The
global insurance BPO market has been valued at US$2 billion by the end of 2012.
and segment grew by 17% annually. Third-party
Business
Process Services (BPS) in the insurance industry currently a US$6-8 billion
market growing at ~17% annually.
Post
2008 Financial crisis there had been a stable growth in the number of contracts
signed in both the Life & Pensions (L&P) and Property & Casualty
(P&C) lines. In fact
the contracts almost doubled in number when compared to 2008-2009 when the
financial crisis had a severe impact on the insurance companies. BPS in
insurance rebounded with 53 new, publicly-announced contracts signed in
2010-2011.
United
States and United Kingdom are the primary markets for Indian Insurance BPO
vendors, but the market is also going global and activity is picking up in
other regions of the world too. Asia Pacific showed significantly increased
activity over the last one to two years .
Insurers
expect BPO as a
key tool to cut costs, improve operations, and manage regulations. Service
providers are
differentiating their
offerings through better technology, strong delivery capabilities, and the
ability to serve niche segments.
The
2012 insurance BPO PEAK Matrix has three:
1. Leaders
(EXL Service, TCS, and WNS)
2. Major
Contenders (Genpact, HCL, Infosys, and Wipro)
3. Emerging
Players (Capgemini,
Cognizant, and Serco)
4. Leaders
control 60% of the overall insurance BPO market in revenue terms with healthy
growth rate.
5. EXL
Service is dominant player in the U.S. BPO insurance market.
6. TCS
dominant in the UK BPO insurance market
Industry-specific BPO accounts for over 60% of BPO contracts
in insurance, spanning product development and business acquisition, new
business, policy servicing and reporting, and claims processing.
Leaders have a wide scale of operations and have a
significant advantage over Major Contenders and Emerging Players. Capabilities
of the major players differ not only in terms of the variance of the service
offerings but also in terms of the Geographies they are servicing successfully.
Leaders and Major Contenders have built delivery
capabilities from various different locations and this global delivery presence
is a big competitive advantage when compared to Emerging Players.
The five themes identified Everest group are Platform-based
BPO offerings, increasing focus on the U.S. closed books BPO market, inclusion
of complex processes in insurance BPO contracts, higher degree of on shoring,
and regulatory and risk management BPO.
Source: Everest Group.
1 comment:
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