Costly, outdated legacy core systems are
viewed as major obstacles to innovation and growing customer
expectations, ISG Provider Lens™ report says
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upgrading or completely replacing outdated core systems with more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.
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version on businesswire.com: https://www.businesswire.com/news/home/20240716143932/en/
Press:
Will Thoretz, ISG +1 203 517 3119 will.thoretz@isg-one.com
Philipp Jaensch, ISG +49 151 730 365 76
philipp.jaensch@isg-one.com
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