30 May 2025
We’re proud to share that IBM has been recognized as a Market Leader in HFS Horizons Research’s Insurance Services 2025 report. This recognition validates our approach to helping insurers not just adapt to change, but lead it, accelerating platform modernization, unlocking revenue from untapped data, deploying AI that delivers measurable ROI, enabling seamless ecosystem collaboration and redefining service delivery that creates competitive advantage.
As we move deeper into 2025, insurers are facing a wave of complex challenges: from digital disruption and intensifying regulatory pressures to data management issues, lack of standardization and growing concerns around fraud prevention and detection. These pressures are making it increasingly difficult to stay competitive and meet rising customer expectations.
As the only global consultancy within a major technology leader, IBM Consulting drives high-impact outcomes by leveraging advanced AI and a science-based approach to address the most critical challenges. We combine deep industry expertise with our AI-powered delivery platform IBM Consulting Advantage to deliver fundamental transformation and lasting change for clients. In fact, according to HFS Horizons, IBM is setting itself apart by combining industry-specialized platforms, end-to-end transformation capabilities and co-innovation models. We’re modernizing legacy systems and driving business outcomes through GenAI, embedded distribution, advanced analytics, and ecosystem orchestration. Our ability to bridge consulting, technology, and operations at scale positions us as a trusted transformation partner across both Property and Casualty (P&C) and Life and Annuities (L&A) insurance sectors.
Insurance success is no longer defined by stand-alone operations—it's determined by your ability to orchestrate a dynamic, interconnected ecosystem.
At IBM, we’re leading this shift, helping insurers reimagine how they operate, collaborate across the value chain, transform distribution and unlock profitable growth. Our proprietary IBM Insurance Services HubTM accelerates integration of core systems with a network of external partners and internal systems, enabling seamless workflows across policy administration, claims, contact centers, and billing. This level of orchestration is made possible through our understanding of how to maximize the use of data, enabling integrated, human-centric and value-added experiences for customers, agents and partners.
The integration of AI and gen AI is a key trend in the insurance sector, and IBM is at the forefront of this transformation.
According to an IBM Institute for Business Value study, insurers using gen AI to a large extent in customer systems are experiencing marked improvements in customer satisfaction over insurers not using gen AI at all, including a 14% higher retention rate and a 48% higher Net Promoter Score. IBM’s AI-powered solutions, like watsonx, Cognitive Document Processing, and the Insurance Insights Platform, are already deeply embedded in critical insurance workflows. From underwriting and fraud detection to claims triage and servicing, our pre-trained AI foundation models are accelerating decision-making and delivering measurable outcomes for our clients. HFS Horizons notes that IBM isn’t just embedding AI capabilities—we’re helping clients achieve real gains in efficiency, growth, and customer experience.
As modernizing legacy platforms remains a top priority for many insurers, IBM’s hybrid cloud framework provides a pragmatic, low-disruption path to modernize, optimize and migrate core insurance workloads to more agile, secure, and scalable environments.
We’re helping clients achieve quick wins, whether through workflow optimization or faster decision-making, while ensuring alignment with evolving security, risk and regulatory compliance requirements. We’re also investing in future-ready technologies, such as quantum computing, to address complex modeling, risk prediction and catastrophe analytics. These innovations are laying the groundwork for the next generation of actuarial capabilities and enterprise resilience.
IBM is more than a technology and business process outsourcing provider. We are an innovation and value-creation partner. We help Property and Casualty (P&C), Life and Annuities (L&A) and Group Benefits insurers operationalize the future of work by enhancing human potential with intelligent automation and digital assets to co-create service models. Furthermore, as we continue to scale our BPO capabilities and expand our Insurtech collaborations, IBM remains focused on being the trusted transformation partner for insurers navigating today’s complexity and tomorrow’s possibilities.
The insurance industry is witnessing a significant shift towards platform ecosystems and modular solutions, where insurers are seeking customizable solutions designed to meet specific needs.
Our insurance clients benefit from IBM's strategic partnerships with AWS, Microsoft, Salesforce, Adobe and Palo Alto as well as collaborations with industry-specific platforms and leading Insurtechs. This ecosystem approach helps carriers bring new solutions to market faster—whether for embedded insurance, AI-first customer experiences or digital claims management.
HFS Horizons highlights IBM's leadership in data and AI experiences, recognizing our commitment to helping insurers make smarter, faster and more compliant decisions that drive measurable business outcomes.
The future of insurance belongs to organizations that can harness technology, data, and ecosystems to deliver exceptional experiences while managing risk and driving profitable growth. Let’s build the future of insurance, together.
HFS Horizons Research is a leading global research and advisory firm helping Fortune 500 companies through IT and business transformation with bold insights and actionable strategies.
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