LONDON--(BUSINESS WIRE)--

An unpredictable global environment and advancing AI and intelligent technologies are driving fundamental shifts in the risk landscape and insurers’ relationships with clients and regulators in Europe, says a new research report from Information Services Group () (Nasdaq: ), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ Insurance Services report for Europe says new AI-powered tools can tackle existing and emerging challenges across the insurance value chain. Enterprises are increasingly adopting solutions to streamline their operations, enhance service delivery and ensure compliance with new regulations.

“The residual effects of COVID-19 and the ongoing global climate crisis are contributing to a rapidly evolving risk landscape and disrupting well-established actuarial models,” said Thorsten Stüwe, EMEA director, ISG Insurance. “The economic impacts of these forces are also affecting how much consumers and businesses can spend on insurance products. Insurance providers are now beginning to assess the strategy shifts these forces will effect.”

The report says AI has evolved from a speculative concept into a transformative force in insurance, with applications such as data-driven agent profiling, predictive health analytics and advanced fraud detection techniques. Service providers are offering more specialized solutions to meet the evolving demand for personalization and integrating advanced technologies such as AI/ML to improve claims processing, policy administration and customer service.

For the European market, service providers are focusing on more data-driven decision-making and predictive analytics services and helping insurance firms transform their business process outsourcing into digitized operations to improve customer experience throughout the insurance service lifecycle.

While managed services and application data management remain significant components of insurance enterprise IT budgets, the ISG research says IT outsourcing providers are expanding their portfolios into system integration, IT advisory services and business consulting and leveraging cutting-edge digital technologies, including conversational AI, to improve customer engagement.

“Customer experience and innovation have emerged as key competitive differentiators in the insurance industry,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Strategic provider partners can create immense value by delivering next-generation technologies, innovative business processes and insurance domain capabilities that enable cost-effective and sustainable growth.”

The report also explores the need for insurance leaders to comprehensively evaluate their current organizational posture. To effectively leverage AI’s vast potential, insurers should establish scalable AI infrastructures, encourage collaboration between data science and actuarial teams and uphold a culture of continuous innovation.

For more insights into the challenges facing insurance companies in Europe, including maintaining profitability and reinventing business models, see the ISG Provider Lens™ Focal Points briefing .

The 2024 ISG Provider Lens™ Insurance Services report for Europe evaluates the capabilities of 55 providers across five quadrants: Life and Retirement (L&R) Insurance BPO Services, Property and Casualty (P&C) Insurance BPO Services, Insurance ITO Services, Insurance ITO Services – Midmarket and Insurance ITO Services – Midmarket Next-Gen.

The report names Accenture, Cognizant, Genpact, TCS and Tech Mahindra as Leaders in three quadrants each. EXL, Sopra Steria and WNS are Leaders in two quadrants each. Atos, Capgemini, Charles Taylor, DXC Technology, Fujitsu, GFT, HCLTech, Hexaware, Infosys, Iron Mountain, Kyndryl, Mphasis, msg global solutions, NTT DATA, Publicis Sapient, Randstad Digital, Sutherland, Unisys, Wipro and Zuehlke are named Leaders in one quadrant each.

In addition, HCLTech, Sopra Steria, UST, Xceedance and Zuehlke are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

In the area of customer experience, Persistent Systems is named the global ISG CX Star Performer for 2024 among insurance services providers. Persistent Systems earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the , the premier quality recognition for the technology and business services industry.

Customized versions of the report are available from , and .

The 2024 ISG Provider Lens™ Insurance Services report for Europe is available to subscribers or for one-time purchase on .

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, Mexico, 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 .

About ISG

ISG (Information Services Group) (Nasdaq: ) 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 AI, 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 .

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