The L&P insurance BPO market is currently evolving to assist insurers beyond providing them with only labor arbitrage benefits. Cost reduction – the consistent primary driver of outsourcing – has now become more about leveraging automation and increasing operational efficiencies through domain expertise and analytics. Apart from operational cost reduction, insurers are also demanding faster product introduction support, customer experience delivery, regulatory compliance, and technology capabilities from their service providers.
Service providers are consequently expanding their capabilities to leveraging digital technologies such as automation, analytics, IoT, and more recently blockchain; providing services close to the insurers through onshore and nearshore delivery centers; and providing an integrated platform-based delivery under Business Process as a Service (BPaaS) construct. The current service provider landscape clearly reflects that those who are investing wholeheartedly in all these delivery capabilities are the ones that are able to drive market growth and those who are not are finding it difficult to compete in the market.
While at present, competition in the L&P insurance BPO market has geographical tenets to it as different geographies require service providers to take different capabilities to the market, it is expected to standardize more in the future as insurers across the globe invest in similar capabilities to drive customer experience and top-line growth. Competition in the market is also expected to intensify as providers start exploring other relatively untapped geographies in search of growth. Continental Europe is one such market where service providers are eyeing opportunities; however, due to the fragmented nature of the region, it would be some time before significant traction is observed here. From the buyer size standpoint, small- and large-sized buyers continue to be the leading outsourcing adopters, and growth potential exists in the mid-sized buyer market too.
In this research, we analyze the global L&P insurance BPO service provider landscape. We focus on:
This report examines the global L&P insurance BPO market and its service provider landscape. It provides detailed analysis of the vision & delivery capabilities as well as market impact of service providers and their relative position on the Everest Group PEAK Matrix. It will assist key stakeholders (insurance providers, service providers, and technology providers) understand the current state of the L&P insurance BPO service provider landscape.