U.S. Insurance Carriers Turn to Technology Platform Providers to Weather the Pandemic
Information Services Group (III) released the 2021 ISG Provider Lens™ report highlighting a surge in technology adoption among U.S. insurance carriers due to the COVID-19 pandemic. The report indicates that carriers that started their digital transformation early gained a competitive edge. Key technologies now being utilized include data analytics, artificial intelligence, and cloud-based solutions. Providers like DXC Technology and Majesco are recognized as leaders in insurance platform solutions, supporting carriers in enhancing operational efficiency and product development.
- Increased adoption of technology among U.S. insurance carriers to improve operational efficiency.
- Recognition of DXC Technology and Majesco as leaders in insurance platform solutions.
- Growing demand for process automation tools to reduce operational costs and enhance productivity.
- Adoption of low-code/no-code development techniques allowing broader employee participation in tech initiatives.
- Many carriers are still struggling to keep up with competitors who have already embraced digital transformation.
- Ongoing dependency on legacy infrastructure may hinder some insurers' agility.
ISG Provider Lens™ report finds many
The 2021 ISG Provider Lens™ Insurance Platform Solutions Report for the
“Many insurance carriers that had been lagging behind in technology adoption are now adopting and deploying technologies that will help them remain agile,” said
Modern insurance platforms are helping carriers operate more efficiently, lower costs, comply with ever-changing regulations, and accelerate the development of new products for continued growth. Traditional insurers are adopting such platforms to effectively compete with non-traditional players and startups, which often can operate more nimbly without the burden of legacy infrastructure.
Insurance platform providers are enabling carriers to harness the power of their data to create new insights and gain efficiency, the report says. Carriers are using data analytics tools to deal with an overwhelming amount of structured and unstructured data from sources including social media, sensors and telematics. Many carriers also are turning to artificial intelligence and machine learning in areas like underwriting, customer service, claims and fraud detection.
The technology tools offered by top insurance platform providers also empower workers, boost productivity, help meet regulatory mandates, and respond to the changing needs of a more demanding public, the report adds. Technologies that carriers adopted during the pandemic will help them be more competitive after the pandemic.
The report sees growing demand for process automation tools, which can reduce operational costs, increase productivity and boost reliability. Carriers also are adopting low-code or no-code development techniques, which allow employees with no technical background to create websites and apps.
In addition, platform providers are moving to cloud-based platforms that can offer several benefits, including scalability, agility and shorter project timelines, the report says. The cloud also can link carriers to a large partner ecosystem and allow them to collaborate with InsurTechs and other vendors.
The 2021 ISG Provider Lens™ Insurance Platform Solutions Report for the
The report names DXC Technology and
In addition, Appian was named a Rising Star—companies with “promising portfolios” and “high future potential,” by ISG’s definition—in two quadrants. EIS and Illumifin were named Rising Stars in one quadrant.
Customized versions of the report are available from FAST (
The 2021 ISG Provider Lens™ Insurance Platform Solutions Report for the
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
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.
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FAQ
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