HFS Horizons: Insurance Services, 2025

The HFS Horizons: Insurance Services, 2025 report is for insurance carrier executives, transformation leaders, and sourcing teams evaluating service providers that combine industry expertise, AI, and ecosystem capabilities across the insurance value chain.

Overview

HFS Horizons: Insurance Services, 2025 is a vendor evaluation that assesses 24 insurance service providers across three horizons of value, from functional transformation to full ecosystem orchestration. The study grades providers on their ability to help carriers embrace smart innovation, streamlined operations, and ecosystem alliances across property and casualty (P&C) and life and annuity (L&A) segments. HFS built the assessment on client, partner, and employee inputs, including reference checks with 35 active clients and 31 active partners.

Key findings

1. Horizon 3 Market Leaders include Accenture, Capgemini, Cognizant, Deloitte, EXL, EY, IBM, Infosys, PwC, and TCS. Horizon 2 Enterprise Innovators include DXC Technology, Genpact, HCLTech, KPMG, Sutherland, Wipro, and WNS. Horizon 1 Disruptors include Coforge, Hitachi Digital Services, LTIMindtree, Mphasis, Tech Mahindra, Virtusa, and Xceedance.
2. Horizon 3 leaders differentiate by modernizing legacy systems and driving outcomes through generative AI (GenAI) pilots, embedded distribution, advanced analytics, and ecosystem orchestration across P&C and L&A.
3. Named-client evidence spans the field: Accenture drove a 20% increase in customer satisfaction and a 15% increase in policy renewals for a life insurer, HCLTech delivered a 75% improvement in claims efficiency and a 1.5x boost in enterprise ROI for a US insurer, and Cognizant lifted customer adoption rates by 55% and cut time-to-market by 30% for insurers.
4. Client references rated functional digital transformation as their primary focus at 66% today, with only 9% prioritizing ecosystem development, a gap HFS expects to narrow over the next two years.
5. Core platform modernization anchors the market, with providers building around Duck Creek Technologies and Guidewire for cloud-based, modular policy administration, claims, and billing.

HFS finds that service providers have shifted from support roles to strategic partners that pair cutting-edge IT capabilities with industry expertise to deliver real business outcomes. HFS assesses that legacy infrastructure, workforce skill gaps, and regulatory pressures remain the persistent barriers, prompting providers to invest in InsurTech partnerships and workforce upskilling.

Research methodology

HFS evaluated 24 insurance service providers in 2025 using briefings, supporting documentation, and reference checks with 35 active clients and 31 active partners, augmented by analyst perspectives.

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