U.S. Insurance Carriers Turn to Technology Platform Providers to Weather the Pandemic.
ISG Provider Lens™ report finds many U.S. carriers embracing tools like data analytics, artificial intelligence, and the cloud.
STAMFORD, Conn. – March 18, 2022 – 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.
Customized versions of the report are available from FAST (Verisk) and Vitech.
The 2021 ISG Provider Lens™ Insurance Platform Solutions Report for the U.S. is available to subscribers or for one-time purchases on this webpage.
Source: Information Services Group, Inc.