Companies partner with service providers on digital transformations to meet economic, climate, customer service challenges, ISG Provider Lens™ report says
SYDNEY–(BUSINESS WIRE)–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: NASDAQ:), 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…
Click Here to Read the Full Original Article at All News…
