North American Insurers Transform Systems, Adopt AI for Adaptability
Insurance companies in North America are undergoing significant technological transformation to adapt to market challenges, according to ISG's 2024 Provider Lens™ report. The industry faces rising costs, changing customer expectations, and shrinking profit margins, with P&C insurers particularly affected by increasing natural disaster claims.
Companies are modernizing their core systems and implementing AI and automation to improve efficiency, profitability, and customer experience. Most insurers are replacing decades-old platforms for functions like underwriting and billing, while updating supporting systems for accounting and customer relationship management.
The report highlights that insurers are leveraging AI for data analysis and developing personalized, omnichannel customer support systems to compete with cloud-native startups. Leading providers in the space include Accenture, Cognizant, and EXL, named as Leaders in four quadrants of ISG's analysis.
Le compagnie assicurative in Nord America stanno attraversando una significativa trasformazione tecnologica per adattarsi alle sfide del mercato, secondo il rapporto 2024 Provider Lens™ di ISG. Il settore affronta costi crescenti, aspettative in evoluzione dei clienti e margini di profitto in contrazione, con gli assicuratori P&C particolarmente colpiti dall'aumento delle richieste di risarcimento per disastri naturali.
Le aziende stanno modernizzando i loro sistemi principali e implementando AI e automazione per migliorare l'efficienza, la redditività e l'esperienza del cliente. La maggior parte degli assicuratori sta sostituendo piattaforme vecchie di decenni per funzioni come la sottoscrizione e la fatturazione, mentre aggiorna i sistemi di supporto per la contabilità e la gestione delle relazioni con i clienti.
Il rapporto evidenzia che gli assicuratori stanno sfruttando l'AI per l'analisi dei dati e sviluppando sistemi di supporto clienti personalizzati e multicanale per competere con le startup native del cloud. I principali fornitori nel settore includono Accenture, Cognizant ed EXL, nominati come Leader in quattro quadranti dell'analisi di ISG.
Las compañías de seguros en América del Norte están experimentando una transformación tecnológica significativa para adaptarse a los desafíos del mercado, según el informe 2024 Provider Lens™ de ISG. La industria enfrenta un aumento de costos, expectativas cambiantes de los clientes y márgenes de beneficio en reducción, siendo los aseguradores de P&C particularmente afectados por el incremento de reclamaciones por desastres naturales.
Las empresas están modernizando sus sistemas centrales e implementando IA y automatización para mejorar la eficiencia, la rentabilidad y la experiencia del cliente. La mayoría de los aseguradores están reemplazando plataformas de décadas de antigüedad para funciones como la suscripción y la facturación, mientras actualizan los sistemas de soporte para la contabilidad y la gestión de relaciones con los clientes.
El informe destaca que los aseguradores están aprovechando la IA para el análisis de datos y desarrollando sistemas de soporte al cliente personalizados y omnicanal para competir con las startups nativas de la nube. Los principales proveedores en este ámbito incluyen Accenture, Cognizant y EXL, nombrados como Líderes en cuatro cuadrantes del análisis de ISG.
북미의 보험사들은 시장의 도전에 적응하기 위해 중요한 기술적 변화를 겪고 있으며, 이는 ISG의 2024 Provider Lens™ 보고서에 따르면 나타납니다. 이 산업은 증가하는 비용, 변화하는 고객 기대, 축소되는 이익률에 직면해 있으며, 특히 P&C 보험사는 자연재해 청구 건수 증가로 큰 영향을 받고 있습니다.
기업들은 핵심 시스템을 현대화하고 AI와 자동화를 구현하여 효율성, 수익성 및 고객 경험을 개선하고 있습니다. 대부분의 보험사들은 인수 심사 및 청구와 같은 기능을 위해 수십 년의 구식 플랫폼을 교체하고, 회계 및 고객 관계 관리에 대한 지원 시스템을 업데이트하고 있습니다.
보고서는 보험사들이 데이터 분석을 위해 AI를 활용하고 개인화된 옴니채널 고객 지원 시스템을 개발하여 클라우드 네이티브 스타트업과 경쟁하고 있다고 강조합니다. 이 분야의 선두 공급업체로는 Accenture, Cognizant 및 EXL이 있으며, ISG의 분석에서 4개 사분면에서 리더로 지명되었습니다.
Les compagnies d'assurance en Amérique du Nord subissent une transformation technologique significative pour s'adapter aux défis du marché, selon le rapport 2024 Provider Lens™ d'ISG. L'industrie fait face à une augmentation des coûts, des attentes changeantes des clients et à des marges bénéficiaires en baisse, les assureurs P&C étant particulièrement touchés par l'augmentation des demandes de sinistres liés aux catastrophes naturelles.
Les entreprises modernisent leurs systèmes principaux et mettent en œuvre l'IA et l'automatisation pour améliorer l'efficacité, la rentabilité et l'expérience client. La plupart des assureurs remplacent des plateformes vieillissantes de plusieurs décennies pour des fonctions telles que la souscription et la facturation, tout en mettant à jour les systèmes de support pour la comptabilité et la gestion de la relation client.
Le rapport souligne que les assureurs tirent parti de l'IA pour l'analyse de données et développent des systèmes de support client personnalisés et omnicanaux afin de rivaliser avec les startups natives du cloud. Les principaux fournisseurs dans ce secteur incluent Accenture, Cognizant et EXL, nommés Leaders dans quatre quadrants de l'analyse d'ISG.
Versicherungsunternehmen in Nordamerika durchlaufen laut dem Bericht 2024 Provider Lens™ von ISG einen erheblichen technologischen Wandel, um sich an die Herausforderungen des Marktes anzupassen. Die Branche sieht sich steigenden Kosten, sich ändernden Kundenerwartungen und schrumpfenden Gewinnmargen gegenüber, wobei insbesondere P&C-Versicherer von steigenden Schadensmeldungen durch Naturkatastrophen betroffen sind.
Unternehmen modernisieren ihre Kernsysteme und implementieren KI und Automatisierung, um die Effizienz, Rentabilität und Kundenerfahrung zu verbessern. Die meisten Versicherer ersetzen jahrzehntealte Plattformen für Funktionen wie Underwriting und Abrechnung und aktualisieren unterstützende Systeme für Buchhaltung und Kundenbeziehungsmanagement.
Der Bericht hebt hervor, dass Versicherer KI für Datenanalysen nutzen und personalisierte, multichannelfähige Kundensupportsysteme entwickeln, um mit cloud-nativen Startups zu konkurrieren. Führende Anbieter in diesem Bereich sind Accenture, Cognizant und EXL, die als Marktführer in vier Quadranten der ISG-Analyse benannt wurden.
- Forward-thinking insurers implementing AI and automation for improved efficiency and profitability
- Industry-wide modernization of core insurance systems and supporting platforms
- Development of personalized, omnichannel customer support systems
- Strategic partnerships with BPO and TPA providers to enhance service delivery
- Rising costs and shrinking profit margins across the industry
- Increasing claims from severe natural disasters affecting P&C insurers
- Falling interest rates and economic uncertainty impacting L&R firms
- North American firms lagging behind Asian competitors in data modernization
Insights
The North American insurance industry is undergoing a profound technological transformation driven by multiple market pressures. Rising claims costs, particularly in P&C insurance due to climate-related disasters, combined with falling interest rates affecting L&R firms, are creating significant margin compression. The market's response through technological adoption will likely benefit Information Services Group (ISG) as a key advisory player.
Most insurance companies are now actively replacing legacy core systems - some decades old - with modern platforms that can support AI integration and automation. This represents a massive multi-year revenue opportunity for technology advisory firms like ISG. Their positioning as experts in digital transformation consulting puts them at the forefront of this industry-wide modernization wave.
The competitive landscape analysis reveals that traditional insurers are significantly behind cloud-native startups and Asian market players in AI adoption and data modernization. This gap creates an urgent need for transformation services, potentially driving increased demand for ISG's advisory services in the medium term.
The insurance sector's technological pivot represents a critical inflection point. The integration of AI and automation isn't just an upgrade - it's a complete reimagining of insurance operations. Key transformations include:
- Core system modernization for underwriting and billing
- Implementation of advanced data analytics capabilities
- Development of omnichannel customer support systems
- Integration of straight-through processing for claims
For ISG, this industry-wide transformation translates to multiple revenue streams: strategic consulting, vendor selection, implementation oversight and ongoing advisory services. The company's comprehensive coverage of 67 service providers across five quadrants positions them as a important intermediary in this massive technological overhaul.
ISG's strategic position in the insurance technology advisory space presents significant revenue potential. The company's research indicates that most North American insurers are either actively replacing core systems or planning to do so, suggesting a robust pipeline of consulting opportunities. The breadth of services required - from core platform migration to ecosystem strategy and AI implementation - points to potentially longer engagement cycles and higher contract values.
With a market cap of
Established companies modernize software, data management to stay relevant as climate change, new competitors shake up business models, ISG Provider Lens™ report says
The 2024 ISG Provider Lens™ Insurance Services report for
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,
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
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
The 2024 ISG Provider Lens™ Insurance Services report for
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
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
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
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Source: Information Services Group, Inc.
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