L&P Insurance BPO: Move or Miss – Innovation, Execution, and Adoption of Digital Insurance

27 Nov 2017
by Skand Bhargava, Somya Bhadola

The global L&P insurance BPO market continues to show steady growth. It registered ~7% growth in revenue in 2016, similar to its growth in 2015. In terms of FTEs, the market witnessed deployment strengthened by ~8%. L&P insurance BPO adoption remains concentrated in North America and the United Kingdom, which together account for more than 90% of the revenue. While the latter leads the market and accounts for nearly three-fifths of the global revenue, market growth is primarily being driven by North American buyers. Though Asia Pacific and Eastern Europe have been showing traction, these markets are yet to attain the size to drive market growth.

The market is seeing an increasing emphasis on more complex and judgment-intensive work such as analytics, risk management, actuarial, and regulatory reporting. Robotic Process Automation (RPA) has raised the potential for cost savings and efficiency achievable with BPO, and is steadily gaining traction in the industry. This gives service providers the opportunity to deliver greater benefits to their clients and differentiate themselves from the competition. Innovation is also being seen in pricing, with traditional pricing models such as FTE-based and fixed-fee models being replaced by outcome-based pricing models.

Scope and Methodology

  • Proprietary database of 300+ L&P insurance BPO contracts (updated annually)
  • Coverage of 20+ L&P insurance BPO service providers including Accenture, Capgemini, Capita, Cognizant, Concentrix, DXC Technology, EXL, Genpact, Infosys, Intelenet, NIIT Technologies, NTT DATA, SE2, Syntel, TCS, Tech Mahindra, and WNS

Content

This report provides comprehensive coverage of the global L&P insurance BPO market, including adoption trends across geographies & buyer size, factors impacting the market, key solution characteristics, emerging trends, and service provider landscape. It will assist key stakeholders (L&P insurers, service providers, TPAs, and technology providers) to understand the changing dynamics of the L&P insurance BPO market and identify the upcoming trends. Some of the findings in this report are:

  • The L&P insurance BPO market has been growing at 7-8% and is expected to grow at 9-11% in the coming years
  • The market continues to be primarily concentrated in North America and the United Kingdom. While the United Kingdom accounts for a lion’s share of the market, growth is primarily being driven by North America
  • Uncertainty around regulatory regimes continue to persist and insurers would need to invest in flexible systems to ensure compliance and reporting
  • Discussions around relevance of next-generation technologies – AI, Blockchain, and IoT – in L&P insurance have intensified and some implementations have also been initiated by insurers, in partnerships with InsurTechs and technology providers
  • Service providers are simultaneously strengthening capabilities around value-added services, such as RPA, digitalization, analytics, risk management, and regulatory reporting via organic and inorganic routes

Membership(s)

Insurance - Business Process Outsourcing (BPO)

 

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