U.S. Insurers Seek Partners for Digital Transformation as Pandemic, Regulations, Market Trends Shake Up Industry
May 05 2021 - 1:42PM
Business Wire
ISG Provider Lens™ report says insurance
companies are outsourcing business processes and new technologies
to move faster, become more efficient and launch new
businesses
U.S. insurance companies are accelerating their adoption of
digital technologies as the COVID-19 pandemic disrupts their
operations, in many cases turning to business process outsourcing
for efficiency, agility and new capabilities, according to a new
report published today by Information Services Group (ISG) (Nasdaq:
III), a leading global technology research and advisory firm.
The 2020 ISG Provider Lens™ Insurance BPO Services report for
the U.S. finds most of the country’s life and retirement (L&R)
and property and casualty (P&C) insurance companies have begun
digital transformations, though they are at varying stages of the
process. When COVID-19 sparked changes, such as employees being
forced to work remotely and potential policyholders applying for
coverage without meeting an agent in person, companies that had
been slowly changing had to speed up just to survive.
Business process outsourcing (BPO) providers are helping
insurers achieve more growth and efficiency in response to changing
market dynamics, including increasing regulation and customer
demand for modern digital experiences, the report says. Companies
are outsourcing business processes instead of continuing to operate
inflexible legacy systems where data is locked up in silos.
“The pandemic showed how much insurance companies need agility
and modern technology,” said insurance specialist Dennis Winkler,
senior director, business services, for ISG Americas and a
co-author of the report. “Rather than make big investments in new
systems, many are turning to experienced outside providers.”
Insurers that outsource business processes can focus on more
strategic activities instead of on squeezing new capabilities out
of old platforms, ISG says. BPO providers are bringing robotic
process automation (RPA), artificial intelligence (AI), chatbots
and other technologies to the table, while providers of third-party
administrator (TPA) services are carrying out essential tasks
through modern digital ecosystems. Some insurance companies are
leveraging these technologies to quickly launch new businesses,
while others are replacing their older systems wholesale.
Business process outsourcing can help insurers analyze the
growing amount of available data to build a unified, 360-degree
view of customers, according to the report. Analytics also can help
companies improve risk management, more accurately price policies
and better detect fraud. In addition, BPO and TPA providers offer
technologies that can help insurers create user experiences similar
to what consumers have come to expect from online retail, such as a
fast and simple policy application with an immediate response.
Amid growing concerns about data security, insurance companies
are turning to service providers that, in some cases, can keep
customer information more secure than insurers’ in-house systems
do, the report says. Providers are implementing tools that may be
cost-prohibitive for companies to build on their own and
introducing new technologies such as blockchain, which can
eliminate time-consuming data validation and verification.
The 2020 ISG Provider Lens™ Insurance BPO Services report for
the U.S. evaluates the capabilities of 18 providers across three
quadrants: Life & Retirement Insurance Services, Property &
Casualty Insurance Services and Third-Party Administrator (TPA)
Services.
The report names Cognizant, DXC Technology, EXL, Infosys and WNS
as Leaders in all three quadrants. Genpact and SE2 are named as
Leaders in two quadrants each and NTT DATA is a Leader in one
quadrant.
In addition, Accenture is named as a Rising Star—a company with
a “promising portfolio” and “high future potential” by ISG’s
definition—in all three quadrants.
Customized versions of the report are available from EXL,
Infosys and WNS.
The 2020 ISG Provider Lens™ Insurance BPO Services report for
the U.S. 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., Germany,
Switzerland, the U.K., France, the Nordics, Brazil and
Australia/New Zealand, with additional markets to be added in the
future. For more information about ISG Provider Lens research,
please visit this webpage.
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.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading
global technology research and advisory firm. A trusted business
partner to more than 700 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 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 1,300
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/20210505005991/en/
Press Contacts:
Will Thoretz, ISG +1 203 517 3119 will.thoretz@isg-one.com
Cait Buckley, Matter Communications for ISG +1 617 874 5214
isg@matternow.com
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