▾ G11 Media Network: | ChannelCity | ImpresaCity | SecurityOpenLab | Italian Channel Awards | Italian Project Awards | Italian Security Awards | ...
InnovationOpenLab

Insurers Embrace AI Innovations in Australia, New Zealand

$III #AI--Insurance companies in Australia and New Zealand continue to invest in new technologies and services, including AI, to become data-driven, digital-first organizations, according to a new res...

Business Wire

Companies partner with service providers on digital transformations to meet economic, climate, customer service challenges, ISG Provider Lens™ report says

SYDNEY: $III #AI--Insurance companies in Australia and New Zealand continue to invest in new technologies and services, including AI, to become data-driven, digital-first organizations, 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 Services report for Australia and New Zealand finds that insurers in the region are carrying out digital transformations to become more efficient and comply with evolving regulations. Insurers face declining margins, with inflation and extreme weather affecting claims. Changing consumer expectations and competition from startups are forcing established firms to innovate in products and customer experiences.

“Insurance companies in Australia and New Zealand need to move beyond legacy systems and cultures to remain competitive,” said Michael Gale, partner and head of ISG Asia Pacific. “Service providers are helping them make essential leaps in technology.”

AI and generative AI are playing a growing role as insurers in the region adopt tools for use cases such as automated claims processing, better customer interactions and predictive analytics for risk management, the report says. The analytical and performance capabilities of AI are expected to simplify complex insurance products and enable cost optimization. However, full AI readiness will require the ability to cultivate and apply highly granular data.

Property and casualty (P&C) insurers, for one, are implementing data analytics to improve risk assessment and customer segmentation, leading to better decision-making, the report says. To improve and personalize customer service, they are integrating traditional and digital channels. There is a growing trend toward partnerships with newer insurtech companies to boost innovation and efficiency. Business process outsourcing (BPO) providers are helping P&C insurers comply with regulations, especially in security and automation efforts.

Life and retirement (L&R) insurers are also turning to BPO providers to meet evolving policyholder demands, ISG says. While L&R insurance is less commonly purchased than P&C coverage in Australia and New Zealand, growing economic uncertainty has led more consumers to improve their insurance protection.

Traditional IT outsourcing remains a big part of insurance enterprises’ IT budgets in Australia and New Zealand, though companies are exploring a range of strategies, including nearshoring, offshoring, insourcing and outsourcing, to address resource issues, ISG says. As they update IT infrastructures, insurers are increasingly adopting Agile methodologies and relying on cloud-based platforms.

“Digital transformation for insurers in this region will require major investments in cloud, data management and security,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “ITO service providers with expertise in these areas will be important partners in this process.”

The report also examines other trends affecting insurers in Australia and New Zealand, including the need for enterprises to retain intellectual property rights when adopting AI and the growing importance of controls to prevent data leakage from AI models.

For more insights into the challenges faced by insurance enterprises in Australia and New Zealand, along with ISG’s advice for addressing them, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ Insurance Services report for Australia and New Zealand evaluates the capabilities of 40 providers across four quadrants: Life and Retirement (L&R) Insurance BPO Services, Property and Casualty (P&C) Insurance BPO Services, Insurance ITO Services and Insurance ITO Services — Midmarket Next-gen.

The report names TCS and Tech Mahindra as Leaders in three quadrants each. It names Cognizant, Genpact, TSA and Wipro as Leaders in two quadrants each. Accenture, Capgemini, Cloud4C, DXC Technology, EXL, Fujitsu, IBM, Infosys, Iron Mountain, Kyndryl, Publicis Sapient, Randstad Digital, Teleperformance, Unisys and WNS are named as Leaders in one quadrant each.

In addition, EXL, HCLTech, WNS and Xceedance 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.

In the area of customer experience, Persistent system is named the global ISG CX Star Performer for 2024 among insurance services providers. Persistent system earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, which is part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

The 2024 ISG Provider Lens™ Insurance Services report for Australia and New Zealand 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, 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 more than 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.

Fonte: Business Wire

If you liked this article and want to stay up to date with news from InnovationOpenLab.com subscribe to ours Free newsletter.

Related news

Last News

RSA at Cybertech Europe 2024

Alaa Abdul Nabi, Vice President, Sales International at RSA presents the innovations the vendor brings to Cybertech as part of a passwordless vision for…

Italian Security Awards 2024: G11 Media honours the best of Italian cybersecurity

G11 Media's SecurityOpenLab magazine rewards excellence in cybersecurity: the best vendors based on user votes

How Austria is making its AI ecosystem grow

Always keeping an European perspective, Austria has developed a thriving AI ecosystem that now can attract talents and companies from other countries

Sparkle and Telsy test Quantum Key Distribution in practice

Successfully completing a Proof of Concept implementation in Athens, the two Italian companies prove that QKD can be easily implemented also in pre-existing…

Most read

CoStar Group Acquires Ag-Analytics, Augmenting Land.com Services and Capabilities

CoStar Group, Inc. (NASDAQ: CSGP) (“CoStar Group,” “we” or “our”), a leading provider of online real estate marketplaces, information and analytics in…

BJ’s Wholesale Club to Open in Brooksville, Florida, on February 21

BJ’s Wholesale Club (NYSE: BJ) announced today that its club in Brooksville, Florida, will open on February 21, 2025. The club, located at 13085 Cortez…

University of Phoenix College of Doctoral Studies Releases White Paper…

University of Phoenix College of Doctoral Studies has released a new white paper, “Economic Influence of AI on Career Optimism,” by Christine Marquis,…

Qurate Retail, Inc. Declares Quarterly Cash Dividend on 8.0% Series A…

Qurate Retail, Inc. (Nasdaq: QRTEA, QRTEB, QRTEP) today announced that an authorized committee of its Board of Directors declared the regular quarterly…

Newsletter signup

Join our mailing list to get weekly updates delivered to your inbox.

Sign me up!