The deal was expected to bolster Wipro’s presence in the banking, financial services & insurance (BFSI) space, its largest vertical contributing about 30% to the total revenues.
In the last few years, the Property and Casualty (P&C) insurance industry has experienced numerous challenges due to the pandemic, regional geopolitical conflicts, and strained macroeconomic conditions. Today, to stay ahead of the competition and maintain business resilience and profitability, insurance carriers are partnering with providers to modernize their existing technology landscape and support evolving talent needs. Recognizing this opportunity, providers are investing in talent skilling initiatives, efficient business solutions, improved delivery capabilities in geopolitically stable regions, and digital transformation strategies to address carriers’ evolving business needs.
In this report, we assess the capabilities of 21 Application and Digital Services (ADS) providers and feature them on Everest Group’s ADS in P&C Insurance PEAK Matrix®. The study will enable buyers to choose the best-fit provider based on their sourcing considerations, while providers will be able to benchmark their performance against each other.
In this report, we share:
Industry: Insurance Information Technology
Geography: global
The PEAK Matrix® provides an objective, data-driven assessment of service and technology providers based on their overall capability and market impact across different global services markets, classifying them into three categories: Leaders, Major Contenders, and Aspirants.
Leading insurance organizations seek to be more data-driven in their business decisions by harnessing the full potential of the data that resides within their enterprise boundaries. With the evolving technology landscape, real-time experience management, and explosion of data types, insurers are increasingly leveraging real-time insights to improve customer experience. In this blog, we will explore the potential benefits for carriers of unlocking data in the insurance value chain.
Insurance enterprises are facing a tough business environment marred by macroeconomic challenges, heightened natural catastrophes, and unfavorable interest rates. This is creating an urgency to re-evaluate underwriting and pricing models by taking data-driven approaches.
Data can help insurers unleash the next growth wave, enable targeted cross and up-selling generated through higher customer engagement levels, and provide a 360-degree view of their customer needs. For example, embedding data and analytics and Artificial Intelligence and Machine Learning (AI/ML) models within the claims workflow can enable zero-touch insurance claims transactions. The digital interaction process can flow seamlessly from intaking all filed claims consistently across channels, validating and assigning complexity scoring to each claim, segmenting and routing the claims based on complexity, to finally settling them as quickly as possible.
Infusing intelligence across insurance operations while investing in data and analytics capabilities can generate a surplus economic value of US$ 874 billion, according to Everest Group research, as illustrated below.
Exhibit 1
Source, Everest Group
However, the industry faces challenges to effectively unlock the full potential of data in insurance, including:
Insurers are not only striving to make data-driven decisions but also beginning to explore new business models by combining available big data with advanced AI and ML capabilities.
Insurers are shifting from being risk mitigators to playing more of a risk avoidance role with data, cloud, and platforms being their foundational components. Digitization of the value chain, new business models, and underwriting transformation are helping insurers expand their roles from underwriters to risk decision partners who predict unforeseeable risks and ensure protection.
Data from connected devices is becoming a prominent source to assess and prevent risks. To illustrate, in the auto insurance industry, sensors, blind-spot assist, collision avoidance tools, and other safety systems have already been pre-built into vehicles using behavioral data to help improve safety.
Vast data stores are opening up opportunities to price risk more accurately and offer personalized product structures. For instance, utilizing climate and other third-party data empowers insurers to assess geographical areas that present greater catastrophic risk and charge higher premiums instead of measuring these types of risk through traditional approaches.
Deploying AI and other latest technologies not only assists with ingesting unstructured data but also helps generate actionable insights that previously were unavailable to underwriting and claims teams. Insurance data and analytics spend is growing at an accelerated rate of over 25% annually as insurers look to transition to being data-driven enterprises.
Leveraging data from different types of sources such as wearables, internet of things (IoT) sensors, and telematics through clients’ lifestyles and behavior, insurers are embarking on a new age digitized underwriting process. Smart loss capture and IoT sensors are expected to bridge the gap between the traditional claims processing mechanism to zero-touch claims transactions.
Insurers need to actively engage with the ecosystem of data generated by the insurance enterprises as well as information coming in from external sources such as InsurTechs, and services and technology partners. By doing this, insurers can create and implement strategies that will lead to unmatched automated decision-making support that they can leverage to drive growth and efficiency and extract maximum value.
Exhibit 2
Source, Everest Group
Data will be a central driving force to strengthen competitiveness in the industry moving forward – allowing carriers to leave behind their traditional approach of solely being risk protectors and move them toward being risk preventers.
As insurers look to become data-driven, data centers and cloud services can enable companies to respond to evolving customer needs, improve resiliency, instill agility, and drive enhanced operational efficiency. Similarly, leveraging AI/ML models and predictive analytics offer a major solution to the challenge of providing real-time actionable insights. Insurers that can create true differentiation and impact using internal and external data will be able to future-proof their business and be seen as leaders in times to come.
To learn more, check out our State of the Market Report 2022 – Unveiling the Economic Value of Data and the Road to Actualization. To discuss more on these topics and share your perspectives with our analyst team, contact [email protected], [email protected], [email protected], and [email protected].
Low code/no code development holds promise for banking, financial services, and insurance (BFSI) firms to gain agility and cost-effectively build innovative technology solutions – without needing professional developers who are in short supply. Learn about the market potential and provider landscape in this blog.
Digital consumption demand in the (BFSI) industry has seen a heavy uptick in the past year, driven by customer expectations for enhanced experience and the adoption of flexible work options to run businesses.
BFSI firms are under pressure to achieve profitability in an already volatile market and need to be more agile, collaborative, and responsive. These firms have to build stronger ecosystems and overcome the obstacles created by legacy systems.
This has increased demand for professional developers to manage complex technology stacks. But the fast digitization pace has caused enterprises to focus their limited development talent on workflow customization and business-as-usual activities instead of innovation and core product engineering.
Low code/no code technology answers these issues.
Tapping into low code/no code technology
Low code/no code technology has paved its way through these circumstances, easing operations and optimizing costs. This approach provides a visual modeling development tool that business teams can easily use in collaboration with the IT department, reducing the need to hire professional developers who are in short supply.
The exhibit below illustrates the drivers for low code/no code adoption.
BFSI firms are successfully using this method. Let’s look at some examples:
Low code/no code benefits
Benefits of low code/no code technology for BFSI firms include:
BFSI enterprises also have enhanced customer satisfaction by using low code/no code to quickly and effectively establish digital omnichannel experiences. This has satisfied customers’ appetites for remote consumption and also enabled the ability to personalize services by easily integrating other technologies such as Artificial Intelligence (AI), Machine Learning (ML), and Internet of Things (IoT.) Self-service applications for 24/7 support can be set up with less time and cost using low code/no code.
See common use cases across the BFSI in the image below.
Evolving the low code/no code ecosystem
The low code/no code technology provider landscape is made up of many players as, illustrated below. These include:
Grabbing the opportunity
Many BFSI firms who have adopted low code/no code technology are reaping the benefits, while others have experienced roadblocks such as limited options to scale the technology across the organization. To achieve success, the right procedures must be set up to avoid any pitfalls. Understanding the internal and external capabilities and challenges while moving along the path is critical.
BFSI enterprises should follow our CASE framework and have a clear vision, assess internal resources, select technology, and execute their roadmap as illustrated below:
For a detailed view, read our report, BFSI Enterprise Adoption Guide for Low-Code/No-Code Technology – Market Trends and Provider Landscape, which covers the market challenges, drivers, and way forward in the low code/no code ecosystem from a BFSI perspective. To discuss this topic, please reach out to [email protected], and [email protected].
Read more about low-code adoption in our blog, Selecting the Right Low-code Platform: An Enterprise Guide to Investment Decision Making.
Catch Everest Group Partner Ronak Doshi as he joins experts from the insurance industry to discuss:
Tuesday, September 13, 2022, at 1:00 pm CST, 2:00 pm EST, 6:00 pm GMT, 11:30 pm IST
Live, virtual event
Ronak Doshi
Partner, Everest Group
Henry Wright
Chief Experience Officer, Truist Insurance
Tom Ford
Head of Insurance Consulting, NTT DATA
Lisa Woodley
General Manager, Nexient
BFS and Insurance IT Specialists
Retirement Industry Challenges
Retirement Services
F&A Operations Transformation
Claims Operations
VIEW THE FULL REPORT
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