ISG Provider Lens Report Finds the Industry Embracing Robotic Process Automation, Social Media and Robo Advisors
The insurance industry is rapidly adopting new technologies, and carriers are looking for business process outsourcing providers to help solve their business problems and increase profits, according to a new report published today by Information Services Group, a leading global technology research and advisory firm.
The 2019 ISG Provider Lens Digital Insurance BPO Services Archetype Report also finds many insurance carriers looking for BPO providers that can help them improve their brand visibility, increase customer retention, and stay ahead of the competition by deploying emerging technologies like artificial intelligence and robotic process automation.
“In the highly competitive insurance industry, carriers are looking for new ways to serve customers,” said Jan Erik Aase, director and global leader, ISG Provider Lens Research. “Many carriers now allow customers to purchase a policy on their mobile device or browse through an online insurance marketplace to select the best policy. BPO providers can help insurers develop these capabilities and more.”
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When looking for BPO providers, many insurance carriers want nearshore or onshore operations, instead of offshore services, the report says. An offshoring model for non-critical solutions still exists, but for transformation-related projects, carriers are beginning to look for other options.
Driving the carriers’ focus on new technologies and their need for BPO providers is a focus on better customer experience, the report adds. Carriers are deploying robo advisors to provide personalized services to customers.
In addition, the adoption of robotic process automation across the industry is improving productivity and saving time and costs. With machine learning, the insurance industry is transforming the product lifecycle, from purchase to claims, as a touchless process.
Many insurance carriers increasingly are using social media and mobile apps to interact with customers, the report says. At many carriers, the purchase of insurance policies is just a click away, while social media is allowing carriers to predict customer sentiment and deliver tailormade responses.
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The 2019 ISG Provider Lens Digital Insurance BPO Services Archetype Report examines four different types of clients, or archetypes, that are looking for BPO vendors with insurance expertise. The report evaluates the capabilities of 12 providers to deliver services to the four archetypes:
Conventional Buyers: This archetype represents insurance carriers interested in buying point solutions focused on non-critical transactions and other parts of insurance processes. These clients want to reduce the cost of transaction processing by outsourcing some functions to offshore labor.
Bot Deployers: These insurance companies are focused on cost savings, accuracy and increased efficiency. Their processes have matured enough to implement robotic process automation. Unlike conventional buyers, these clients have the potential to automate several processes. They want to use cognitive technologies for better insights and analytics.
Digitally Progressive Buyers: These clients are looking to embark on the digital journey. Processes are matured and have little or no burden of legacy systems. These insurance carriers are looking for providers to bring digital solutions to improve processes. They want to leverage emerging technological solutions like cloud platforms and robotic process automation, and they often use elements of the internet of things and cognitive technologies.
Integrated Solution Buyers: These clients are looking to outsource end-to-end insurance services, including complex functions. The objective is to achieve better outcomes with minimal investment on the enterprise front. These clients are looking for a strategic partnership.
Among the providers ISG evaluated, EXL and WNS were named leaders across all four archetypes. Capgemini, Cognizant and Infosys were named leaders across three, DXC Technology was named a leader in two, and NTT DATA was named a leader in one archetype.
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