Many insurance companies in Asia Pacific are starting to implement advanced technology platforms to better capture additional business in a fast-growing region for the industry, according to a new research report published by Nasdaq-listed Connecticut-based Information Services Group (ISG), a global technology research and advisory firm.
The 2024 ISG Provider Lens™ Insurance Platform Solutions report for Asia Pacific says that insurers need modern core platforms to remain competitive.
“Companies are eagerly exploring new systems so they can move away from technology environments they have used for decades,” said Mr Michael Gale, partner and regional leader, ISG Asia Pacific. “There has been a massive realisation that meeting new customer demands will require investing in technology.”
While insurance is a younger and faster-growing industry across the Asia Pacific than in North America or Europe, its expansion is fastest where insurance markets are least mature, such as in India, Thailand and Malaysia, ISG says. Insurance companies are upgrading systems most rapidly in these markets, seeking to take advantage of double-digit growth rates in some product categories.
Many insurers in the region are making new technology investments despite strong headwinds, including tight budgets and often weak balance sheets, ISG says. High costs, a wide range of technology choices, and the risks of implementing new systems have slowed the process at some companies.
However, moving from mainframe-based infrastructure to modern digital platforms enables faster time to market and many other benefits, including higher efficiency and scalability, tighter security, better decision-making, and improved customer experience, the report says.
Data systems
To get the most benefit from new technologies, especially AI platforms that can improve operations and decision-making, many insurers in Asia Pacific are recognising the need to modernise their data systems, ISG says.
“AI cannot produce optimal results from siloed or unreliable legacy data,” said Mr Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “Qualified providers are helping insurance companies clean up their data before implementing the new generation of tools.”
The report also examines other Asia Pacific insurance industry trends, including the growing importance of scalable policy administration systems and the role of low-code/no-code platforms in modernization projects.
The 2024 ISG Provider Lens™ Insurance Platform Solutions report for Asia Pacific evaluates the capabilities of 28 providers across two quadrants: Life and Retirement Insurance Platform Solutions and Property and Casualty Insurance Platform Solutions.
See the ISG Provider Lens™ Focal Points briefing here.