Unified Services Enable Insurance Innovation

Key Terms

cloud-native technical

Cloud-native describes a way of creating and running applications that are designed specifically to operate smoothly on cloud computing platforms. Think of it as building a house with flexible, lightweight materials that can be easily moved, scaled, or adjusted as needed, rather than using rigid, traditional construction. For investors, it signifies technology that is more adaptable, efficient, and capable of quickly responding to changing market demands.

AI-powered technical

"AI-powered" describes technology that uses artificial intelligence to perform tasks, make decisions, or analyze information automatically. It’s similar to having a highly skilled assistant that can learn from data, recognize patterns, and improve over time, helping to make processes faster and more accurate. For investors, this means better insights and more efficient operations, potentially leading to smarter investment choices.

IT outsourcing (ITO) financial

IT outsourcing (ITO) is when a company hires an outside firm to handle all or part of its information technology work—such as managing networks, software, or data centers—rather than doing it in-house. Like hiring a contractor to maintain a house so the owner can focus on running the home, ITO can lower costs, provide access to specialized skills, and speed up projects, but it also creates reliance on a third party and can affect a company’s operating costs, flexibility, and risk profile—factors investors watch closely.

business process outsourcing (BPO) financial

Business process outsourcing (BPO) is when a company hires an outside firm to handle routine or specialized tasks—like customer support, payroll, IT, or data entry—so the company can focus on its main products or services. For investors, BPO matters because it can lower costs and improve efficiency like hiring a skilled contractor for chores, but it also changes a company’s profit margins, growth potential and risk profile through factors such as service quality, data security and dependence on third parties.

API-first technical

Designing a product or service so its programmable connection points (APIs) are created and prioritized before any user-facing features, like planning plumbing and wiring before decorating rooms. For investors, an API-first approach signals easier integration with partners and customers, faster rollout of new features, and more scalable, reusable technology that can lower development costs and open additional revenue or partnership channels.

IoT technical

The Internet of Things (IoT) describes a network of everyday devices—such as appliances, vehicles, and equipment—that are connected to the internet and can share data automatically. For investors, IoT represents a growing trend that can drive efficiency and innovation across many industries, potentially creating new opportunities for growth and value. Its expansion influences how companies operate and compete in a digitally connected world.

predictive analytics technical

Predictive analytics uses historical data and patterns to estimate future outcomes, like sales, customer behavior, or operational problems. For investors it matters because it turns past signals into probable forecasts—similar to a weather forecast or traffic app—helping assess potential risks, spot opportunities, and prioritize where to allocate capital, while remembering that predictions carry uncertainty and are not guarantees.

intelligent automation technical

Intelligent automation is the use of software 'robots' combined with artificial intelligence to take over not just repetitive tasks but also decisions that previously needed human judgment, like a smart assistant that follows a recipe and tweaks it when ingredients change. For investors, it matters because it can lower costs, speed up operations, reduce mistakes, and enable faster scaling—factors that can improve profit margins, cash flow and a company’s competitive position, while also requiring upfront investment and oversight.

Providers help insurers break down barriers between IT and operations by implementing cloud-native, AI-powered platforms, ISG Provider Lens^® report says

STAMFORD, Conn.--(BUSINESS WIRE)-- Insurance enterprises are increasingly integrating AI into their operations to increase agility, personalization and operational excellence as they face multiple business challenges, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.

The 2025 ISG Provider Lens^® global Insurance Services — Strategic Capabilities (Insurance Services Specialists) report finds insurers reassessing their operating structures as they confront inflation, climate-related risks, cyber threats and the growing demands of digital-first consumers. Talent shortages and evolving regulations further increase the pressure for change. The transformation of insurance operations is influencing how companies collaborate with providers specializing in IT outsourcing (ITO) and business process outsourcing (BPO).

“Insurers around the world are rethinking how they deliver value amid rising uncertainty,” said Dennis Winkler, director, Insurance, at ISG. “They are turning to AI and other intelligent architectures that streamline operations and enhance performance under increasing cost and compliance pressures.”

Insurers are adopting modular AI systems that automate functions including triage, document processing and fraud detection, allowing them to use straight-through processing for routine work. As AI-driven automation increases, BPO providers are shifting the roles of human workers toward strategic oversight, exception management and roles in which empathy for customers is essential. This model helps insurers manage higher underwriting applications and claim volumes and maintain consistency as operational demands increase.

Cloud-native platforms are replacing traditional core systems in a growing number of insurance companies, ISG says. These platforms provide composable architectures that allow insurers to add new capabilities with minimal disruption. Enterprises are using API-first frameworks to integrate advanced analytics and real-time data sources into their workflows for underwriting and claims processing. Using this new foundation reduces technology costs, increases agility and enables continuous enhancement without extended transformation cycles.

Insurers are reaching beyond traditional distribution channels into embedded distribution, collaborating with retail, fintech, health and wellness platforms to introduce products at the point of need, the report says. These models rely on data from IoT devices, wearables and digital touchpoints to create personalized offerings and strengthen customer engagement. In life and retirement insurance, carriers are introducing hybrid products offering protection, wealth and wellness benefits as policyholders seek solutions aligned with their lived experience and long-term goals.

“Insurance companies are reshaping operating models for speed, accuracy and the flexibility to adapt to market changes,” said Sandhya Hari Navage, co-author of the report. “Providers that deliver AI-enabled platforms and strategic partnerships help enterprises improve performance and customer outcomes.”

The report also explores other trends shaping insurance operations, including increased use of predictive analytics in underwriting and the growing role of intelligent automation in compliance and audit functions.

For more insights into the challenges driving insurance companies to modernize their operations, plus ISG’s advice for overcoming them, see the ISG Provider Lens^® Focal Points briefing here.

The 2025 ISG Provider Lens^® global Insurance Services — Strategic Capabilities (Insurance Services Specialists) report evaluates the capabilities of 48 providers across three quadrants: Life and Retirement (L&R) Insurance Services Specialists, Property and Casualty (P&C) Insurance Services Specialists and Insurance ITO Services Specialists.

The report names EXL, Sutherland and WNS as Leaders in two quadrants each. It names Charles Taylor, Davies Group, Ensono, GFT, Hexaware, HTC Global Services, Kyndryl, Patra Corporation, ReSource Pro, Tiger Analytics, ValueMomentum, Xceedance, Zensar Technologies and Zinnia as Leaders in one quadrant each.

In addition, Xceedance is named as a Rising Star — a company with a “promising portfolio” and “high future potential” by ISG’s definition — in two quadrants. Coforge is named as a Rising Star in one quadrant.

In the area of customer experience, Sutherland is named the global ISG CX Star Performer for 2025 among Insurance Industry Specialists providers. Sutherland earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

Customized versions of the report are available from Hexaware, WNS and Xceedance.

The 2025 ISG Provider Lens^® global Insurance Services — Strategic Capabilities (Insurance Services Specialists) 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 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 webpage.

About ISG

ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251217871623/en/

Press Contacts:

Laura Hupprich, ISG

+1 203-517-3100

laura.hupprich@isg-one.com

Julianna Sheridan, Matter Communications for ISG

+1 978-518-4520

isg@matternow.com

Source: Information Services Group, Inc.