Introduction

Insurance BPO is a US$2.3 billion market growing at a healthy 12 to 15% annually. While BPO activity across Life & Pensions (L&P) and Property & Casualty (P&C) segments continues to be high, commercial insurers and reinsurers are also looking at BPO to further increase efficiency and effectiveness of their operations. Beyond United Kingdom and United States, Asia Pacific and Rest of Europe are also witnessing high levels of activity. The scope of BPO relationships is also expanding beyond transactional activities into more complex judgment-intensive work such as actuarial, underwriting, and analytics.

Scope and Methodology

This report focuses on the service provider landscape of the global insurance BPO market. We analyze:

• Relative positioning of 16 service providers on Everest Group’s PEAK Matrix for insurance BPO
• Service provider market success
• Service provider capability assessment across key dimensions
• Emerging service provider trends
• Implications for insurers and service providers

Content

This report will help key stakeholders (insurers, service providers, and service enablers) identify market Leaders, Major Contenders, and Emerging Players in the insurance BPO market and compare capabilities of market leaders vis-à-vis others. At the same time, it will also highlight the key emerging trends in the insurance BPO market and the key implications for buyers and service providers. The report provides detailed analysis of the service provider market shares, relative position on Everest Group PEAK Matrix, service provider capability assessment, and emerging service provider trends. Some of the findings of this report are:

• Everest Group classifies 16 insurance BPO service providers on Everest Group Performance | Experience | Ability | Knowledge (PEAK) Matrix into the three categories of Leaders, Major Contenders, and Emerging Players
• The PEAK Matrix is a framework to assess the absolute market success and overall capability of service providers
• The 2013 insurance BPO PEAK Matrix positioning is as follows:
• Leaders: CSC, EXL, TCS, and WNS
• Major Contenders: Cognizant, Dell, Genpact, HCL, Infosys, Serco, Sutherland Global Services, and Wipro
• Emerging Players: iGATE, MphasiS, Syntel, and Tech Mahindra
• Cognizant and TCS emerged as the “Star Performers” since they demonstrated the strongest forward and upward movement year over year on the PEAK Matrix
• TCS has the largest market share by revenue, while EXL has the largest number of insurance BPO clients. CSC and WNS are the other two players that make up the top quartile by market success
• EXL and TCS have the largest scale of insurance-specific BPO. The top quartile performers by scale typically sign larger contracts and recognize higher revenue per FTE than other service providers
• Each insurance LoB and geography is dominated by different providers
• L&P and P&C insurance buyers have very difficult technological needs driven by the different nature of their industries and their products
• All service providers assessed, have strong offshore capabilities through presence in India