ISG Provider Lens™ Focal Points - Insurance Services - Strategic Capabilities (Insurance Digital Engineering Services) - Global 2025

How to Get the Most from Insurance Digital Engineering Services Providers

Globally, incumbent insurers are increasing their digital engineering spend to modernize their layered legacy estates and improve interoperability with cloud platforms for AI readiness. Talent scarcity in mainframe and older stacks is accelerating reliance on service providers and partner-led delivery. Service-provider-managed constructs are preferred over enterpriseowned GCCs to speed modernization and mitigate risk. This shift prioritizes measurable impact, interoperability and sustained change over one-off replacements. Sandhya Navage, co-author of the ISG Provider Lens® Insurance Services — Strategic Capabilities 2025 (Insurance Digital Engineering Services) report, states, “Digital engineering empowers insurers to break free from legacy constraints, fostering a culture of continuous improvement and adaptation.”