants.

Positive

• Increased demand for modernization services highlights market opportunities.
• The report names Accenture, Cognizant, and TCS as Leaders across all service quadrants.

Negative

• Insurers face significant operational challenges due to inflation and geopolitical uncertainties.
• A skills shortage in the technology sector is hindering insurers' ability to innovate.

Crisis conditions since 2020 have increased demand for services to modernize technology, products and business models, ISG Provider Lens™ report says

LONDON--(BUSINESS WIRE)-- Insurance companies in Europe are navigating increasingly difficult business conditions with the help of service providers that understand the industry’s many challenges and partner closely with insurers, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2022 ISG Provider Lens™ Insurance Services report for Europe finds that rising claims in the early part of the COVID-19 pandemic were followed by a series of other impacts on the insurance industry, including inflation, geopolitical uncertainties, cyberattacks and property damage from climate-related disasters. Insurers in Europe and other regions now face a state of “permacrisis,” the report says.

“European insurers are facing challenging market conditions,” said Anna Medkouri, ISG partner and insurance lead in EMEA. “In addition to contending with a difficult business environment, they need better technology to adapt to new ways of working, new regulations and new consumer expectations.”

Among new, digital-native customers, preferences are shifting from commodity off-the-shelf insurance products to more personalized offerings, ISG says. Companies are working with providers to implement platforms for developing targeted products using AI and machine learning. This ongoing process requires insurers to reinvent processes, business models and even company culture, so they are seeking providers with expertise in consulting and transformation in addition to traditional BPO.

A huge skills shortage across Europe has heightened insurers’ technology challenges, the report says. Restrictions imposed through Brexit have made it harder for workers with the necessary business and technology skills to move between the U.K. and continental Europe, and most insurance companies have difficulty attracting, hiring and retaining technology talent. As a result, they are increasingly turning to BPO providers to rearchitect their workforces.

“To build new products and business models, traditional insurance companies need responsive design, swift deployment and rapid scalability,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Service providers have the knowledge and workforces to deliver those capabilities.”

The report also examines other trends affecting insurance services in Europe, including the integration of innovative startups and the gradual adoption of value-based provider contracts.

The 2022 ISG Provider Lens™ Insurance Services report for Europe evaluates the capabilities of 33 providers across three quadrants: Life and Retirement Insurance BPO Services, Property and Casualty Insurance BPO Services and Insurance ITO Services.

The report names Accenture, Cognizant and TCS as Leaders in all three quadrants. It names Genpact, Infosys and WNS as Leaders in two quadrants each. Atos, Capgemini, CGI, EXL, NTT DATA, Tech Mahindra and Wipro are named as Leaders in one quadrant each.

In addition, LTIMindtree, Tech Mahindra and Xceedance 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 EXL, Tech Mahindra and WNS.

The 2022 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, 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.

A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 800 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 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 more than 1,300 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/20230116005142/en/

Press:

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Kate Hartley, Carrot Communications for ISG

+44 (0)20 3457 6403

kate.hartley@carrotcomms.co.uk

Source: Information Services Group, Inc.

FAQ

What are the key findings of the 2022 ISG Provider Lens report for Europe for stock symbol III?

The 2022 report identifies ongoing challenges for European insurers due to inflation, geopolitical uncertainties, and a significant skills shortage in technology.

Which companies are recognized as leaders in the ISG Provider Lens report for III?

Accenture, Cognizant, and TCS are named Leaders in all three quadrants of the ISG Provider Lens report.

How has the COVID-19 pandemic impacted the insurance industry according to the ISG report for III?

The report notes increased claims and ongoing challenges such as inflation and a skills shortage, leading to a state of 'permacrisis' for insurers.

What trends are affecting insurance services in Europe as per the ISG report for stock symbol III?

Trends include the shift to personalized insurance products and the integration of innovative startups in the insurance sector.