Analytics, AI Transform Insurance Business Operations
Enterprises establish data-centered processes to improve decision quality, service performance and workforce productivity, ISG Provider Lens® report says
STAMFORD, Conn., October 19, 2026--Insurance companies are embedding analytics, GenAI and agentic AI across core operations to support growth, risk management and improved customer experience, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm.
The 2026 ISG Provider Lens® global Specialty Analytics and AI Services — Insurance report finds that growing volumes of data and increasingly complex risks are driving insurers to reshape their operating models. Climate-related exposures, cyberthreats, geopolitical uncertainty and changing customer behavior require them to evaluate a wider range of information sources. As they bring AI into production, enterprises need more AI transparency, explainability and accountability to meet regulatory requirements.
"Insurance is not short of data; it needs intelligence that delivers the right context when decisions matter most," said Guido Tamburini, partner and head of Banking, Financial Services and Insurance at ISG. "The market is moving toward systems that make expertise more effective without removing human accountability."
Underwriting continues to receive the largest share of analytics and AI investment. Companies are adopting intelligent document processing, underwriting copilots and predictive risk models. These capabilities accelerate information gathering, reduce repetitive administration and support more consistent evaluation of risks for both personal and commercial lines. AI augments rather than replaces the expertise of underwriters, allowing them to spend more time assessing complex sets of risks.
Claims performance and customer experience remain important differentiators as insurers seek to improve operations. Companies are investing in claims triage, summarization, fraud detection and conversational intelligence for customer interactions. These capabilities support faster claims handling, greater consistency and more timely responses when customers need assistance. Segmentation and next-best-action recommendations help companies uncover cross-selling opportunities, improve retention and increase customer lifetime value.
To prepare for broader AI deployment, insurers are modernizing cloud-based data foundations and enterprise knowledge-management frameworks. They are also connecting policy and claims records with telematics, geospatial information, images, documents and third-party risk datasets. AI-ready architectures improve data quality, accessibility and contextualization for decisions in multiple business functions. Companies are strengthening AI governance with responsible AI practices, AI model monitoring and staff training, ISG says.