Introduction

The global insurance BPO market has grown steadily over the last three years to reach ~US$2.9 billion. While L&P segment accounts for the larger share of the market, P&C segment is growing at a faster pace, with more new signings over the last two years. Over the next two years, growth is expected to be driven by increasing adoption within the small- and mid-sized buyer segments and higher inclusion of judgment-intensive processes.

With commoditization of labor arbitrage, two key value levers have emerged – automation and analytics. Increasing adoption of automation along with higher adoption of platform-based solutions within insurance contracts is reducing the FTE-intensive play in transaction-based processes such as claims processing. With increasing inclusion of judgment-intensive processes, expertise in analytics is the key differentiator.

Scope and Methodology

• Proprietary database of about 350+ insurance BPO contracts (updated annually)
• Coverage across 19 insurance BPO service providers including Cognizant, CSC, Dell, EXL, Genpact, HCCA HC, HCL, IGATE, Infosys, MphasiS, NIIT Technologies, Serco, Sutherland Global Services, Syntel, TCS, Tech Mahindra, WNS, Xerox, and Xchanging

Content

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

• The insurance BPO market has grown at a healthy CAGR of ~12% over last two years. P&C insurance BPO has registered a CAGR of ~22%, which is more than three times that of Life and Pensions (L&P) insurance BPO at ~7%
• United Kingdom continues to dominate the L&P insurance BPO, while North America dominates the P&C market and continues to lead the insurance BPO adoption. Under-penetrated markets, such as Asia Pacific and Continental Europe, are expected to witness increased adoption and catalyze the growth in mid- to long-term future
• The L&P and P&C segments have contrasting characteristics in terms of adoption by buyer segments. While the large buyers continue to drive adoption in L&P insurance BPO, small-sized buyers drove it in the P&C segment in 2014. In L&P, the average deal size for large buyers is more than double the figure for small-sized buyers, whereas in P&C, both are almost equal
• With commoditization of labor arbitrage, two key value levers have emerged – automation and analytics
• Increasing adoption of automation along with higher adoption of platform-based solutions within insurance contracts is reducing the FTE-intensive play in transaction-based processes such as claims processing
• With increasing inclusion of judgment-intensive processes, expertise in analytics (beyond just operational one) is the key differentiator
• The reinsurance market has witnessed higher BPO adoption in the last two years in both North America and United Kingdom