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Companies are partnering with service providers on digital transformation to meet economic, climate, customer service challenges, the ISG Provider Lens™ report says.
SYDNEY–(BUSINESS WIRE)–Australian and New Zealand insurance companies continue to invest in new technologies and services, including AI, to become data-driven, digital-first organizations, according to a new research report published today by Information Services Group (ISG) (Nasdaq: NASDAQ: ), a leading global research and consulting firm.
The 2024 ISG Provider Lens™ Insurance Services report for Australia and New Zealand finds that insurers in the region are making digital transformations to become more efficient and comply with changing regulations. Insurers face declining margins, with inflation and extreme weather affecting claims. Changing customer expectations and competition from startups are forcing established firms to improve products and customer experiences.
Insurance companies 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 help them make important strides in technology.
AI and generative AI are playing a growing role as insurers in the environment adopt tools for use cases such as claims automation, better customer engagement and predictive analytics for risk management , the report says. The analytical and operational capabilities of AI are expected to simplify complex insurance products and help optimize costs. However, full AI readiness will require the ability to develop and use highly granular data.
Property and Casualty (P&C) insurers, for one, are using data analytics to improve risk analysis and customer segmentation, leading to better decisions, the report says. To improve and personalize customer service, they combine traditional and digital channels. There is a growing trend to partner with new insurtech companies to drive innovation and efficiency. Business process outsourcing (BPO) providers help P&C insurers comply with regulations, especially in security and automation efforts.
Life and Retirement (L&R) insurers are also turning to BPO providers to meet the changing needs of policyholders, ISG says. Although L&R insurance is less commonly purchased than P&C cover in Australia and New Zealand, the increasing economic uncertainty has led many consumers to upgrade their insurance cover.
Traditional IT coverage is still a large part of IT insurance companies’ budgets in Australia and New Zealand, although companies are exploring a number of options, including close, hold, to invest abroad, to solve resource problems, says ISG. As they upgrade their IT infrastructure, insurers are increasingly adopting Agile methods and relying on cloud-based platforms.
Digital transformation for insurers in this area will require major investments in the cloud, data management and security, said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. ITO service providers with expertise in these areas will be valuable partners in this process.
The report also examines other trends affecting insurers in Australia and New Zealand, including the need for businesses to maintain intellectual property rights when adopting AI and the increasing importance of regulation to prevent data leakage. data from AI models.
For more information on the challenges facing insurance businesses in Australia and New Zealand, as well as 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 examines the capabilities of 40 providers across four sectors: Life and Retirement (L&R) Insurance BPO Services, Property and Casualty (P&C) BPO Services of Insurance, Insurance ITO Services and Insurance ITO. Services ” Midmarket Next-gen.
The report names TCS and Tech Mahindra (NSE:) as Leaders in three quadrants each. It 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: ) are named Leaders in the same quadrant.
In addition, EXL, HCLTech, WNS and Xceedance have been named as Rising Stars Companies ” with promising portfolio and high future as defined by ISG ” in the same quadrant.
A separate report is available from WNS.
In the area of customer experience, Persistent system is named Global ISG CX Star Performer for 2024 among insurance service providers. The Persistent System received the highest customer satisfaction score in ISG’s Voice of the Customer survey conducted by the ISG Star of Excellence™ program, which is the highest quality recognition for the technology and business services industry.
The 2024 ISG Provider Lens™ Insurance Services report for Australia and New Zealand is available for subscription or one-time purchase on this website.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only analysis of its kind to combine rigorous, data-driven research and market analysis with the real-world experience and insight of ISG’s global advisory team. yes. Businesses will receive more detailed information and market analysis to help guide their selection of suitable sourcing partners, while ISG consultants use reports to validate their market knowledge and make recommendations to ISG’s corporate customers. The survey currently covers providers worldwide, across Europe, as well as the US, Canada, Mexico, Brazil, the UK, France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/ Malaysia, with other markets to be added in the future. For more information on the ISG Provider Lens survey, please visit this webpage.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading global research and consulting firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 corporations, ISG is committed to helping businesses, civil society organizations, and service and technology providers achieve operational excellence and growth. fast. The firm specializes in digital transformation services, including AI, cloud and data analytics; search advice; governance and risk services; internet services; strategic planning and action; 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 working in more than 20 countries “a global group known for its innovative thinking, market influence, in-depth industry and technology expertise, and comprehensive industry market data-based research and analytics www.isg-one.com.
Check out the source version at businesswire.com: https://www.businesswire.com/news/home/20250120886186/en/
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.
