Market uncertainty & volatility, increasing competitive pressures, rising regulatory demands, heightened customer expectations, and increasing threat from new entrants are some of the key challenges faced by insurance firms today. In such a non-conducive environment, shareholder return has become a top priority for insurers as they focus on sustaining margins.

Insurers have a triple mandate of “grow, optimize, and defend” in order to generate sustained value for all stakeholders. Growth initiatives primarily include adoption of digital technologies, introduction of differentiated products, and improvements across distribution channels. To drive operational efficiencies, insurers should focus on detecting and preventing the leakage of value through fraud, poor performance of non-core assets, and legacy systems. At the same time, insurers need to defend their business from technology disruption by investing in innovation efforts, strategic alliances, and expansion of insurance ecosystem.

In this report, we analyze the current market trends and their implications for application services outsourcing in the global insurance sector. We focus on:

• Industry challenges and key investment themes in insurance AO
• Market activity for large AO relationships in insurance
• Outlook for 2017

The research also captures key movements in volumes/values of insurance AO transactions, evolving trends, market dynamics, and emerging priorities of buyers in the last 12 months.

Scope of the analysis

• Industry: Insurance (life, annuity, and pensions; property & casualty; and reinsurance); excludes capital markets (investment banking, asset management, custody & funds administration, and brokerage services); retail & commercial banking, and healthcare payers
• Services: Large (TCV > US$25 million), multi-year (>three years), and annuity-based application outsourcing
• Geography: Global
• Sourcing model: Third-party AO transactions; excludes shared services or Global In-house Centers (GICs)

CONTENT

This report is structured across three sections, each offering insights from the application outsourcing business in the insurance sector, with a specific focus on large-sized contracts:

• Market dynamics, challenges, and key investment themes in insurance AO
• Insurance AO overview: Analysis specific to the insurance AO industry with a focus on large transactions:
• Market size and growth
• Insurance AO transaction activity and growth trends
• Demand characteristics for insurance AO services by geography, line of business, AO subfunctions, and buyer size
• Global delivery locations
• Renewal activity
• Outlook for 2017

Membership(s)

Banking, Financial Services & Insurance (BFSI) - Information Technology Outsourcing (ITO)