Insurance companies are facing many headwinds -– low investment portfolio returns, stagnating premium growth, rising costs, operational inefficiencies, insurtech-driven startups, and a hybrid, globally distributed, workforce.
ISG’s insurance practice specializes in business-technology strategies, partner-ecosystem advisory, cost optimization, modernization, IT, digital and cloud transformations.
We work with Life and Annuity (L&A), Property and Casualty (P&C), and Reinsurance companies. Our advisors cover quote to claim. We have advised in new business, underwriting and claims management, as well as policy administration that includes
provider and platform selections. We have supported insurers with operating model review and redesign, outsourcing and offshoring, and infrastructure consolidation.
ISG is a leader in providing partner-ecosystem advisory and benchmarking services to guide our clients to successfully bid, negotiate or renegotiate contracts. With the emergence of digital technologies, we created our robust sourcing methodology to help you achieve appropriate vendor/provider relationships to address newer business and IT models, such as Agile, DevOps and AI. Plus, our tools can help you manage your ongoing third-party relationships and risks.
ISG maintains up-to-date information about emerging technologies from diverse sources, including directly from top business process, technology, TPA (third-party administrator), insurtech and platform suppliers. This enables us to provide deep, unbiased insights about supplier partnerships for automations, transformations, and traditional, outcome-based or futuristic partner models.
We are prepared to invest toward the success of our clients. With ISG, you can identify the root causes of cost, productivity and service quality issues, and design a roadmap to achieve excellence and sustainable results.
ISG's recent study on the insurance industry shows insurers are focusing on profitability over growth.
ISG is a leader in proprietary research, advisory consulting and executive event services focused on market trends and disruptive technologies.
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Learn MoreThe 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.
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.
The transformation of business designs and operating models is a fundamental necessity for North American insurance carriers aiming to sustain competitiveness and effectively navigate the complexities of contemporary market conditions. This imperative arises from several critical factors, including customers’ evolving expectations, volatile geoeconomic circumstances and the increasing frequency and severity of property and life losses primarily attributed to climate change.
