Rate Card Benchmarking

The global insurance industry is at a pivotal juncture, driven by economic volatility, evolving policyholder expectations, regulatory changes and potential AI innovations. Insurers are navigating a landscape that demands agility, personalization and operational excellence. The increasing number of digital-native consumers, climate-related risks and cybersecurity threats are reshaping traditional business models, compelling insurers to rethink their enterprise designs and core strategies.

Public cloud platforms form the core of enterprise AI ecosystems, offering the scalability, elasticity and specialized infrastructure needed to train and deploy large models efficiently. ISG research shows that combining on-premises control with cloudbased acceleration enables organizations to integrate AI-powered intelligence into existing workflows and streamline their operations. Enterprises have been able to reduce development complexity, accelerate time to value and scale innovations from predictive analytics to autonomous operations by leveraging cloud-native AI services, pretrained models and GPU-optimized instances.

Digital engineering has become the core capability that helps incumbent insurance enterprises modernize legacy systems, accelerate innovation and deliver seamless policyholder experiences across multiple channels. As these enterprises face growing competition from insurtech, neo insurers and digital insurers, shifting policyholder expectations and increasing regulatory complexities, digital engineering services offer the technical architecture, development expertise and operational frameworks needed to transform outdated monolithic systems into flexible, cloud-native, API-driven ecosystems. This change goes beyond technology; it involves fundamental shifts in how insurance organizations design, develop, deploy and maintain digital tools that are increasingly essential for staying competitive.

The insurance industry is facing its most significant technological transformation since the onset of digitization. GenAI and Agentic AI fundamentally reimagine the way insurance carriers, brokers and managing general agents (MGAs) operate, engage with customers, assess risk and deliver value. These technologies have matured from experimentation stage into production-ready platforms, reshaping the insurance competitive landscape.

Amid economic volatility, ongoing inflation, talent shortage, technological changes and rising competition, incumbent insurance enterprises encounter unprecedented challenges that demand both cost optimization and capability growth. In this environment, providers offer models such as build-operatetransfer (BOT), build-own-operate-transfer (BOOT), build-operate-transform and transfer (BOTT), capability center as a service (CaaS) or global capability centers (GCCs) as distinctive solutions. These models represent structured approaches, delivering both short-term and operational gains alongside long-term strategic benefits, effectively addressing the complex, and sometimes conflicting, needs of insurers.