Insurance enterprises worldwide are increasingly partnering with service providers to establish Global Capability Centers (GCCs). These centers enable insurers to access AI talent, modernize technology, reduce costs, and improve operational resilience amid market changes and economic uncertainty, according to the 2025 ISG Provider Lens® global Insurance Services – Strategic Capabilities report.
GCC Adoption in Insurance
The report highlights that GCCs are being implemented in phases to allow for:
- Faster setup of operations
- Predictable costs
- Lower operational risks
Insurers face challenges such as talent shortages, legacy systems, and the need for AI capabilities to stay competitive. GCCs provide a practical model for gradually integrating advanced capabilities while retaining core insurance functions like underwriting, claims, and customer support.
GCC Models Adopted
Insurance companies are choosing among several GCC implementation models based on their strategic needs:
- Build-Operate-Transfer (BOT)
- Build-Own-Operate-Transfer (BOOT)
- Build-Operate-Transform-Transfer (BOTT)
- Capability Center as a Service (CaaS)
These models leverage providers’ offshore expertise while allowing insurers to maintain strategic control and achieve financial benefits during the provider-managed phase.
Regional and Talent Considerations
GCCs are predominantly being set up in regions with:
- Strong education systems
- Deep talent pools of underwriters, actuaries, and tech professionals
- Lower setup times (3–6 months) compared to direct hiring
This approach allows insurers to scale operations efficiently and accelerate modernization initiatives like AI adoption, cloud migration, analytics, and automation.
Leading Providers and Recognition
The report identifies leaders and high-potential companies in insurance GCC services:
- Leaders: Capgemini, Cognizant, EXL, Genpact, HCLTech, Infosys, Tech Mahindra
- Rising Stars: Persistent Systems, Zensar Technologies
- Customer Experience Star: Sutherland
Conclusion
GCC adoption in the insurance sector is transforming how enterprises access AI, manage costs, and modernize operations. By leveraging provider-managed centers and offshore talent, insurers can meet evolving business demands, accelerate digital transformation, and enhance operational resilience in a competitive global market.
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