Europe’s Insurers Modernizing Amid Mounting Challenges
- European insurers are recognizing the importance of modernizing legacy systems to stay competitive and combat rising costs.
- Service providers with digital IT skills and industry experience are being sought after to help transform business models, creating immense value through IT, business process, and insurance domain capabilities.
- The report evaluates the capabilities of 36 providers across Life and Retirement (L&R) Insurance BPO Services, Property and Casualty (P&C) Insurance BPO Services, and Insurance ITO Services, naming several companies as Leaders and Rising Stars in different quadrants.
- European insurers are facing challenging macroeconomic conditions, new market risks, and changing customer demands, which may impact profitability and performance.
- Inflation, interest rates, regulatory pressure, cybersecurity, climate risks, and changing technology are posing significant challenges for European insurers.
- Outdated infrastructure and legacy systems are contributing to hidden costs that impact the bottom line for many European insurers.
Outsourcing and technology providers are helping European insurance companies update and transform their businesses, ISG Provider Lens™ report says
The 2023 ISG Provider Lens™ Insurance Services report for
“Insurance companies are willing to form long-term, mutually beneficial relationships with service providers,” said Anna Medkouri, partner and insurance industry lead for ISG EMEA. “These strategic partners can create immense value by applying IT, business process and insurance domain capabilities to business transformation, often with a relatively quick turnaround time.”
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 outdated infrastructure and legacy systems that many European insurers rely on contain hidden costs that have a direct impact on their bottom line,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Insurers need to prioritize next-generation technologies that stimulate innovation and streamline internal operations to increase profitability.”
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
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.
A customized version of the report is available from WNS.
The 2023 ISG Provider Lens™ Insurance Services report for
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
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.
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 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
View source version on businesswire.com: https://www.businesswire.com/news/home/20231215652626/en/
Press Contacts:
Will Thoretz, ISG
+1 203 517 3119
will.thoretz@isg-one.com
Kate Hartley, Carrot Communications for ISG
+44 (0)20 3457 6403
kate.hartley@carrotcomms.co.uk
Source: Information Services Group, Inc.
FAQ
What are European insurers seeking amidst challenging macroeconomic conditions, new market risks, and changing customer demands?
How are European insurers planning to combat new competitive pressures and rising costs?
What are insurers looking for in service providers to help them transform their business models?
What challenges are European insurers facing, according to the report?
How are European insurers coping with the challenges they face?
How many providers were evaluated in the report, and what were the key findings?
