Analytics, AI Transform Insurance Business Operations

Enterprises establish data-centered processes to improve decision quality, service performance and workforce productivity, ISG Provider Lens^® report says

STAMFORD, Conn.--(BUSINESS WIRE)--Insurance companies are embedding analytics, GenAI and agentic AI across core operations to support growth, risk management and improved customer experience, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.

The 2026 ISG Provider Lens^® global Specialty Analytics and AI Services — Insurance report finds that growing volumes of data and increasingly complex risks are driving insurers to reshape their operating models. Climate-related exposures, cyberthreats, geopolitical uncertainty and changing customer behavior require them to evaluate a wider range of information sources. As they bring AI into production, enterprises need more AI transparency, explainability and accountability to meet regulatory requirements.

“Insurance is not short of data; it needs intelligence that delivers the right context when decisions matter most,” said Guido Tamburini, partner and head of Banking, Financial Services and Insurance at ISG. “The market is moving toward systems that make expertise more effective without removing human accountability.”

Underwriting continues to receive the largest share of analytics and AI investment. Companies are adopting intelligent document processing, underwriting copilots and predictive risk models. These capabilities accelerate information gathering, reduce repetitive administration and support more consistent evaluation of risks for both personal and commercial lines. AI augments rather than replaces the expertise of underwriters, allowing them to spend more time assessing complex sets of risks.

Claims performance and customer experience remain important differentiators as insurers seek to improve operations. Companies are investing in claims triage, summarization, fraud detection and conversational intelligence for customer interactions. These capabilities support faster claims handling, greater consistency and more timely responses when customers need assistance. Segmentation and next-best-action recommendations help companies uncover cross-selling opportunities, improve retention and increase customer lifetime value.

To prepare for broader AI deployment, insurers are modernizing cloud-based data foundations and enterprise knowledge-management frameworks. They are also connecting policy and claims records with telematics, geospatial information, images, documents and third-party risk datasets. AI-ready architectures improve data quality, accessibility and contextualization for decisions in multiple business functions. Companies are strengthening AI governance with responsible AI practices, AI model monitoring and staff training, ISG says.

“Insurance enterprises need partners that can turn AI transformation into a continuous capability, not a series of deployments,” said Manav Deep Sachdeva, ISG principal analyst and lead author of the report. “Specialist providers help insurers build operating models that result into scalable AI deployment using reusable assets, reducing the effort and cost of future adoption while accelerating continuous transformation.”

The report also explores other trends in insurance analytics and AI, including rising demand for reusable AI components and growing use of generative AI in actuarial research and reporting.

For more insights into the analytics and AI challenges faced by insurance enterprises, along with ISG’s advice for addressing them, see the ISG Provider Lens Focal Points briefing here.

The report evaluates the capabilities of 16 providers in one quadrant: Specialty Analytics and AI Services.

The report names Fractal Analytics, Quantiphi, ReSource Pro, Tiger Analytics and WNS, part of Capgemini, as Leaders in the quandrant.

Customized versions of the report are available from Tiger Analytics and WNS, part of Capgemini.

The 2026 ISG Provider Lens global Specialty Analytics and AI Services — Insurance report is available to subscribers or for one-time purchase on this webpage.

About ISG

ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.