Blog
Intelligent Insurance Operations: Key Takeaways from ISG’s 2025 ITO Services Specialists Quadrant
- Last Updated: Jan 28, 2026
- 5 min read
Share on
The global insurance industry is undergoing a foundational transformation, driven by economic volatility, evolving policyholder needs, regulatory changes, and AI innovation. In the newly released ISG Provider Lens® Insurance Services Specialists 2025 Quadrant Report, Hexaware has been named a Leader in the Insurance ITO Services Specialists category, recognized for its AI-first platforms, domain-rich methods, and outcome-driven pricing that drive transformation and measurable impact for insurers This report also highlights how leading providers are enabling this shift, from legacy modernization to truly intelligent, orchestrated insurance operations.
What Sets 2025’s Global ITO Leaders Apart
Here are the most important market trends and the standout characteristics of 2025’s global ITO leaders:
Intelligent Insurance: From Siloes to Orchestrated Ecosystems
Insurers are moving away from fragmented systems and processes. Today’s leaders deliver orchestrated, AI-powered insurance operations that integrate seamlessly across underwriting, claims, distribution, and customer engagement. This shift blends insurance operation automation, data, and human oversight for greater precision, personalization, and proactive value creation.
Modular AI and Agentic Architectures: Autonomy at Scale
The rise of modular, agentic AI in insurance is reshaping the entire value chain. Providers are deploying AI agents that collaborate and adapt in real time across core functions—underwriting, claims, and policy servicing. straight-through processing using AI-powered triage, document ingestion, and analytics is now a hallmark of operational efficiency and accuracy.
Composable, Cloud-Native Transformation
Insurers are rapidly migrating to cloud-native, API-first platforms and composable architectures. This approach enables rapid innovation, seamless integration, and flexible scaling, mixing and matching capabilities to align with business goals and customer segments. Modernizing legacy systems is now a strategic imperative, not a back-office project.
Embedded Distribution and Ecosystem Integration
Insurance is no longer distributed solely through traditional channels. Insurance ecosystem-driven, embedded models are becoming mainstream, delivering insurance in context through retail, fintech, health, and wellness platforms, and leveraging IoT for real-time, personalized policies.
Strategic Partnerships and Outcome-Based Engagements
The industry’s tone has shifted from disruption to collaboration. Insurers now seek strategic partners—not just vendors—to help operationalize business outcomes such as reduced claims cycle times, improved underwriting, and enhanced experiences. Leading providers are evaluated on their ability to deliver transformation and measurable results, not just cost savings.
Intelligent ITO: AI, Automation, and Experience at the Core
ITO providers are embedding AI, automation, and platform engineering into their core offerings. GenAI, agentic AI, and predictive analytics are powering a move from reactive to proactive, adaptive workflows. This is driving policyholder-centric innovation and delivering personalized experiences at scale.
Who Sets the Pace? Meet ISG’s 2025 Global Leaders in Insurance ITO Services
Out of 48 global companies assessed, ISG named 9 as Leaders in Insurance ITO Services Specialists for 2025, based on comprehensive offerings, innovation, and market presence:
- Hexaware: Excels in insurance IT modernization with AI-first platforms, domain-rich methods, and outcome-driven pricing. Delivers end-to-end transformation and flexible commercial models, making it highly attractive for cost-conscious carriers.
- Coforge: Drives insurer modernization via deep platform partnerships and agentic AI delivery, with proven transformation outcomes.
- Ensono: Stands out for end-to-end modernization, flexible platform strategies, and predictive AI.
- GFT: Recognized for Guidewire expertise, AI innovation, and cloud migration frameworks.
- HTC Global Services: Known for core system mastery, rapid deployment accelerators, and creative pricing models.
- Kyndryl: Empowers insurers to modernize infrastructure with deep mainframe expertise and advisory-led transformation.
- Tiger Analytics: Delivers end-to-end AI transformation with domain-specific solutions and accelerators.
- ValueMomentum: P&C-focused, offers deep domain expertise, AI-led modernization, and strong engineering capabilities.
- Zensar Technologies: Combines domain experience, prebuilt accelerators, and modular platforms for rapid digital transformation.
The Bottom Line
The convergence of ITO and BPO is transforming insurance, blurring technology and operations into unified, intelligent frameworks. Success now hinges on modular transformation, AI orchestration, data governance, ecosystem partnerships, new talent models, and an unwavering focus on outcomes. As ISG notes, future leaders will be those who orchestrate transformation across the value chain and deliver measurable, customer-centric value at scale.
FAQs
Hexaware is recognized by ISG as a Leader in Insurance ITO Services Specialists 2025 for its ability to deliver end-to-end, AI-first insurance transformation. Its domain-rich methods, industry platforms like RapidX®, Tensai®, and Amaze®, and outcome-driven commercial models help insurers modernize legacy systems, orchestrate intelligent insurance operations, and achieve measurable business results across underwriting, claims, distribution, and customer experience.
Many insurance transformations stall due to point-solution implementations, fragmented vendor ecosystems, and modernization efforts that focus on technology without aligning to business outcomes. Other pitfalls include underestimating legacy complexity, neglecting data governance, and treating AI as an add-on rather than embedding it into core workflows. Successful insurers adopt modular, cloud-native architectures, prioritize orchestration across the value chain, and partner with providers that tie transformation to clear KPIs.
Insurers can evaluate readiness by assessing the flexibility of their core systems, data quality and accessibility, cloud maturity, and operating model agility. Equally important is organizational readiness—skills, governance, and the ability to shift from siloed insurance operations to AI-enabled, cross-functional workflows. ISG notes that insurers best positioned for transformation have a clear modernization roadmap and strategic partners capable of delivering outcomes, not just technology upgrades.
Digital transformation strengthens regulatory compliance by improving data traceability, auditability, and real-time reporting. AI-enabled analytics and automation help insurers monitor risk, detect anomalies, and respond faster to regulatory changes. Cloud-native platforms also support standardized controls and security frameworks. When implemented correctly, digital transformation does not increase compliance risk; it enhances transparency, governance, and regulatory confidence.
Author
Nidhi Alexander
Chief Marketing Officer
Nidhi Alexander is the Chief Marketing Officer at Hexaware, responsible for developing and building the brand and driving growth across its suite of technology services and platforms. She is responsible for brand, content, digital marketing, social media, corporate initiatives, industry analyst relations, media relations, market research, field marketing, and demand generation across channels. Nidhi has been anchoring market influencer relationships globally for Hexaware before taking over the marketing function. Within two years, she completely transformed Hexaware’s position across rankings from the industry analyst community. She has also helped build a strong sales channel via advisor-led deals for Hexaware. A recognized and accomplished marketing professional known for breakthrough results, Nidhi brings in diverse experience across brand building, analyst and advisor relations, field marketing, academic relations, employer branding, journalism, and television production over the last two and half decades. Before Hexaware, she was in leadership positions in firms like Infosys and Mindtree. She is a recipient of the Chairman’s award at Infosys, Mindtree, and Polaris. She started her career in journalism with Star Television (News Corp) and was associated with several award-winning news and current affairs programs like Focus Asia, National Geographic Today, Star Talk, and Prime Minister’s Speak. Nidhi holds a degree in English Literature from Jesus and Mary College, Delhi University, and a Masters in English Journalism from the Indian Institute of Mass Communication, Delhi. She currently resides in Bridgewater, New Jersey, with her husband and two children.
Read more
Related Resource
Blog
How Hexaware and ServiceNow FSO Are Reimagining Insurance Servicing
Blog
Zero License in Insurance: Reducing Non-Core License Spend with an AI Operating Layer
Blog
Digital Customer Journeys in Insurance: Building Omnichannel Experiences That Convert
Blog
Why Third-Party Administrators Remain Indispensable Even in the Agentic AI Era
Blog
Data and AI in Insurance Risk Assessment: From Static Models to Predictive Intelligence
Blog
The Future of Policy Administration Systems: Modernizing Insurance Core Platforms
Blog
Top 7 Benefits of Migrating Insurance Systems to Cloud Platforms
Blog
End-to-End Claims Automation: Real Results From AI-powered Systems
Blog
Fix the Leak Before You Chase Growth: Why a Customer Lifetime Value Maximization Solution Is Insurance’s North Star
Blog
The Future of Personalized Annuities: From Static Products to Dynamic Life Solutions