Insurance BPO Vendor Profile – Wipro BPO

Wipro’s insurance practice works with 35+ global insurers including many among the Top 500 organizations. Wipro customers include 4 of the top 6 P&C carriers in the world, 2 of the top 5 health insurance and service providers globally and 4 of the top Life, Annuity & Pension carriers in the world. Wipro is uniquely positioned to provide strategic and innovative solutions based on 3000+ person-years of experience in managing ~150Mn claims transactions annually for leading insurers.

Offerings cover the entire spectrum of the insurance value chain from Sales & Distribution, Policy Administration, Risks & compliance and claims, straddling across Life and P&C markets and delivered by over 6000+ dedicated resources. Wipro expertise in Business Advisory services, solutions and Centers of excellence reflect their commitment towards building the future of insurance. 4000+ consultants with an average experience of 10 years have delivered innovation in products, branding, marketing and pricing strategies.

Partnerships & Alliances: Camilion Solutions, eBaoTech, OneShield, Pega Systems, Prima IBCS, SAP, SSP. Associated Services (ITO + BPO Bundled Service) – Managing approximately 115MN transactions annually for their customers, Wipro is ranked amongst the top 3 in terms of volumes handled in the BPO Space.

With a client base of 140+ Health insurers and Offices spread across Atlanta - US, Monterrey - Mexico, Curitiba -Brazil, Wroclaw - Poland, Bucharest – Romania, Chengdu & Shanghai – China, Cebu City – Philippines, Yokohama - Japan, company is capable of providing multi-lingual support in English, Spanish, Portuguese, German, French, Chinese, Japanese.

Insurance BPO Vendor Profile – WNS

WNS insurance outsourcing service offerings extend across the insurance value chain of Property and Casualty, Life, Pensions, and Annuity. Services related to Product Development, Sales & Distribution, Policy Administration, Claims Administration, Analytics, Finance & Accounting and Customer Care.

With a dedicated team of over 7,500 professionals for the insurance industry, WNS manages over 40 million claims per year helping insurers streamline their claims operations. WNS recently positioned industry 'leader' for Insurance BPO in Everest Group's  Insurance BPO PEAK Matrix.

In January 2012, Australian insurance major Suncorp gave majority portion of the order worth $220 million to WNS for end-to-end insurance outsourcing for a period of five to seven years.

WNS won a $228-million contract from UK-based Aviva in 2008 for all in-scope services related to Aviva's life & general insurance businesses in the UK and Canada. Based on the anticipated service requirements of these businesses, WNS estimates Master Services Agreement could generate $1 billion in revenues over the life of the contract. WNS also benefits from a recently signed AGS contract for approximately 580 employees with Aviva's Irish subsidiary, Hibernian.

In June 2012, WNS has acquired South Africa-based Fusion Outsourcing Services in an all cash deal of over £10 million or $15.5 million. Fusion currently employs about 1,500 people and the centre currently offers high-end voice services with plans to start financial, accounting and insurance services.

Insurance BPO Vendor Profile – EXL Service

EXL’s insurance experience is proven by 60 leading global insurance carrier clients and the tenure of more than 4,000 industry professionals and is dominant player in the US Insurance BPO Market. EXL provides high quality services and better controls support to clients allowing them to be more efficient and to better understand their customers, their markets and their risks. Clients leverage EXL’s outsourcing, analytics, advisory and risk management capabilities.

Collaborate with clients to understand their priorities & design solutions to address insurers needs and support them to manage claims, enhance subrogation services, improve first notice of loss, build compliance preparedness, improve underwriting margins, optimize loss ratios, increase customer penetration or accelerate customer reach, &  help P&C, life, annuity and health insurers become competitive.

In October 2012, EXL acquired Landacorp, a provider of software in support of clinical data exchange in the healthcare industry  and acquisition brings 15 payer clients and 50 provider clients and Landacorp has  50 million members under management on its platforms

In October 2011, EXL acquired Trumbull Services, a specialized provider of Insurance BPO services in the Property & Casualty (P&C) segment in the US, which has a ready-made technology platform to offer in  U.S. P&C Insurance BPO space and the insurance subrogation BPO business in particular. In May 2010, it acquired PDMA, the maker of LifePRO, a policy administration system in the Life Insurance BPO market deployed with 40+ insurers around the world.  

Global Insurance BPO Market 2012

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. https://research.everestgrp.com/Product/11922  

2. https://research.everestgrp.com/Product/11946