The 2023 ISG Provider Lens™ Insurance Services report for Europe finds insurers are looking to modernize their legacy systems to stem the effects of new competitive pressures and rising costs. Rather than going it alone, many are turning to service providers that have the required digital IT skills and industry experience to help them transform their business models, the ISG report says.
Europe’s insurers face a new world of developing risk and uncertainty due to a number of recent trends, the ISG report says. Inflation and increasing interest rates are impacting demand, growing regulatory pressure is increasing the cost of doing business, cybersecurity and climate risks are rising, and technology is changing customer expectations, the report says. This combination underscores the need for insurers to create more effective risk-modeling, pricing methods and innovative products, ISG says.
Although the combined threats and market changes may seem to paint a bleak picture for Europe’s insurance industry, insurers in the region have viable options for coping with these concerns, the ISG report says. With the aid of providers, they may swiftly embrace new technologies, re-evaluate old ways of doing business, increase cooperation and efficiency and pursue innovations to meet customer needs and company goals, ISG says.
The report also examines how replacing obsolete IT infrastructure with more sophisticated technology can assist insurers in addressing growing risks to data security.
The 2023 ISG Provider Lens™ Insurance Services report for Europe evaluates the capabilities of 36 providers across three quadrants: Life and Retirement (L&R) Insurance BPO Services, Property and Casualty (P&C) Insurance BPO Services and Insurance ITO Services.
The report names Accenture, Cognizant and TCS as Leaders in all three quadrants, while Genpact and WNS are named as Leaders in two quadrants each. Atos, Capgemini, EXL, HCLTech, Infosys, NTT DATA, Tech Mahindra and Wipro are named as Leaders in one quadrant each.
In addition, HCLTech, Hexaware and Sutherland are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.