Companies are partnering with service providers on digital transformations to address economic, climate, customer service challenges, says the ISG Provider Lens™ report.

SYDNEY–(BUSINESS WIRE)–Insurance companies in Australia and New Zealand continue to invest in new technologies and services, including AI, to become data-driven, digital-first organizations, according to new research report published today in Information Services Group (ISG) (Nasdaq: NASDAQ:), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ Insurance Services for Australia and New Zealand report found that insurers in the region are undertaking digital transformations to become more efficient and comply with changing regulations. Insurers face shrinking margins, with inflation and severe weather affecting claims. Changing consumer expectations and competition from startups are forcing established companies to innovate products and customer experiences.

Insurance companies in Australia and New Zealand need to move beyond legacy systems and cultures to remain competitive, says Michael Gale, partner and head of ISG Asia Pacific. Service providers are helping them make significant technological leaps.

AI and generative AI are playing a growing 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 report says. AI’s analytical and performance capabilities are expected to simplify complex insurance products and enable cost optimization. However, full AI readiness requires the ability to develop and apply more granular data.

Property and casualty (P&C) insurers, for one, are implementing data analytics to improve risk assessment and customer segmentation, leading to better decision-making, the report said. To improve and personalize customer service, they combine traditional and digital channels. There is a growing trend towards partnering with new insurtech companies to foster innovation and efficiency. Business process outsourcing (BPO) providers help P&C insurers comply with regulations, particularly with security and automation efforts.

Life and retirement (L&R) insurers are also turning to BPO providers to meet the changing needs of policyholders, says ISG. While L&R insurance is less commonly purchased than P&C coverage in Australia and New Zealand, growing economic uncertainty is leading many consumers to upgrade their insurance protection.

Traditional IT outsourcing remains a large part of the IT budgets of insurance businesses in Australia and New Zealand, although companies are exploring different strategies, including nearshoring, offshoring, insourcing and outsourcing, to resource issues will be addressed, says ISG. As they update their IT infrastructures, insurers are increasingly adopting Agile methods and relying on cloud-based platforms.

Digital transformation for insurers in this region requires significant investments in the cloud, data management and security, says Jan Erik Aase, partner and global leader, ISG Provider Lens Research. ITO service providers with expertise in these areas can be important partners in this process.

The report also examines other trends affecting insurers in Australia and New Zealand, including the need for businesses to maintain intellectual property rights when adopting AI and the growing importance of controls to prevent data leakage from AI models.

For more insights into the challenges facing insurance businesses in Australia and New Zealand, along with ISG’s advice for addressing them, view the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Insurance Services for Australia and New Zealand report assesses the capabilities of 40 providers in four quadrants: Life and Retirement (L&R) Insurance BPO Services, Property and Casualty (P&C) Insurance BPO Services , Insurance ITO Services and Insurance ITO Services ” Midmarket Next-gen.

The report names TCS and Tech Mahindra (NSE:) as Leaders in three quadrants respectively. It names Cognizant (NASDAQ: ), Genpact (NYSE: ), TSA and Wipro (NYSE:) as Leaders in both quadrants respectively. Accenture (NYSE:), Capgemini, Cloud4C, DXC Technology (NYSE:), EXL, Fujitsu, IBM (NYSE:), Infosys (NSE:), Iron Mountain (NYSE:), Kyndryl, Publicis Sapient, Randstad (AS:) Digital, Teleperformance (EPA: ), Unisys (NYSE: ) and WNS (NYSE: ) were named as Leaders in one quadrant each.

Additionally, EXL, HCLTech, WNS and Xceedance were named Rising Stars “companies with a promising portfolio and high future potential by ISG definition” in one quadrant each.

A customized version of the report is available on WNS.

In the area of ​​customer experience, the Persistent system was named a global ISG CX Star Performer for 2024 among insurance service providers. The consistent system earned the highest customer satisfaction score in ISG’s Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and service industry. in business.

The 2024 ISG Provider Lens™ Insurance Services for Australia and New Zealand report 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 provider evaluation service of its kind to combine empirical, data-driven market research and analysis with the real-world experience and observations of the global advisory team of ISG. Businesses can find a wealth of detailed market data and 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 business clients. The research now covers providers offering their services worldwide, throughout Europe, as well as in the US, Canada, Mexico, Brazil, UK, France, Benelux, Germany, Switzerland, Nordics, Australia and Singapore/Malaysia, with more 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 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 providers in service and technology to achieve operational efficiency and faster growth. The company specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; risk management and services; network carrier services; strategic planning and operations; 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 group 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 market data. For more information, visit the www.isg-one.com.

See the original version on businesswire.com: https://www.businesswire.com/news/home/20250120886186/en/

Will Thoretz, ISG
+1 203 517 3119
[email protected]

Julianna Sheridan, Matter Communications for ISG
+1 978-518-4520
[email protected]

Source: Information Services Group, Inc.