STAMFORD, Conn.--(BUSINESS WIRE)--The COVID-19 pandemic forced insurance carriers in the U.S. to rely on technology solutions to meet changing operational and market demands, and many have turned to technology platform providers for support, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2021 ISG Provider Lens™ Insurance Platform Solutions Report for the U.S. finds the pandemic served as a catalyst for digital transformation efforts in the insurance industry. U.S. insurance carriers that had begun their digital transformation journeys before the pandemic had an advantage over their competitors, including the ability to move their workforces to a remote working model. Other carriers have been scrambling to catch up during the pandemic, the report says.
“Many insurance carriers that had been lagging behind in technology adoption are now adopting and deploying technologies that will help them remain agile,” said Paul Schreiner, ISG partner for the insurance industry. “These tools and technologies will enable them to respond quickly to changing market conditions and will facilitate innovation.”
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 U.S. evaluates the capabilities of 31 platform providers across two quadrants: Life and Retirement Platforms and Property and Casualty Platforms.
The report names DXC Technology and Majesco as Leaders in both quadrants. Accenture, BriteCore, Duck Creek, EIS, EXL, FAST (Verisk), Guidewire, Infosys, Insurity, OneShield and Vitech were all named Leaders in one quadrant.
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.
The 2021 ISG Provider Lens™ Insurance Platform Solutions 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., Canada, 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.
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.
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 800 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.