target audience: TECH SUPPLIER Publication date: Aug 2024 - Document type: Market Presentation - Doc Document number: # US49909423
Exploring the Impact of GenAI on the Insurance IT Services Market: A Close Look at Commercial and Operational Opportunities for IT Service Providers
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Abstract
This IDC Market Presentation highlights the impact of generative AI (GenAI) on the IT services market. It explores opportunities GenAI t can unlock by identifying commercial and operational possibilities. Commercially, IT service providers can expand their service portfolios, better educate insurance carriers, and supercharge business transformations by leveraging generative AI. Operationally, providers can become AI-enabled service experts, meeting carrier needs more effectively, expediting delivery services, and offering more competitive solutions.
In the AI Everywhere era, competition in the insurance IT sector will be driven by IT service providers' ability to demonstrate industry-specific expertise, understand insurers' digital transformation goals, and integrate generative AI into their services and advice. Over 65% of insurers admit they are not fully aware of how their IT service providers use AI, including generative AI, to enhance service quality or portfolios. Insurers typically rely on IT service providers for AI implementation projects, but there is significant room for improvement. Providers should advise on technical approaches as well as emphasize business benefits, focus on key metrics, and be flexible. They should drive consistency across the business, support internal digital transformation efforts, transfer skills, engage more deeply, and accept risk-reward contracts.
This analysis draws on wave 1 of IDC's Future Enterprise Resiliency and Spending (FERS) Survey and IDC's 2023 EMEA IT services data. The presentation was shared with clients in July 2024.