LONDON--(BUSINESS WIRE)--Faced with growing customer demands and skepticism, European insurers are looking to modernize their core systems in a bid to develop a more agile, efficient and policyholder-centric approach, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2024 ISG Provider Lens™ Insurance Platform Solutions report for Europe says to meet constantly shifting needs and expectations from customers, European insurers require core systems that can readily incorporate new features, enhance productivity, foster growth and remain relevant into the future. Many are turning to providers to modernize their legacy systems by either updating, upgrading or completely replacing outdated core systems with more efficient and effective solutions, the ISG report says.
“Modernizing an outmoded system can be incredibly complex,” said Thorsten Stuewe, insurance industry lead for ISG EMEA. “Providers can assist with a methodical approach that includes identifying key stakeholders, prioritizing the most vital systems and managing change effectively to ensure a successful modernization project.”
Legacy core systems are the principal obstacle to innovation within the insurance sector, restricting the capability of insurers to adopt and benefit from state-of-the-art technologies, the ISG report says. According to the report, the detrimental consequences of clinging to a legacy core can be far-reaching. Maintaining obsolete systems and addressing interoperability challenges will lead to escalating IT costs and operational inefficiencies, ISG says.
These unwelcome challenges inevitably detract from an insurer’s capacity to focus attention on critical business objectives, such as enhancing customer service, fostering growth and driving innovation, the ISG report says. According to the report, many European businesses are questioning the relevance of insurance, viewing it as an imposed purchase, one that merely provides a license for them to continue operating because of some legal liability or underlying condition.
With forward-thinking insurers implementing innovative business models, the insurance industry has the potential to evolve into an ecosystem in which other businesses can operate with ease, the ISG report says. Initiating these efforts promptly will enable early movers to gain a competitive edge in the marketplace, the report says.
“Market opportunities, consumer needs and regulatory requirements are constantly changing,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “European insurers need to be confident that their technology infrastructure will be able to adapt promptly and grow as their business does.”
The report also examines how data-driven insights can enable insurers to identify new risks and opportunities.
For more insights into the platform challenges facing the insurance industry in Europe, including meeting growing policyholder expectations and finding the right transformation partner, along with ISG’s advice for addressing them, see the ISG Provider Lens™ Focal Points briefing here.
The 2024 ISG Provider Lens™ Insurance Platform Solutions report for Europe evaluates the capabilities of 31 providers across two quadrants: Life and Retirement (L&R) Insurance Platform Solutions and Property and Casualty (P&C) Insurance Platform Solutions.
The report names Adacta, Fadata and Sapiens as Leaders in both quadrants, while Duck Creek, DXC Technology, Guidewire, INSTANDA, Insurity, Lumera, Majesco, msg life and TCS BaNCS are named as Leaders in one quadrant each.
In addition, EIS, Genasys Tech and Peak3 (ZA Tech) 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 and msg life.
The 2024 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, 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 (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 AI and 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 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.
