As the L&P insurance industry reaps increasing investments returns and premium growth, insurers that aim to accelerate their growth are looking at prudent allocation of resources in strategic investments. Such investments, whether in skilled people, digital technologies, or rewarding acquisitions, are aimed at aligning business portfolios and operations with attractive customer segments and differentiating by delivering superior service in those segments. To achieve this differentiation, insurers are adopting a two-pronged approach:

• Minimizing the burden of existing legacy infrastructure, disintegrated operations, and non-strategic closed books
• Investing in achieving system flexibility to enable product/distribution innovation and rapid speed-to-market in existing or new geographies

To successfully support these initiatives, insurers are partnering with BPO/TPA service providers via different engagement models, ranging from traditional BPO services to end-to-end platform-led TPA services. The deals being signed in the market reflect this evolution in buyer-service provider relationship, with larger engagement sizes, higher leverage of modern policy administration platform outcomes-driven partnerships, and increasing adoption of digital and associated consulting solutions.

Both large and small buyers are actively contributing to increasing adoption of such engagements. From a geography standpoint, North America and Asia Pacific are high growth markets with flourishing scope of partnerships for active blocks support in addition to closed blocks. In terms of product lines, while life insurance blocks have been dominant outsourced, annuities/pensions – which is characterized by increasing regulatory burdens and the need to educate/retain customers – is experiencing higher growth.

Scope and methodology

• Proprietary database of 320+ 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 (now acquired by Teleperformance), NIIT Technologies, NTT DATA, SE2, Syntel, TCS, Tech Mahindra, and WNS

Membership(s)

Insurance - Business Process Outsourcing (BPO)