Life and Pensions (L&P) Insurance BPO - Annual Deal Trends Report 2019

26 Dec 2018
by Saurabh Verma, Skand Bhargava, Somya Bhadola

For the past couple of years, activity in the L&P insurance BPO market was constrained as buyers were being challenged by macroeconomic upheavals, regulatory constraints, margin pressures, and demanding customers. In response to this, both the buyers and providers of L&P insurance BPO services slightly shifted their paradigm of outsourcing relationships toward more strategic and digital-oriented engagements.

As the macroeconomic disturbances caused by Brexit began settling, buyers in the United Kingdom are now again open to outsourcing after a brief period of stagnation in activity. Demand for digital proficiency nudged the market toward transformative engagements coexisting with traditional relationships. Also, as buyers started to react to the legacy infrastructure impediments to innovation, outsourcing policy administration, backed by modernized and integrated platforms under the BPaaS construct, witnessed positive movements.

While the buyers’ need to leverage digital technologies to exploit the underlying treasure of data and achieve differentiation continued to impact the value propositions offered by service providers, the pace of change has been slower than expected. However, as the L&P insurance industry structurally adapts to strategic needs, digital inclusion in BPO contracts would consequently get accelerated.

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 the 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 seen a consistent pace of Year-on-Year (YOY) growth since 2014 that has been in the range of 9-10%. The growth is expected to accelerate in the future owing to both demand and supply developments
  • New deal signings were witnessed across multiple geographies including the United States, the United Kingdom, Asia Pacific, and Continental Europe. L&P insurance BPO signing activity was the most intense in North America and Continental Europe
  • Ensuring buyer satisfaction has become absolutely essential for service providers as renewals account for the majority of signing activity. Additionally, as buyers endeavour to move up the value stream in their outsourcing relationships, service providers need to consequently build supporting capabilities
  • Adoption of Robotic Process Automation (RPA) and analytics in L&P insurance BPO contracts has steadily been increasing. However, the pace of adoption is slower than expected owing to multiple reasons such as complications around contract pricing for RPA leverage
  • The demand for BPaaS models is getting stronger as service providers have developed suitable domain expertise and supporting platform capabilities over the years that could address buyers’ margin issues, volume fluctuations, and archaic technology infrastructure challenges

Membership(s)

Insurance - Business Process Outsourcing (BPO)

 

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