Insurers partner with providers to reduce transition risk and create value from Guidewire platforms, ISG Provider Lens^® report says

Property and casualty insurance carriers are turning to the Guidewire ecosystem to reshape core technology programs, seeking dependable digital operations, disciplined AI use and continuous improvement, 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 Guidewire Services Ecosystem report finds that insurers are scrutinizing core transformation initiatives as they grapple with competitive pressures, rising operating costs and exposure to catastrophic events. Many early Guidewire adopters operate heavily customized on-premises environments with high technical debt, aging integrations and incomplete documentation. Moving these environments to the cloud requires them to remediate integrations, rationalize product models and modernize surrounding digital systems.

“Guidewire Cloud programs succeed or fail well before the first workload moves,” said Guido Tamburini, partner and head of Banking, Financial Services and Insurance at ISG. “Carriers must use the transition to unwind customizations, repair data and integration foundations and establish release practices that maintain value.”

Carriers are treating cloud migration as an opportunity to reassess claims, billing and other processes, identifying customizations to remove and cloud capabilities to add. Post-cloud feature planning and analysis of the impact of new releases are becoming important priorities, along with automated regression testing and management of technical debt.

Reducing program and operational risk is another central concern. Data conversion, financial reconciliation and undocumented integration dependencies can disrupt critical insurance operations. Carriers are seeking phased cutovers with automated validation, archive strategies and production readiness. Those experiencing recurring incidents need structured triage, root-cause elimination and proactive monitoring.

Core modernization is also being used to shorten product-launch cycles and improve customer and agent journeys. Carriers are adopting standards-based templates, product rationalization and rating integration to address bottlenecks. Some are using native Guidewire digital capabilities, while others favor composable experiences around Guidewire as the system of record.

Cloud migration is taking place alongside rapid AI adoption in many organizations. Companies are applying assistive AI in areas where they can maintain human oversight, controlled data access and reliable validation. Autonomous agentic execution remains less prevalent because consumer-facing insurance decisions require accountable review. Insurers carefully assess AI capabilities for their integration with existing tools and expect each use case to produce measurable results before it is scaled, ISG says.

“AI can improve delivery and insurance operations when it is applied with appropriate controls,” said Manav Deep Sachdeva, ISG principal analyst and lead author of the report. “Insurers are turning to providers to implement reliable AI use cases that generate continuous, measurable value from cloud-based core systems.”

The report also explores other Guidewire ecosystem trends, including modernization of digital channels and replacement of legacy data and reporting components as insurers prepare for Guidewire Cloud.

For more insights into challenges relevant to Guidewire services ecosystem, along with ISG’s advice for addressing them, see the ISG Provider Lens Focal Points briefing here.

The report evaluates the capabilities of 32 providers in one quadrant: Guidewire Services.

The report names Accenture, Capgemini, CGI, Cognizant, Deloitte, EY, HCLTech, Hexaware, LTM, PwC, TCS, Tech Mahindra and Zensar Technologies as Leaders in the quadrant.

In addition, Stratus, An Infosys Company and ValueMomentum are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

In the area of customer experience, HCL Tech is named the global ISG CX Star Performer for 2026 among Guidewire Ecosystem providers. HCL Tech earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

Customized versions of the report are available from EY, Hexaware and PwC.

The 2026 ISG Provider Lens global Guidewire Services Ecosystem report is available to subscribers or for one-time purchase on this webpage.

About ISG

ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.

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Guidewire Cloud programs succeed or fail well before the first workload moves. Carriers must use the transition to unwind customizations, repair data and integration foundations and establish release practices that maintain value.