Expanded capabilities improve accuracy, compliance and employee experiences, ISG Provider Lens® report says

STAMFORD, Conn.: #Benefits--Organizations in the U.S. are modernizing health and welfare benefits operations through unified platforms, automated workflows and employee-centered support, 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 2026 ISG Provider Lens® H&W Benefits Administration report for the U.S. finds that growing portfolio complexity, rising healthcare costs and changing employee expectations are reshaping benefits administration models. Companies are managing health plans, reimbursement accounts, voluntary programs, wellness offerings and retiree coverage across numerous systems. To address increasing challenges, they are seeking more integrated operating models that support workforce experience and operational effectiveness.

“Employers are no longer evaluating benefits administration solely as a back-office function,” said Stacey Cadigan, partner, ISG Human Capital Management and Enterprise Transformation. “They are looking for operating models that protect data quality, support changing requirements and make benefits interactions easier for employees.”

Many enterprises in the U.S. are replacing fragmented traditional tools with ecosystems that link HR platforms, payroll systems, carriers and benefits vendors. Enrollment administration, eligibility management, dependent verification and carrier connectivity remain key investment areas. Organizations are deploying new AI, automation and analytics capabilities to increase operational visibility and improve service delivery.

Regulatory requirements are becoming more central to benefits administration strategies. When evaluating service providers, enterprises prioritize support for compliance obligations related to COBRA, HIPAA and other regulations. Audit readiness and stronger documentation practices are becoming more important as requirements expand. Companies also want consistent execution of participant-related processes across their operations.

Employee experience is becoming a central consideration in benefits strategy. Companies want to allow people to access information, complete transactions and resolve inquiries through intuitive digital channels. Benefits navigation, decision-support tools, mobile experiences and omnichannel engagement are gaining prominence. These approaches reduce participant effort while preserving personalized support for more complex needs, ISG says.

“Analytics and digital engagement are becoming essential parts of effective health and welfare administration,” said Gaurang Pagdi, lead author of the report. “Organizations need integrated capabilities that provide accessible employee support under strong operational discipline.”

The report also explores other H&W benefits administration trends, including growing demands for real-time eligibility verification and advanced benefits intelligence.

For more insights into the benefits administration challenges faced by U.S. enterprises, along with ISG’s advice for addressing them, see the ISG Provider Lens Focal Points briefing here.

The report evaluates the capabilities of 16 providers in one quadrant: H&W Benefits Administration Services.

The report names Alight, Aptia, bswift, Businessolver, TELUS Health and WTW as Leaders in the quadrant.

A customized version of the report is available from Businessolver.

The 2026 ISG Provider Lens H&W Benefits Administration report for the U.S. is available to subscribers or for one-time purchase on 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 and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.

Fonte: Business Wire