ISG Provider Lens Report Finds Insurance Companies Looking to Business Process Outsourcing Providers to Help Them With New Tools
US insurance companies are rapidly adopting new technologies such as artificial intelligence and drones to better serve their customers, and they are looking to business process outsourcing (BPO) providers to help them roll out these advancements, according to a new report published by Information Services Group (ISG), a leading global technology research and advisory firm.
The 2019 ISG Provider Lens™ Insurance BPO Digital Services Report for the U.S. finds the insurance market embracing AI and other automation technologies to improve everything from accuracy in underwriting to claims processing. Insurers are using drones to check on property damage, and they are enabling robo advisors to provide personalized services to customers.
“The insurance industry is one of the early adopters of automation,” said Jan Erik Aase, director and global leader, ISG Provider Lens Research. “Insurers have a vast number of applications for robotic process automation, and service providers are introducing bots that can help carriers with underwriting, claims processing, data entry, billing and several other functions.”
Insurance carriers increasingly are looking to collect data from Internet-connected devices like wearables and connected cars to calculate premiums and investigate claims, the report adds. The Internet of Things will transform and empower insurers by giving them new insights on their customers, and BPO providers can help make sense of the wealth of new data, the report says.
In addition, insurance carriers increasingly are using social media and mobile apps to interact with customers, the report says. At many carriers, purchase of insurance policies is just a click away, while social media is allowing carriers to predict and understand customer sentiments and deliver tailormade responses.
As the market embraces technology, an emerging category of vendors, called insurtechs, is offering to help traditional insurance carriers adopt disruptive tools. Some BPO providers are partnering with insurtechs to build technology ecosystems that insurance carriers can seamlessly adopt, the report says.
The 2019 ISG Provider Lens™ Insurance BPO Digital Services Report for the U.S. evaluates the capabilities of 14 providers across three quadrants: Life and Annuity Digital Services, Property and Casualty Insurance Services and Life and Annuity TPA Services.
The report names Cognizant, DXC Technology and EXL as leaders in all three quadrants, and Infosys, NTT DATA, SE2 and WNS as leaders in two. Genpact is a leader in one quadrant.