Businesses are partnering with service providers on digital transformations to address economic, climate and customer challenges, says ISG Provider Lens™ report
SYDNEY–( BUSINESS WIRE )– Insurers in Australia and New Zealand continue to invest in new technologies and services, including artificial intelligence, to become digital-first organizations, according to a new research report released today Information services Group (ISG) (Nasdaq: NASDAQ: ), a leading global technology research and consulting firm.
The ISG Provider Lens™ Insurance Services 2024 report for Australia and New Zealand reveals that insurers in the region are undertaking digital transformations to become more efficient and comply with evolving regulations. Insurers are facing shrinking margins, with inflation and extreme weather affecting claims. Changing consumer expectations and competition from startups are forcing established companies to innovate in products and customer experiences.
Insurers in Australia and New Zealand need to move beyond legacy systems and cultures to remain competitive, said Michael Gale, partner and head of ISG Asia Pacific. Service providers are helping them make significant strides in technology.
Artificial intelligence and generative artificial intelligence are playing an increasing role as insurers in the region adopt tools for use cases such as automated claims processing, better customer interactions and predictive analytics for risk management, the report said. The analytical and execution capabilities of artificial intelligence are expected to simplify complex insurance products and enable cost optimization. However, full readiness for artificial intelligence will require the ability to cultivate and apply highly accurate data.
Property and casualty (P&C) insurers, for example, are implementing data analytics to improve risk assessment and customer segmentation, leading to better decision-making, the report said. To improve and personalize customer service, they integrate traditional and digital channels. There is a growing trend towards partnering with newer insurtech companies to drive innovation and efficiency. Business process outsourcing (BPO) providers assist P&C insurers with regulatory compliance, particularly in security and automation efforts.
Life and pension (L&R) insurers are also turning to BPO providers to meet the growing demands of policyholders, says ISG. While L&R insurance is less commonly purchased than P&C cover in Australia and New Zealand, growing economic uncertainty has led more consumers to upgrade their insurance protection.
Traditional IT outsourcing remains a large part of insurance companies’ IT budgets in Australia and New Zealand, although companies are exploring a range of strategies, including nearshoring, offshoring, insourcing and outsourcing, to address resource issues, ISG says. As they update their IT infrastructure, insurers are increasingly adopting Agile methodologies and relying on cloud-based platforms.
Digital transformation for insurers in this region will require major investments in cloud, data management and security, said Jan Erik Aase, partner and global head, ISG Provider Lens Research. ITO service providers with expertise in these areas will be important partners in this process.
The report also examines other trends affecting insurers in Australia and New Zealand, including the need for businesses to retain intellectual property rights when adopting AI and the increasing importance of controls to prevent data leakage from AI models.
For more insight into the challenges facing insurance companies in Australia and New Zealand, along with ISG’s advice on how to address them, see the ISG Provider Lens™ Focal Points briefing here.
The ISG Provider Lens™ Insurance Services 2024 report for Australia and New Zealand assesses the capabilities of 40 providers in four quadrants: BPO Life & Pensions (L&R), BPO Property & Casualty (P&C), ITO Insurance Services and ITO insurance Services ” Midmarket Next-gen.
The report is named by TCS and Technical Mahindra (NSE:) as leaders in three quadrants each. Names Cognizant (NASDAQ: ), Genpact (NYSE: ), TSA and Wipro (NYSE: ) as leaders in two quadrants each. Accenture (NYSE:), Capgemini, Cloud4C, DXC Technology (NYSE:), EXL, Fujitsu, IBM (NYSE:), Infosys (NSE:), Iron Mountain (NYSE:), Kyndryl, Publicis Sapient, Randstad (AS:) Digital, Teleperformance (EPA: ), Unisys (NYSE: ) and WNS (NYSE: ) were named as leaders in one quadrant each.
In addition, EXL, HCLTech, WNS and Xceedance were named as Rising Stars ” companies with a promising portfolio and high future potential as defined by ISG ” in each quadrant.
A customized version of the report is available from WNS.
In the area of user experience, the Persistent system was named a global ISG CX Star Performer for 2024 among insurance service providers. The persistent system received the highest customer satisfaction ratings in ISG’s Voice of the Customer survey, which is part of the ISG Star of Excellence™ program, the top quality recognition for the technology and business services industry.
The ISG Provider Lens™ Insurance Services 2024 Australia and New Zealand Report is available to subscribers or for one-off purchase on this website.
About ISG Provider Lens™ research
The ISG Provider Lens™ Quadrant research series is the only provider assessment of its kind that combines empirical data-driven research and market analysis with real-world experience and insights from ISG’s global advisory team. Businesses will find a wealth of detailed data and market analysis to help them select the right sourcing partners, while ISG’s advisors use the reports to verify their own market knowledge and make recommendations to ISG’s business clients. The survey currently covers providers offering their services globally, across Europe, as well as in the US, Canada, Mexico, Brazil, UK, France, Benelux, Germany, Switzerland, Nordics, Australia and Singapore/Malaysia, with additional markets to be added in of the future. For more information on ISG Provider Lens research, visit this website.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and consulting firm. As a trusted business partner to more than 900 clients, including more than 75 of the world’s 100 largest enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and accelerate growth. The company specializes in digital transformation services, including AI, cloud and data analytics; resource consulting; managed risk management and services; Network operator services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006 and headquartered in Stamford, Connecticut, ISG employs more than 1,600 digitally ready professionals working in more than 20 countries” a global team known for its innovative thinking, market impact, deep industry and technology expertise, and world-class research and analytical capabilities based on the most comprehensive market data in the industry. For more information, visit www.isg-one.com.
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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
Source: Information Services Group, Inc.
