Companies are replacing or augmenting legacy
systems in search of product innovation, technology integration,
ISG Provider Lens™ report says
Insurance companies in North America are upgrading systems and
adopting advanced technologies to overcome the limitations of
decades-old IT platforms, 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 North America finds that evolving policyholder demands and
rapid changes in practices and methodologies are forcing insurers
to replace legacy technologies with new core systems and
software-as-a-service (SaaS) platforms. To compete, firms need new
ways to provide quotes, underwrite risks, process and settle claims
and carry out other processes.
“Outdated systems are holding North American insurers back,”
said Dennis Winkler, director, insurance industry, for ISG. “Those
that have moved decisively to modern IT infrastructure and SaaS are
unlocking their full potential.”
Further changes coming over the next decade will make agility
vital for competitiveness in North America’s life and retirement
insurance industry, ISG says. In the property and casualty
insurance industry, inflation and bigger losses from natural
disasters are likely to drive aggressive cost-cutting and
efficiency efforts.
Modern technology frameworks enable companies to better manage
risk, acquire customers and serve current policyholders’ needs, the
report says. But integrating them with legacy core platforms often
requires extensive hard coding, so some insurers are operating new
and old side by side when it is too risky to migrate existing
insurance policies. Integration issues also complicate cloud
migration if older systems cannot match the performance of
cloud-native software.
Many life and retirement insurers are integrating new and legacy
technologies via APIs, which has eased the introduction of process
automation, new services and improved customer experiences, ISG
says. Some, especially in North America, are modularizing core
systems and processes as microservices, achieving better product
customization and integration with insurance agents’ systems.
North American property and casualty insurers are the most
aggressive adopters of SaaS for core systems, the report says. Most
larger players keep older systems but adopt SaaS for new policies.
Smaller companies have largely migrated to SaaS already, especially
for faster product rollouts.
Insurance companies in North America are at the forefront of
experimentation with generative AI (GenAI), but the technology is
still in limited pilots, ISG says. If integrated into core
workflows, GenAI may help insurers improve efficiency and
productivity throughout the lifecycle of a policy.
“AI as a whole has a significant potential to improve insurance
operations,” said Jan Erik Aase, partner and global leader, ISG
Provider Lens Research. “Modernizing core systems is the first step
to enable AI adoption, so providers are helping insurers get
started on that transition.”
The report also explores other trends related to North American
insurance platforms, including the growing importance of data
modernization and the elimination of data silos.
For more insights into the technology challenges of North
American insurance companies, including the high cost of running
legacy systems and the dwindling workforce to maintain them, along
with advice on resolving those issues, see the ISG Provider Lens™
Focal Points briefing here.
The 2024 ISG Provider Lens™ Insurance Platform Solutions report
for North America evaluates the capabilities of 50 providers across
two quadrants: Life and Retirement Insurance Platform Solutions and
Property and Casualty Insurance Platform Solutions.
The report names EIS and Majesco as Leaders in both quadrants.
It names Accenture ALIP, BriteCore, Duck Creek, EXL Life Pro,
FINEOS, Guidewire, Infosys McCamish, INSTANDA, Insurity, NTT DATA
GIDP, OIPA, OneShield, Sapiens, Verisk FAST and Vitech as Leaders
in one quadrant each.
In addition, Origami Risk, Sapiens and Zinnia 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 Infosys
McCamish and Verisk FAST.
The 2024 ISG Provider Lens™ Insurance Platform Solutions 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 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 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20240712533594/en/
Press Contacts: Will Thoretz, ISG +1 203 517 3119
will.thoretz@isg-one.com Julianna Sheridan, Matter Communications
for ISG +1 978-518-4520 isg@matternow.com
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