ISG Provider Lens™ report says companies collaborate with providers on digital transformations to address economic, climate and customer service challenges
SYDNEY–( BUSINESS WIRE )–Insurers in Australia and New Zealand continue to invest in new technologies and services, including artificial intelligence, to become primarily digital, data-driven organizations, according to a new research report published today by Information services ISG Group (Nasdaq: NASDAQ:), a leading global technology research and consulting company.
The 2024 ISG Provider Lens™ Insurance Services Report for Australia and New Zealand finds that insurers in the region are implementing digital transformations to become more efficient and comply with evolving regulations. Insurers are facing declining profit margins, with inflation and severe weather impacting claims. Changing consumer expectations and competition from startups are forcing established companies to innovate in products and customer experiences.
Michael Gale, partner and head of ISG Asia Pacific, said insurers in Australia and New Zealand needed to move beyond legacy systems and cultures to remain competitive. Service providers help them make fundamental leaps in technology.
The report says AI and generative AI 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 analytical and performance capabilities of AI are expected to simplify complex insurance products and enable cost optimization. However, being fully prepared for AI will require the ability to cultivate and apply highly accurate data.
Property and casualty insurers, for example, are implementing data analytics to improve risk assessment and customer segmentation, leading to improved decision-making, the report says. To improve and personalize customer service, they are integrating 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 help property and casualty insurance companies comply with regulations, especially in security and automation efforts.
Life and retirement (L&R) insurers are also turning to process outsourcing (BPO) providers to meet evolving policyholder requirements, ISG says. While purchasing L&R insurance is less common than accident and accident cover in Australia and New Zealand, increasing economic uncertainty has led to more consumers improving their insurance protection.
ISG says traditional IT outsourcing still makes up a significant portion of insurance organizations' IT budgets in Australia and New Zealand, although companies are exploring a range of strategies, including near-offshoring, offshoring, outsourcing and offshoring. With external sources, to address resource issues. As they modernize their IT infrastructures, insurance companies are increasingly adopting Agile methodologies and relying on cloud platforms.
Digital transformation for insurers in this region will require significant investments in cloud, data management and security, said Jean-Eric Assy, partner and global leader of ISG Provider Lens Research. ITO providers with expertise in these areas will be important partners in this process.
The report also addresses other trends impacting insurers in Australia and New Zealand, including the need for companies to retain intellectual property rights when adopting AI and the increasing importance of controls to prevent data leakage from AI models.
For more insights into the challenges insurers face in Australia and New Zealand, along with ISG tips for addressing them, see the summary of ISG Provider Lens™ touchpoints here.
The 2024 ISG Provider Lens™ Insurance Services Report for Australia and New Zealand assesses the capabilities of 40 providers across four quadrants: Life & Retirement (L&R), BPO Services, Property & Casualty (P&C), BPO Services, ITO Insurance Services, and ITO Insurance. Services “Midmarket Next-gen.
The report is called TCS and Tech Mahindra (NSE:) as leaders in three quarters each. They are named Cognizant (NASDAQ:), Genpact (NYSE:), TSA, and Wipro (NYSE:) as leaders in two quarters each. Accenture (NYSE:), Capgemini, Cloud4C, DXC Technology (NYSE:), EXL, Fujitsu, IBM (New York Stock Exchange symbol:), Infosys (NSE:), Iron Mountain (NYSE:), Kendrill, Publicis Sapient, Randstad (P:) digital, Remote performance (EPA:), Unisys (NYSE:) and WNS (NYSE:) were named leaders in one quarter each.
Additionally, EXL, HCLTech, WNS and Xceedance were named as “Rising Stars” companies with a promising portfolio and high future potential as defined by ISG” in one quarter each.
A customized version of the report is available from WNS.
In the field of customer experience, Persistent was named the global ISG CX Star Performance of the Year 2024 among insurance providers. The continuous system received the highest customer satisfaction scores in ISG's Voice of the Customer survey, which is part of the ISG Star of Excellence™ program, the industry's premier recognition of quality in technology and business services.
The 2024 ISG Provider Lens™ Insurance Services Report for Australia and New Zealand is available to subscribers or for a one-time purchase on this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant is the only provider assessment of its kind that combines empirical, data-driven research and market analysis with the expertise and real-world observations of ISG's global advisory team. Companies will find a wealth of detailed data and market analysis to help guide their selection of the right sourcing partners, while ISG consultants use the reports to validate their market knowledge and make recommendations to ISG's institutional clients. The research currently covers providers serving globally, across Europe, as well as in the US, Canada, Mexico, Brazil, UK, 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.
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 top 100 companies, ISG is committed to helping businesses, public sector organizations, service providers and technology achieve operational excellence and faster growth. The company specializes in digital transformation services, including artificial intelligence, cloud and data analytics. Sourcing consulting; Governance and managed risk services; network carrier services; Strategy and operations design; change management; Market intelligence, research and technology analysis. Founded in 2006 and headquartered in Stamford, Connecticut, ISG employs more than 1,600 digital-ready professionals working in more than 20 countries, a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class expertise. 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 Thoritz, ISG
+1 203 517 3119
will.thoretz@isg-one.com
Juliana Sheridan, Matter Communications for ISG
+1 978-518-4520
isg@matternow.com
Source: Information Services Group, Inc
