Superior data management and analytics can help insurers discover new opportunities and identify emerging risks, ISG Provider Lens™ report says
The lasting impacts from the COVID pandemic, economic disruption, the conflict in Ukraine and climate change have underscored the advantages gained by European insurers that have already embarked on a journey toward digital transformation, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2023 ISG Provider Lens™ Insurance Platform Solutions report for Europe finds that a rash of disruptions as well as changes in customer expectations have compelled European insurers to be far more resilient. They are responding by improving their operational efficiency, their cost effectiveness and their customer focus in order to continue to grow sustainably. The faster insurers act, the ISG report says, the sooner they will have a means of differentiating themselves from their competitors.
“The need for most European insurers to upgrade their core systems is no longer in doubt,” said Anna Medkouri, partner, ISG EMEA region. “It’s primarily a question of when and how.”
Many European insurers still find themselves hobbled by their legacy systems. According to the ISG report, these outdated systems can inhibit innovation and lead to decreased customer satisfaction, poor customer retention and an inability to control fraud, waste and abuse. Advanced insurance platforms can help insurers to thrive in the market by cutting costs, increasing flexibility, boosting customer experience and speeding products to market. With legacy modernization, outdated core systems are updated, upgraded or replaced with newer, more efficient solutions. The resulting digital transformation compels insurers to accept a fundamental change in the way they perceive the world and conduct their business, ISG says.
With a modernized IT landscape, insurers can more readily adapt to changes in the business environment, allowing them to stay agile and competitive, the ISG report says. For those European insurers that are hesitant to replace all their core systems at once, a hybrid solution can preserve some outdated systems while focusing on the progressive installation of applicable technology. Using novel features such as real-time claims processing and minimal turnaround time, insurers can provide service for their consumers that is seamless and personalized, ISG says.
“Digital experiences have permeated our daily lives,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Life insurers must acknowledge this by modernizing their key systems, prioritizing product innovation and investing in next-generation technologies that satisfy growing customer expectations.”
The report also examines how insurers can use predictive data analytics technologies to detect fraudulent transactions, models and networks.
The 2023 ISG Provider Lens™ Insurance Platform Solutions report for Europe evaluates the capabilities of 29 providers across two quadrants: Life and Retirement Insurance Platform Solutions and Property and Casualty Insurance Platform Solutions.
The report names Adacta, Fadata and Sapiens as Leaders in both quadrants, while Duck Creek Technologies, Guidewire, INSTANDA, Insurity, Lumera, Majesco and msg life are named as Leaders in one quadrant each.
In addition, AdvantageGo and INSTANDA are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.
Customized versions of the report are available from Adacta.
The 2023 ISG Provider Lens™ Insurance Platform Solutions report for Europe 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 900 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 1,600 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.